This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - PUPR perluas kerja sama infrastruktur di KTT Khusus ASEAN-Australia
8 March 2024
By Dinisio Damara
Jakarta, ID – The Public Works and Housing (PUPR) Ministry is exploring cooperation in the infrastructure sector with three countries, namely Australia, New Zealand, and Cambodia.
This occurred during the official visit of PUPR Minister Basuki Hadimuljono, accompanied by Coordinating Minister for Economic Affairs Airlangga Hartarto, State Secretary Minister Pratikno, and Foreign Affairs Minister Retno Marsudi, accompanying Indonesian President Joko Widodo (Jokowi) at the bilateral meeting with Australian Prime Minister (PM) Anthony Albanese, New Zealand PM Christopher Luxon, and Cambodian PM Hun Manet in Melbourne, Australia on Tuesday (5/3).
The bilateral meeting is a component of the ASEAN-Australia Special Summit, convened to commemorate 50 years of ASEAN-Australia partnership. The discussions encompassed topics such as sustainability and collaborative opportunities among nations, particularly within the infrastructure sector.
Minister Basuki said that cooperation between Indonesian and Australia in infrastructure development was realised through the Indonesia-Australia Partnership for Infrastructure (KIAT). With a cooperation value of 150 million Australian dollars, this partnership was effective until 30 June 2022. “The KIAT programme has been extended to June 2026. Collaboration through the programme will focus on the water and sanitation sector, the transportation sector, and the infrastructure financing sector,” Basuki said in his press statement as quoted on Thursday (7/2/2024).
In the infrastructure sector, another collaboration with the Australian government involves the construction of Palembang Integrated Domestic Wastewater Treatment System (SPALD-T), which President Jokowi inaugurated on 26 October 2023. The grant, totalling around 67 million Australian dollars, was utilised for building the wastewater treatment plant and pump stations capable of serving 120,000 people with a daily capacity of 20,000 m3.
“The Indonesian government is also continuing the construction of its pipeline network. Starting from the main collecting pipe to household connections with the same investment value,” Basuki added.
Moreover, the collaboration extends to the strategic study sector involving the PUPR Ministry, Bappenas, and the Australian government through the Study on the Strategic Assessment of Toll Road Development (I-SAT), which was underway from September 2022 to February 2024. The research outcomes offer strategic recommendations to enhance the toll road implementation system. This encompasses improvements in quality, feasibility studies, land acquisitions, asset monetisation schemes, new KPS modality, project tenders, integrated information technology systems, and the regulatory framework.
“DFAT and the PUPR Ministry have signed an agreement for the handover of the management of Nusantara Capital City (IKN) projects, valid from March 2023 to June 2024. This initiative offers crucial management support to the IKN Task Force. Additionally, the OIKN (IKN Authority) has formally partnered with the National Capital Authority (NCA), marked by the signing of an MoU on 27th February 2024. This collaboration is geared towards promoting the development of a clean, green, and technologically advanced environment in IKN,” Basuki explained.
During the event, Basuki expressed the Indonesian government's interest in enhancing its bilateral relationship with the Cambodian government, particularly in the fields of irrigation technology and ecosystem-based tourism villages. Additionally, the Indonesian government aims to reinforce its ties with the government of New Zealand through the LPDP programme, considering that New Zealand and Australia are favourite destinations for students benefiting from the international education scholarship. “Similar to the statement of President Jokowi to each PM, the Indonesian government cordially invites Australian PM Anthony Albanese and New Zealand PM Christopher Luxon to attend the 10th World Water Forum in Bali from 19 to 20 May 2024, particularly in the head of state segment,” he added.
“The Indonesian government is delighted to also extend invitations to ministers from New Zealand and Cambodia to actively participate in the political process forum, specifically in the ministerial segment, during the 10th World Water Forum. We anticipate fruitful outcomes and commitments in the water resources sector from this collaboration,” he stated.
Minister Basuki was accompanied by Expert Staff to the PUPR Minister for Technology, Industry, and Environment Endra S. Atmawidjaja.
