National Development Planning Minister Bambang Brodjonegoro was delivering a speech before participants of a workshop titled Unlocking Indonesia's Potential in Procuring Social Sector Projects Through Public Private Partnerships held in Jakarta on December 4, 2018
The Islamic Development Bank (IsDB) is expected to be involved in the development of education in Indonesia through Public-Private Partnerships (PPP).
"The national budget for education in Indonesia is 20 percent, or around Rp440 trillion, and this is the biggest among other sectors. However, this budget is not sufficient, given the complexity in enhancing the level of education, so the Public-Private Partnerships scheme is needed in this development program," Minister of National Development Planning Bambang Brodjonegoro remarked in a keynote speech at a workshop themed "Unlocking Indonesia`s Potentials in Procuring Social Sector Projects Through Public-Private Partnerships" held in Jakarta, Tuesday.
He added that the level of education in Java was relatively even, at 11.5 years. However, in other areas, such as Papua, the education level was still 8.5 years.
According to Brodjonegoro, the government is currently enhancing the quality of education and equitable distribution of educational facilities and infrastructure, ranging from early childhood education to higher education and at the same time improving the quality and competence of teachers.
"The government is also improving the quality of vocational education to reduce the rate of unemployment and offering education that is in tune with the demands of the industry through the link and match program that aligns education with the requirements of the job market," Brodjonegoro remarked.
According to Brodjonegoro, education is a new sector for the private sector in expanding its business.
He explained that the private sector can take part in designing, building, and financing the operation and maintenance of a development project, while the government has a role in the acquisition and provision of lands, issuance of regulations, and management of risks and uncertain conditions that might arise during the project.
"The IsDB can be involved in the PPP scheme for the construction of social infrastructure. Guarantees from the government, through ministries, government agencies, local administrations, and related state-owned enterprises, will make a project more feasible," Brodjonegoro stated.
In addition to education, IsDB is expected to be involved in health sector development projects within the framework of PPP.
Brodjonegoro noted that the health and education development program is expected to obtain financial support from IsDB, as the two sectors are not only included in the Sustainable Development Goals (SDGs) but are also the prioritized agenda of the Indonesian government.
He stressed that SDGs are more of an opportunity to invest rather than the development goals.
The workshop held by the ISDB brings together several ministries, local administrations, and the private sectors to build in-depth knowledge on PPP in the development of social infrastructure, especially the health and education sectors. (ANTARA)