Indonesia's Public Works Minister, Dody Hanggodo, announced plans to revise Law No. 17/2019 on Water Resources to enable private investment in dam construction through public-private partnership (PPP) schemes. Legal constraints, particularly Article 5—which mandates state control of water resources for public welfare—have stalled progress on PPP-based projects like the Merangin Dam in Jambi and another in Central Java, despite their readiness since 2021. Dody cited the successful PPP model of the Cirata Floating Solar Power Plant (IDR 1.7 trillion or US$104 million investment) as a precedent and stressed that any investor must uphold the irrigation and social functions of dams. The Merangin Dam, valued at IDR 3.73 trillion (approximately US$229 million), has attracted strong interest from 11 investors, including parties from South Korea, China, and Germany. The project will offer a 30-year concession and a 10% internal rate of return (IRR), based on a mixed-return scheme of availability payments and tariffs. Dody expressed optimism that legal revisions could be made swiftly to unlock such projects and further infrastructure development through private sector collaboration.Source: https://indonesiabusinesspost.com/4440/investment-and-risk/government-signals-legal-reform-to-attract-dam-investment (ICE GIACARTA)

Fonte notizia: Indonesia Business Post, 4 June 2025