JAKARTA | INDATANEWS.COM - The Deli Serdang Regency Government is exploring the possibility of establishing a Public-Private Partnership (PPP) to accelerate the expansion of street lighting infrastructure. The initiative forms part of the regional government's strategy to speed up infrastructure development through innovative financing schemes without relying entirely on the Regional Budget (APBD).
The discussions were held by
Deli Serdang Regent dr. H.
Asri Ludin Tambunan during a meeting with PT Penjaminan Infrastruktur Indonesia (Persero), commonly known as PII, on Thursday, October 1, 2026, in Jakarta.
PT PII Director of Business Development Wibawa Pram Sihombing welcomed him alongside several other company representatives.
During the meeting, Asri Ludin Tambunan explained that Deli Serdang's strategic position as a neighboring regency to Medan and one of the economic growth centers in North Sumatra requires adequate infrastructure facilities.
In his view, the regional government needs to collaborate with various stakeholders to accelerate infrastructure development as efficiently as possible. One potential approach is the PPP scheme, which allows private companies to participate in financing and implementing infrastructure projects.
"Deli Serdang cannot handle these responsibilities alone. This approach creates opportunities to develop infrastructure through innovative financing schemes without immediately placing the entire financial burden on the Regional Budget," he said.
He explained that the regional government does not have to meet all development requirements using its own resources. Instead, it needs to create opportunities for partnerships and involve various stakeholders according to their respective roles, responsibilities, and capacities.
Cooperation to Accelerate Infrastructure Development
Asri expressed confidence that discussions on the potential partnership could proceed to the next stage. The
Deli Serdang Regency Government has already received support from the Governor of North Sumatra and
PT PII to advance infrastructure development through innovative financing schemes.
At the same time, he emphasized that the regional government must complete all required procedures and project stages in accordance with applicable regulations. Support from the Regional House of Representatives (DPRD) is also an important factor in ensuring that project preparations proceed smoothly.
"We are optimistic because we have already received support from the Governor and
PT PII. Now, we must consistently complete the subsequent procedures, including securing support from the Regional House of Representatives," he explained.
The Deli Serdang Regency Government hopes that preparations for the PPP project to expand street lighting can continue in accordance with established procedures and legal requirements. The project is expected to enter the implementation phase in 2027 or 2028.
According to the Regent, expanding
street lighting is not merely about improving the quality of public facilities. Adequate lighting also plays an important role in supporting daily activities, improving mobility, and creating additional economic development opportunities in various areas.
For this reason, the regional government hopes that investments in street lighting expansion will deliver long-term benefits to the community. In addition to providing greater comfort and safety for road users, adequate lighting can also help stimulate economic activities in areas that have previously lacked sufficient illumination.
"We hope that new investments will encourage economic growth while directly increasing people's incomes. The ultimate goal is to improve community welfare," Asri said.
PUBLIC-PRIVATE PARTNERSHIP: Deli Serdang Regent Asri Ludin Tambunan expresses confidence in the ongoing discussions concerning the PPP project to expand street lighting infrastructure. Implementation could begin in 2027 or 2028. (PHOTO: Edi Saputra)
PII Supports Innovative Financing Schemes
Meanwhile, PT PII Director of Business Development Wibawa Pram Sihombing welcomed the Deli Serdang Regency Government's initiative to develop infrastructure projects through the PPP scheme, particularly the construction and expansion of street lighting facilities.
Wibawa explained that the demand for infrastructure development across various regions of Indonesia continues to increase. At the same time, the government's financial resources remain limited. Therefore, both the central and regional governments need to explore alternative financing schemes to ensure that essential development projects can proceed.
In his view, involving private companies through the PPP scheme could provide a way to address these needs. This form of cooperation would enable the government to access additional funding sources beyond conventional allocations from the State Budget (APBN) and Regional Budgets (APBD).
"Infrastructure development is urgently needed. However, the budget allocated by the government is limited. Therefore, we need innovative financing schemes that go beyond the State Budget, Regional Budgets, and other government funding sources," Wibawa explained.
He further stated that PT PII could provide guarantees for PPP projects in accordance with applicable regulations and the respective project stages. These guarantees are intended to strengthen project security while improving the bankability of projects for participating companies.
The provision of guarantees is an important instrument for encouraging private-sector participation. By offering greater certainty within the applicable regulatory framework, regional governments will have better opportunities to attract investment for infrastructure projects.
Wibawa also revealed that PT PII had gained experience supporting street lighting projects through public-private partnerships. One such reference project is located in the city of Madiun.
These experiences could serve as a basis for providing consultation and assistance to other regional governments seeking to expand their
street lighting infrastructure through cooperation between the government and private companies.
GUARANTEE PROVISION AND PROJECT PREPARATION SUPPORT: PT PII Director of Business Development Wibawa Pram Sihombing explains his company's readiness to provide guarantees, assist with project preparation, and strengthen the capabilities of the Deli Serdang Regency Government's project team. (PHOTO: Edi Saputra)
Street Lighting as a Driver of Economic Growth
Furthermore, Wibawa emphasized that expanding street lighting infrastructure involves much more than simply providing illumination for road users. Such facilities can also improve public mobility and goods transportation while creating new economic opportunities in areas with adequate lighting.
Well-lit roads make it easier for people to carry out their activities, particularly at night. Improved mobility can also stimulate trade and the service sector, generating positive economic impacts for surrounding communities.
"When roads are properly illuminated, economic activities can benefit. Goods transportation becomes smoother, and new businesses can emerge. This is precisely the multiplier effect we expect from these investments," he said.
Wibawa added that preparing a PPP project requires strong commitment and close coordination among all stakeholders. The process cannot be completed in the short term, as both the regional government and participating companies must go through several stages, ranging from project preparation to the implementation of the partnership.
To support this process, PT PII expressed its readiness to assist the Deli Serdang Regency Government. The assistance will cover project preparation, capacity building, and strengthening the personnel and relevant teams within the regional government agencies responsible for implementing the PPP scheme.
He expressed hope that the commitment demonstrated by the
Deli Serdang Regent, combined with
PT PII's support and professional assistance, would facilitate preparations for the
street lighting project. Through effective coordination, all project stages are expected to be completed in accordance with applicable regulations, allowing the initiative to proceed to the implementation phase.
"We are confident that this initiative can be implemented through the Regent's commitment and our professional support. We are also ready to assist with project preparation and further develop the capabilities of your team," he concluded.
The meeting was also attended by
Deli Serdang Regional Secretary Dedi Maswardy, Inspector Edwin Nasution, Acting Head of the Transportation Agency TM Yahya, several representatives of relevant regional government agencies, and other PT Penjaminan Infrastruktur Indonesia employees.
By exploring the PPP scheme, the Deli Serdang Regency Government hopes to secure additional financing opportunities for infrastructure development, improve the quality of street lighting, and generate broader economic benefits for the community. (IDNC)
REPORTER:
Edi Saputra | EDITOR:
Fik Sagala