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Infrastructure Development Acceleration Requires Innovative Financing

Economics editor Dian Kusumo
03/03/2023 14:44 WIB
The process of infrastructure development in Indonesia is not easy.
Infrastructure Development Acceleration Requires Innovative Financing. (Photo: MNC Media)
Infrastructure Development Acceleration Requires Innovative Financing. (Photo: MNC Media)

IDXChannel - The process of infrastructure development in Indonesia is not easy. From planning, budgeting, to execution, there are many risks that can be disruptive.

This was revealed by Minister of Finance Sri Mulyani Indrawati at the Innovative Financing in Unity event of PT Penjamin Infrastruktur Indonesia (PII) in Jakarta, yesterday.

Moreover, said Sri Mulyani, if you only rely on the state budget, it will be difficult to solve the infrastructure gap in Indonesia.
"If you wait for the availability of the state budget, there will always be a gap," said the former Managing Director of the World Bank.
For this reason, the Government encourages innovative financing so that infrastructure development can run.

The state treasurer said development projects include roads, bridges, tolls, and the need for street lighting and waste handling in the area.

"Everything is not only about needing money, then the APBD is waiting for the state budget. So an innovative financing scheme was created involving the private sector through the Government Cooperation with Business Entities (PPP) scheme," he explained.
Sri Mulyani appreciated the PII business that provides more flexible financing schemes than just waiting for the availability of the state budget.

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