Jakarta, The Indonesia Post – The Minister of Finance (Menkeu) Sri Mulyani said that innovative financing was urgently needed to overcome the quite large infrastructure funding gap in Indonesia.
“The gap (funding) for our infrastructure can be tens, hundreds, even thousands of trillions of rupiah,” said Sri Mulyani at the “Innovative Financing in Unity” (INFINITY) event, which was monitored online in Jakarta, Wednesday.
Thus, the development of financing patterns for infrastructure development is urgently needed, especially innovative financing, so that infrastructure development does not always wait for funds from the state revenue and expenditure budget (APBN).
According to the State Treasurer, infrastructure needs are always very urgent, especially for Indonesia which wants to get out of the middle class trap, aka the middle income trap. These needs, ranging from clean water, roads, dams, irrigation, railroads, to satellites, require financing.
Therefore, innovative financing is needed through collaboration with ministries/agencies, local governments, and business entities. Only then arrange the financing structure of an infrastructure need.
Not only for ordinary infrastructure, he continued, funding is currently also being provided for innovative activities such as street lighting to waste management in the regions.
“On the way, after the Ministry of Finance has to understand, we need partners. Then, we also have to talk to state-owned enterprises (BUMN) and about the guarantee scheme,” she said.
Therefore, Sri Mulyani said that the role of PT Penjaminan Infrastruktur Indonesia (PII) in this matter was important so that the government provided state equity participation (PMN) of IDR 10 trillion from 2009-2022.
From the PMN provided, PT PII has been able to guarantee projects worth IDR 533 trillion with a guarantee value of IDR 94 trillion. (mhn/bbs)
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