"The development of infrastructure is important to increase economic activity, especially outside Java," Deputy Chairman of the Financial Services Authority (OJK), Nurhaida, said in a public lecture here on Monday.
The need for infrastructure financing from private parties during 2015-2019 amounted to Rp2.414 trillion, which is targeted to come from the capital market, banking, and finance companies, Nurhaida stated.
"OJK encourages diversification of infrastructure financing, such as from capital markets, which have been prepared to finance the capital market, such as Collective Investment Contract of Asset Backed Securities (KIK-EBA) and a limited participation mutual fund (RDPT)," he remarked.
In recent months, several companies have issued Collective Investment Contract of Asset Backed Securities (KIK-EBA), such as PT Jasa Marga Persero Tbk, PT PLN Persero and PT Sarana Multigriya Finansial (SMF).
On that occasion, Bogor Agricultural University Rector, Herry Suhardiyanto, expected the OJK to enlarge the flow of economy among small communities, such as farmers, fishermen, ranchers, and micro small entrepreneurs, in an attempt to improve the welfare of the community.
The Central Government will carry out the construction of 245 infrastructure projects, including toll roads, airports, and seaports, an official earlier explained.
"The investment for the hundreds of projects and two additional programs will cost around Rp4,197 trillion," head of sub division of budget and accountancy of state asset management agency (LMAN) of the finance ministry Goklas TP revealed.
The projects include 74 roads, 23 railway infrastructure, 10 ports, 8 airports, 30 industrial estates, three housing projects, and 54 dams.
The two additional programs are electricity and aircraft industry projects.
LMAN, which has planning in financing and utilization of land bank and compensation for land, received Rp16 trillion in state capital participation in 2016 and Rp32 trillion in 2017, Goklas elaborated.
"We are here to finance land procurement for use by other agencies, so that the land used for any projects would be recorded as state assets," he concluded.
(UU.A063/A/KR-BSR/A/H-YH)
Reporter: Antara
Editor: Heru Purwanto
Copyright © ANTARA 2017
