Infrastructure development until 2024 needs Rp6,421 trillion of fund

Infrastructure development until 2024 needs Rp6,421 trillion of fund

Finance Minister Sri Mulyani Indrawati (right) and Public Works and Housing Minister Basuki Hadimuljono (left) after witnessing the signing of an agreement to manage the Semarang-Demak toll road in Jakarta, on Monday (Sept 23, 2019). (ANTARA News/Dewa Wiguna/suharto)

The government's annual infrastructure spending currently stands at some Rp400 trillion. (In each of the next five years), it may come close to Rp500 trillion, thereby totalling Rp6,421 trillion
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati has projected that funds reaching Rp6,421 trillion will be required for infrastructure development in Indonesia during the 2020-2024 period in line with the National Medium-Term Development Plan (RPJMN).

"The government's annual infrastructure spending currently stands at some Rp400 trillion. (In each of the next five years), it may come close to Rp500 trillion, thereby totaling Rp6,421 trillion. The government is not likely to build the infrastructure itself," she stated at the auditorium of the Public Works and Housing Ministry in Jakarta on Monday.

Hence, the government-corporate body cooperation scheme emerges as a solution to bridging the gap in financing for infrastructure development, she emphasized.

Infrastructure is one of the indicators to attract investment in addition to manageable purchasing power and a stable economy, she remarked.

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In the past five years, the competitive and quality index of the country's infrastructure surpassed that of the Philippines and Vietnam owing to the hard work put into boosting infrastructure development over the period of time, she noted.

Evidently, Indonesia yet lags behind Malaysia and Singapore in terms of infrastructure development, she remarked.

In the subsequent five-year period, the government will boost the development of infrastructure comprising highways, clean water facilities, sanitation, ports, and telecommunications.

Indrawati lauded ministries, state institutions, and regional governments that had taken the initiative to develop infrastructure without excessively depending on the state and regional budgets but capitalizing on the government-corporate body cooperation scheme.

The minister further encouraged regional governments to drive economic growth to cross five percent in spite of the global economic slowdown.

"One of the ways to improve domestic economic resilience is by spurring the sources of economic growth," she pointed out.

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