Infrastructure development can strengthen economy: Finance Minister

Infrastructure development can strengthen economy: Finance Minister

Minister of Finance Sri Mulyani Indrawati while attending the online D20-LTIC High-Level International Conference here on Friday (September 24, 2021). ANTARA/Agatha Olivia/FR.

Connecting people in various regions will be our focus, so that productivity can improve and competitiveness can become higher
Jakarta (ANTARA) - Finance Minister Sri Mulyani Indrawati is optimistic that infrastructure development would support recovery of the pandemic-battered economy to become stronger.

"To this end, it is important to direct infrastructure investment toward sustainable development," Indrawati stated while attending the online D20-LTIC High-Level International Conference here on Friday.

The minister opined that investment in sustainable infrastructure can yield better results for the private sector, government, and financial institutions.

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Through sustainable investment, a balance can be struck in achieving economic, social, and environmental recovery for the entire country.

The finance minister noted that infrastructure investment will be the focus for Indonesia's G20 Presidency in 2022.

"Connecting people in various regions will be our focus, so that productivity can improve and competitiveness can become higher," she asserted.

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Indrawati said that budget allocation for infrastructure development in the 2021 state budget had reached Rp470 trillion.

However, infrastructure funding can no longer be done by the government alone, so it was necessary for the private sector to become more involved.

The minister highlighted that the current condition of the private finance sector made them capable of doing this, though the challenges lay in opening financing for sustainable infrastructure.

During the conference, Indrawati also remarked that G20 members had issued fiscal stimulus worth US$16 trillion to mitigate the impacts of COVID-19 since January 2021 until now.

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For emerging market countries that are part of the G20, the stimulus was specifically for workers impacted by COVID-19 and infrastructure investment, she expounded.

The Global Infrastructure Hub analysis shows that every government in the G20 is committed, so that infrastructure investment is part of the COVID-19 stimulus.

Indrawati opined that infrastructure investment can ensure emerging market countries and poor nations become part of the global economic recovery. 

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