Infrastructure development is the key to driving our long-term economic growth. We believe in its multiplier effectJakarta (ANTARA) - Infrastructure development is the key to boosting economic growth in the long term since it has a high multiplier effect, Deputy Minister of Finance Suahasil Nazara stated.
“Infrastructure development is the key to driving our long-term economic growth. We believe in its multiplier effect," Nazara remarked at the 2022 Infrastructure Webinar, Wednesday.
To this end, the deputy minister also stated that the government will build infrastructures that encourage mobility, productivity, connectivity, accessibility, and sustainability for the subsequent generations.
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Nazara emphasized that infrastructure development continues to be encouraged amid the COVID-19 pandemic since the government is keen to improve the people's welfare in order to help them extricate themselves from the middle-income trap.
"We have to think about the details in continuing infrastructure development amid the pandemic," he affirmed.
Taking into account the importance of infrastructure development, Nazara affirmed that the government had provided support, such as State Equity Participation (PMN), to State-Owned Enterprises (SOEs).
Moreover, the government provides support to ministries/agencies (K/L) through capital, bureaucratic, and personnel expenditures to ensure that K/Ls can participate in developing infrastructure.
In addition, the government applies the Government and Business Entity Cooperation (PPP) scheme, so that infrastructure development funds not only come from the government but also the private sector.
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This PPP scheme is a creative form of financing based on the limited availability of the State-Budget (APBN). Through this scheme, the government strives to maintain its financial health level while continuing infrastructure development.
Furthermore, the central government had issued a loan program to the regions in an effort to recover the national economy on account of the fact that building infrastructure was also one of the responsibilities of the local government.
"Since 2020, in the context of National Economic Recovery (PEN), the government has issued regional loans to expedite development in regions," he noted.
In terms of loan programs to the regions, the government had appointed PT Sarana Multi Infrastruktur (SMI) to encourage funding to the regions while accelerating infrastructure development.
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The government also urged the State Asset Management Agency (LMAN) to be responsible for the land acquisition process for infrastructure development.
From 2016 to 2021, the state budget had provided support for land acquisition through LMAN amounting to Rp105.26 trillion and was reduced by Rp28.84 trillion in 2022.
"This is a large figure that shows the government's commitment to accelerating infrastructure development," Nazara added.
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Translator: Astrid Faidlatul H, Resinta S
Editor: Fardah Assegaf
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