The state budget, in this case, provides Rp2,385 trillion, or 37 percent of the (funding) requirement
Jakarta (ANTARA) - Sources other than the State Revenue and Expenditure Budget will contribute to the Rp6,445 trillion of infrastructure funding requirements in the 2020-2024 National Medium-Term Development Plan, Finance Minister Sri Mulyani Indrawati stated.

"The state budget, in this case, provides Rp2,385 trillion, or 37 percent of the (funding) requirement," the minister stated during the signing of the master agreement between the Investment Management Agency (INA) with Hutama Karya and Waskita Toll Road here on Tuesday.

Indrawati remarked that state-owned enterprises and the private sector will play a vital role in pooling the necessary funding.


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For two years, the state budget's allocation had to be adjusted, as it was channeled to prioritize health issues, social assistance, and economic recovery efforts when the COVID-19 pandemic struck, Indrawati pointed out.

The minister urged one and all to maintain the good condition of the state budget, especially through fiscal reforms, which could be conducted by improving the taxation system as well as through non-tax state revenues and prudent and innovative funding aspects.

"The management of state finances will continue to be improved, including pushing for various innovations in supporting the role of SOEs and the private sector," she remarked.

The minister reminded state-owned enterprises to continue to increase their capacity in order to provide the best balance sheet leverage while concomitantly maintaining the company's financial sustainability.


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One of the crucial approaches is through asset optimization -- especially for existing infrastructure projects from state-owned enterprises -- by allocating funds through the Investment Management Agency rather than directly sourcing from the State Revenue.

The minister deemed the creation of INA as an important momentum through which Indonesia was developing creative financing by creating a credible platform to work with investors from several sources.

By employing a management system that followed international standards, Indonesia was expected to attract long-term equity investments, she remarked.

Such measure would greatly provide additional stability for Indonesia's development, as funding from the agency is not in the form of debt or short-term securities.

Minister Indrawati opined that infrastructure development was a vital aspect in terms of national economic advancement, as it would improve and boost productivity.

"Even with so many infrastructure developments, including toll roads, Indonesia's competitiveness rating is still relatively lower than ASEAN-5 countries," she pointed out.


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Translator: Agatha O V, Mecca Yumna
Editor: Fardah Assegaf
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