Domestic connectivity is key for Indonesia to advance (its) economic growth in the future.Jakarta (ANTARA) - Finding creative and innovative sources of funding for advancing infrastructure development in Indonesia has become a challenge, deputy for economic affairs at the National Development and Planning (PPN) Ministry, Amalia Adininggar Widyasanti, has said.
Speaking at the B20-G20 dialogue on the finance and infrastructure task force, which was accessed from here on Thursday, she informed that obtaining funding for infrastructure development from the right source through innovative financing was a directive from President Joko Widodo (Jokowi).
This is because creative financing is expected to draw investors to contribute to infrastructure development in Indonesia.
B20 is an outreach group of the G20 that represents the international business community, one of the important actors encouraging inclusive, resilient, and sustainable global economic growth.
The government will continue to encourage creative and innovative financing through the public-private partnership scheme, which includes blended financing, the deputy said.
In the 2015–2021 period, the scheme helped raise more than US$17.7 billion (Rp266.56 trillion) for funding various infrastructure projects in Indonesia.
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Currently, there are 45 projects being carried out under the public private partnership scheme coordinated by the Public Works and Public Housing (PUPR) Ministry, which is responsible for allocating the budget for the projects.
The projects include the development of public housing, power plants, sanitation, roads, and ports in many regions of Indonesia.
The number of implemented projects has increased from the initial 25 projects, Widyasanti noted.
It is estimated that there will be 26 new projects in 2022, including the ones undertaken for the development of Indonesia’s future capital (IKN), Nusantara, in East Kalimantan province, she added.
An example of the most successful projects conducted through the public-private partnership scheme is the development of the SATRIA satellite, which will seek to expand Internet coverage in Indonesia, she said.
"The project costs about US$545 million (Rp8.2 trillion)," she informed.
The deputy said she hopes that alternative funding schemes will continue to be developed for funding infrastructure projects that aim to improve domestic connectivity.
"Domestic connectivity is key for Indonesia to advance (its) economic growth in the future," she added.
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Translator: Astrid Habibah, Uyu Liman
Editor: Suharto
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