"Creative Infrastructure Financing (Creatiff) is mandatory to accelerate infrastructure development in Indonesia," the minister remarked in Jakarta, Thursday.
Hadimuljono drew attention to several creative schemes for infrastructure financing.
"There are many infrastructure financing schemes to be explored, especially from the Directorate General of Infrastructure and Housing Financing, to encourage and fill gaps in financing shortages in infrastructure development, especially for acceleration," he stated.
Hadimuljono noted that infrastructure development could not only be expected to occur from the state budget but also involvement from investment.
"Even later, only use 20-30 percent of the state budget will be used in the new capital city (IKN) Nusantara, while the rest will come from investment either from the government and business entity cooperation scheme (PPP) or pure investment," he remarked.
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He stated that the PUPR Ministry played a vital role in infrastructure development in the country. Infrastructure development can drive a country's economic growth and increase global competitiveness.
The ministry has committed to realizing the 2030 Sustainable Development Goals (SDGs) that focused on the sixth goal of SDGs -- ensuring the availability and sustainable management of clean water and sanitation for all -- as well as the 11th SDG goal by realizing cities and areas that are inclusive, safe, resilient, and sustainable.
However, to realize the goals of SDG 6 and SDG 11, the government faces state budget limitations. Infrastructure development requires a budget of Rp2,058 trillion, while the 2020-2024 state budget is estimated to only be able to meet 30 percent of the financing of the total budget requirement.
Hadimuljono noted that the rest should be obtained for other creative financing schemes as an alternative to infrastructure financing by expanding the scope of cooperation through private sector participation in the development of resilient and sustainable infrastructure.
He also noted that creative financing is a solution that must be aligned with the characteristics of related sectors to achieve the target.
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Translator: Aji Cakti, Resinta S
Editor: Suharto
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