According to the ministry's Director of Government Support and Infrastructure Financing Management, Brahmantio Isdijoso, here on Thursday, the PPP scheme is driven by the National Development Planning Ministry (Bappenas), Finance Ministry, and Institution of Engineers Indonesia (PII).
"In the last 10 years, the PPP scheme, which is driven by Bappenas, the Finance Ministry, and PII, have mobilized around Rp300 trillion of private funds into infrastructure," Isdijoso remarked during the 2023 Movement Towards Smart City event.
He said that PPP is an alternative to infrastructure financing in the regions, in case regional funding is not sufficient to build the infrastructure needed by the community.
The PPP becomes a solution to overcome the financing gap in regions, so that infrastructure can continue to develop and meet the needs of local communities.
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The PPP projects related to the smart city movement include the construction of street lighting in Madiun District and the Palapa Ring and satellite to strengthen internet network.
"Infrastructure projects in collaboration with PPP are the government's obligation. The government does not transfer them to the private sector. They (the projects) still belong to the government, so it is not privatization," he stated.
The PPP scheme can be used to improve services for the community while supporting the smart city movement.
Earlier, the ministry's Director General of State Assets, Rionald Silaban, stated that infrastructure development in Indonesia between 2020 and 2024 requires funds of Rp6,445 trillion (US$415 million).
"We know infrastructure development requires large funding in order to realize gross domestic product (GDP) growth target in the 2020-2024 National Medium-Term Development Plan," he remarked.
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Translator: Martha S, Kenzu
Editor: Yuni Arisandy Sinaga
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