“Building infrastructure needs also to consider the preservation of the environment, as well as addressing the issue of the environment itself,” he expounded at the International Conference on Infrastructure (ICI), which was followed online from Jakarta on Thursday.
According to the minister, sustainable infrastructure development is not merely rhetoric. It can serve as a bridge between nations, a foundation for collective resilience, and a real manifestation of shared responsibility, he said.
This shared responsibility is reflected in two projects launched by President Prabowo Subianto’s government, he said.
The first project involves the construction of a giant sea wall along the entire north coast of Java to prevent coastal inundation. The second is a waste management project to ensure a cleaner environment.
Nonetheless, how related parties can fund the development of sustainable infrastructure is still a big question, Sugiono said.
Indonesia needs around US$280 billion (around Rp4,545 trillion) by 2030 for climate action, but only 30 percent of this can be sourced through public funding, he pointed out.
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To address this, the Indonesian government has established Danantara, an investment management agency, to consolidate all government assets, he said.
Danantara has been tasked with managing and optimizing state investments, especially those of state-owned enterprises (BUMN), more efficiently with the goal of supporting economic growth.
The government is also simplifying regulations, increasing ease of doing business, and delivering on its commitment to strengthening legal certainty and transparency to support the investment process in Indonesia, he added.
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Reporter: Cindy Frishanti Octavia
Editor: Rahmad Nasution
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