Revealed! From IDR 6,445 Trillion Funds Needed For Infrastructure Development Until 2024, The Government Can Only Provide IDR 2,385 Trillion From The National Budget

Illustration (Photo: Doc. Antara)

JAKARTA – The government, through the Ministry of Finance (Kemenkeu), is currently facing a challenge in accelerating infrastructure development.

The Director General of Financing and Risk Management at the Ministry of Finance Luky Alfirman said this condition had implications for the government's ability to allocate the budget.

"This also creates limitations in terms of the state budget. Our current calculation is for the period from 2022 to 2024, the government can only support around 37 percent," he said through a virtual channel in a workshop entitled Implementation of State Financial Risk Management for Guaranteeing SOEs in the Framework of Accelerating Infrastructure Development, Tuesday, June 14.

According to Luky, this challenge creates a distinct advantage for the corporate sector, whether owned by the government or the private sector, to be involved in infrastructure development activities.

"We really hope to be supported from the role of the private sector and also SOEs," he said.

Luky added, in difficult situations, new ways will usually emerge to be able to realize strategic targets. One of them is through non-conventional financing schemes.

"Well, the large funding needs encourage the government to prepare alternative schemes that are innovative and creative," he said.

Furthermore, he also revealed that creative corporate financing has a very important role to participate in infrastructure development through the assignment of SOEs as well as collaboration between the government and business entities.

"BUMN as a corporation that is part of the government of course has the flexibility to explore various funding and in the process of infrastructure development," he said.

In a VOI note, the Minister of Finance (Menkeu) Sri Mulyani said that based on the National Long-Term Development Plan (RPJPN) 2020-2024, it was stated that the need for infrastructure funds nationally was Rp. 6,445 trillion. Of this amount, the ability of the State Budget to realize this is only around Rp.2,385 trillion.

"So it is clear that to continue development it is not possible to continue to rely on the availability of APBN funds," said Minister of Finance Sri Mulyani some time ago.