Sri Mulyani's Subordinates Called Indonesia Need IDR 6,500 Trillion To Build Infrastructure Until 2024, The State Budget Can Only Fulfill 42 Percent

Illustration. (Photo: Doc. Antara)

JAKARTA - The Director-General of Financing and Risk Management at the Ministry of Finance (DJPPR Kemenkeu), Luky Alfirman, said Indonesia needed funds of around IDR 6,500 trillion to build infrastructure until 2024.

Of these funding needs, the State Revenue and Expenditure Budget (APBN) can only meet 42 percent, while the rest will come from State-Owned Enterprises (BUMN) and the private sector.

"Therefore, financing is one way to reduce these costs. How can we design the financing in such a way", said Luky in the 23rd T20 Edition of the Infrastructure Roundtable (IIR), quoted from Antara, Friday, July 8.

He explained that the current government continues to invite financing from the private sector. This is in line with the discussion in the G20 Presidency in Indonesia, namely increasing private sector participation because the government cannot bear all development costs alone.

Investing in infrastructure is a long-term investment, so there must be certainty in the projects being invested.

Therefore, Luky believes that his party continues to try to provide certainty by managing the existing risks so that investors, especially domestic ones, are interested in investing their capital in an infrastructure project.

"We designed this risk in such a way, how can we minimize it because it is associated with the price we have to pay later", he said.

As for foreign investors, he said that usually prospective investors will tend to look at the political conditions of Indonesia's economic prospects before deciding to invest in an infrastructure project in the country.

Thus, he said, the stability of political conditions and improvement of the domestic economy is very important to attract investment from abroad.