Government Calls Private Involvement Important In Sustainable Infrastructure Development

Illustration (Photo: Doc. Antara)

JAKARTA – The government through the Ministry of Finance (Kemenkeu) stated that the COVID-19 pandemic has brought its own challenges in achieving the goals of sustainable infrastructure development in Indonesia, after previously being claimed to have moved quickly in the last five years.

Head of the Fiscal Policy Agency (BKF) of the Ministry of Finance, Febrio Kacaribu, said that private sector participation in infrastructure investment is very important to realize the ideals of national development.

"Indonesia has prepared several instruments and platforms to meet infrastructure needs, expand infrastructure social and economic spillovers to mitigate the impact of the pandemic and move towards emission-free development," he said in a press statement at the G20 meeting in Bali, Friday, July 15.

Febrio explained that the development of new domestic infrastructure financing sources, such as pension funds or carbon credits, is another priority to encourage long-term sustainable development.

"Achieving comprehensive reforms in the financial sector so that it benefits the economy in a more inclusive manner will require continued and sustained efforts and new forms of public-private dialogue, not only at the country level, but also across the G20," he stressed.

VOI noted that Indonesia needs funds of at least Rp. 6,445 trillion to build infrastructure until 2024. Meanwhile, the state budget is said to only be able to cover the amount of Rp2,385 trillion or about 37 percent of the total needs.

This was stated by the Minister of Finance (Menkeu) Sri Mulyani to the media crew some time ago.

"So it is clear that in order to continue development, it is not possible to continue to rely on the availability of APBN funds," said the Minister of Finance through a virtual channel, Thursday, April 14.