The Government Turns Its Brain To Find Alternative Financing For Infrastructure 3 BOP And 8 KEK

Illustration (Photo: Doc. Antara)

JAKARTA - Minister of Tourism and Creative Economy (Menparekraf) Sandiaga Uno stated that the government is developing an alternative infrastructure financing scheme strategy in three Tourism Authority Boards (BOP) and eight Tourism Special Economic Zones (KEK) if the investment targets that have been set have not been achieved.

This is done through five financing instruments to reduce the burden of equity and State Capital Participation (PMN) while pursuing the target of infrastructure projects that must be completed by 2023-2024.

“The five financing instruments in question are the Government and Business Entity Cooperation (PPP) scheme, the Limited Management Rights (HPT) scheme, the Sovereign Wealth Fund (SWF) which has been mandated by the Job Creation Act, the Integrated Funding Platform, and the Land Value Capture scheme. (LVC) or the management of the acquisition of an increase in the value of the area," said Sandiaga Uno as reported by ANTARA, Tuesday, August 2.

PPP is a scheme for providing and financing infrastructure based on cooperation between the government and business/private entities. Meanwhile, HPT is the optimization of State-Owned Goods (BMN) and/or BUMN assets in order to improve the operational function of BMN in order to obtain funding for infrastructure provision.

While the SWF, the International Monetary Fund (IMF) defines it as a special investment fund created or owned by the government to control foreign assets for long-term purposes.

The next scheme is an integrated funding platform or an integrated funding cooperation platform.

Finally, the LVC scheme is defined as a policy of utilizing the increase in land value resulting from investments, activities, and government policies in an area using two application bases, tax-based LVC and development-based LVC.

"The implementation of the LVC scheme in Indonesia is expected to bring various economic benefits, including increasing Regional Original Income (PAD) through regional taxes and levies, developing more organized urban areas, controlling regional economic growth, and carrying out economic equality in urban areas," said Sandiaga Uno.

Until now, the investment and financing needs in eight Tourism SEZs have been recorded at Rp 226.79 trillion and in three BOPs worth Rp 6.7 trillion.

Based on data from the Secretariat of the National Council of SEZs, it was recorded that the investment needs of the Morotai SEZ in North Maluku amounted to IDR 30.44 trillion, the Likupang SEZ in North Sulawesi IDR 5 trillion, the Singhasari SEZ in Malang, East Java IDR 11.92 trillion, the Tanjung Lesung SEZ in Banten IDR 92.40 trillion, then the Tanjung Kelayang SEZ in Belitung Regency, Bangka Belitung Islands Rp. 9 trillion.

Then, the Mandalika SEZ in Central Lombok, West Nusa Tenggara Rp. 28.63 trillion, the Nongsa SEZ in Batam, Riau Islands, Rp. 16 trillion, and the Lido SEZ in Bogor Regency, West Java, Rp. 33.40 trillion.

Meanwhile, investment and financing needs in the three BOPs are Borobudur in Magelang, Central Java, amounting to Rp. 1.77 trillion, Labuan Bajo in East Nusa Tenggara Rp. 2.84 trillion, and Lake Toba in North Sumatra Rp. 2.09 trillion.

"Indeed, the realization of investment has not been too massive, but some have also begun to show positive results such as the Pullman Hotel in Mandalika with an investment value of Rp. 658 billion which will be inaugurated in operation in August 2022. We continue to encourage investors to invest in financing infrastructure projects, especially in the industrial sector. tourism and the creative economy," said Sandiaga Uno.

​​​​​Previously, the government has held an investment and financing promotion in front of investors on July 28, 2022 in Jakarta.

Then there will be an "Investment Forum of five Super Priority Tourism Destinations (DPSP)" in Labuan Bajo in September 2022 in collaboration with the Ministry of Investment.