Infrastructure Development Not Only The APBN, The Ministry Of PUPR CONTINUES To Galilate Creative Financing Schemes

Minister of PUPR Basuki Hadimuljono. (Photo: Doc. Antara)

JAKARTA - Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono revealed that creative infrastructure financing or Creative Infrastructure Financing (Creatiff) is a must to accelerate infrastructure development.

He said that there are many creative schemes for infrastructure financing. "There are so many infrastructure financing schemes that are developing and continuing to be explored, especially from the Directorate General of Infrastructure and Housing Financing to encourage and fill gaps in financing shortages in infrastructure development, especially for acceleration," he said, quoted by Antara, Thursday, December 1.

He said infrastructure development could not only be expected from the APBN, but also must involve investment.

"Even later in the State Capital (IKN) Nusantara APBN only around 20-30 percent, while others from investments from both government cooperation schemes and business entities (PPP) or pure investment," said Basuki.

The Ministry of PUPR plays a vital role in infrastructure development in the country. Infrastructure development can drive the economic growth of a country and be able to increase global competitiveness.

The government through the Ministry of PUPR has committed to realizing sustainable development goals (SDGs) 2030, which focuses on the goal of SDG 6, which ensures sustainable availability and management of clean water and sanitation for all, as well as the goal of SDG 11 which is to create urban areas and residential areas that are inclusive, safe, resilient and sustainable.

However, to realize the goals of SDG 6 and SDG 11, the government faces limited APBN. Infrastructure development requires a budget of IDR 2,058 trillion. Meanwhile, the 2020-2024 State Budget Capabilities are estimated to be only able to meet 30 percent of the total budget needs.

The rest must look for other creative financing schemes as alternatives to infrastructure financing by expanding cooperation coverage through the participation of the private sector in the development of resilient and sustainable infrastructure.

Creative financing is a solution that needs to be harmonized with sector characteristics, so that it is right on target and can be implemented.