Minister Basuki Leaks Three Steps To Build Infrastructure Without State Budget

PUPR Minister Basuki Hadimuljono. Photo: Doc. Antara

JAKARTA - Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono revealed steps to build infrastructure project sharing without relying on the costs of the state budget.

According to Basuki, the contribution of the APBN to build infrastructure is only around 30-40 percent, while the shortfall must be sought through financing schemes that can be collaborated with the private sector or BUMN.

There is one alternative financing that has now been successfully carried out by his party, such as the use of bailout funds for service providers for land acquisition for infrastructure development.

Then, there is a cross-subsidy auction scheme. For example, conducting a project auction with an offer of who can build the longest Trans Sumatra toll road, he will be the winner of the auction.

"So, we had auctioned the Semarang Batang and Serang-Panimbang toll roads, we were able to build 83 km in Sumatra," Basuki said at the 13th PT PII anniversary event in Jakarta, online, Wednesday, March 1.

Third, there is KPBU (Business Government Cooperation). In this scheme, later the government will pay installments to the implementing business entity for infrastructure development that is in accordance with the quality and/or criteria as determined in the KPBU Agreement.

"(The KPBU scheme) is the easiest, so it is continuously guarded by PT PII (Indonesian Infrastructure Guarantee) starting from the preparation of the project, not only for new development, but also for road maintenance," said Basuki.

Basuki even admitted that he had never asked the Ministry of Finance (Kemenkeu) for money related to infrastructure development.

"I never (asked for a budget) from him (Sri Mulyani), but if he didn't give me, yes, the president scolded him," he said.

According to Basuki, infrastructure development does not only rely on the state budget, but can cooperate with the private sector through a mutually beneficial financing scheme.

"So, I remind my friends who are implementers in the regions that they really have to innovate, not only the technology that innovates, but the financing too," he concluded.