At The ASEAN Forum, Sri Mulyani Reveals 3 Important Points Of Sustainable Infrastructure Development

Minister of Finance Sri Mulyani (Photo: Doc. Antara)

Minister of Finance (Menkeu) Sri Mulyani had the opportunity to become one of the keynote speakers in the Promotion Sustainable Infrastructure Development dialogue in the ASEAN Finance Ministers and Central Bank Government Meeting (AFMGM) agenda series, Thursday, August 24.

In her explanation, Sri Mulyani revealed, if there are three important things for infrastructure development.

The first is a supporting environment. This is related to policies. If you can design the right policies, you will be able to attract the right capital and realize the infrastructure," he said.

According to him, the second important point is the right pipeline.

He said infrastructure is important. However, the most crucial thing is the matter of design and planning steps.

This is the most important problem faced by many countries in terms of creating and building the right infrastructure channels. You can identify that we need clean water, roads, electricity or even telecommunication ports, but usually this requires a lot of things. A number of preparations, especially considering environmental aspects, social aspects, and also the issue of risk of governance," he said.

The third point includes collaboration between stakeholders in the ecosystem. It is stated that infrastructure development usually does not rely on just one source of financing.

Funding diversification is also needed, whether it comes from public funds (APBN), the private sector, multilateral, bilateral, or even loans.

So there really needs to be collaboration, which does not increase transaction costs, but simplifies the process. So that collaboration in the ecosystem can really determine what kind of process is considered good governance, but at the same time it is also quite efficient to be carried out," he asserted.

On this occasion, the state treasurer also discussed the efforts of the State Budget as an accelerator for the construction of the State Capital in Kalimantan.

Sri Mulyani said that fiscal instruments functioned as catalysts in attracting further investment.

"Indonesia is also building a new capital city in Kalimantan, many of which need public funds (APBN) first so that we can build the infrastructure that is needed before being able to attract the private sector," he concluded.