Minister Of Public Works Invites Foreign Investors To Build Infrastructure Due To Lack Of Budget

Minister of Public Works Dody Hanggodo (photo: dock. VOI)

JAKARTA - The Indonesian government through the Ministry of Public Works (PU) invites local and foreign investors to build infrastructure in Indonesia through a cooperation scheme between the government and business entities (KPBU).

The scheme is believed to be a strategic solution to overcome the limitations of the state budget while accelerating the development of quality infrastructure.

It is known that the remaining budget ceiling for the Ministry of Public Works for the 2025 fiscal year is IDR 29.57 trillion.

This is the impact of the existence of budget efficiency of IDR 81.38 trillion from the total initial ceiling of IDR 110.95 trillion.

PU Minister Dody Hanggodo emphasized that development should not be stopped due to funding constraints. Collaboration with investors is expected to ensure that infrastructure development runs optimally.

"According to the President's (Prabowo Subianto) directive, we continue to encourage investment through the KPBU scheme so that development continues to run optimally. Collaboration with the private sector allows strategic infrastructure projects to be realized more quickly and efficiently," said Dody in his official statement, Monday, February 10.

The Ministry of Public Works targets infrastructure development of IDR 544.48 trillion in the period 2025-2029 through the KPBU scheme. The plan includes 11 water resource projects, 23 toll road and bridge projects and 11 residential projects.

By involving the private sector, the government hopes that these projects can be realized more optimally, both in terms of funding and implementation efficiency.

Through this scheme, the government provides an opportunity for the business world to contribute to infrastructure development while still prioritizing benefits for the community.

A more flexible model of financing allows projects to run more effectively, while the government remains in the role of regulators and supervisors to ensure the quality and sustainability of development.

The government prioritizes investment in the construction of dams, reservoirs, toll roads and bridges as part of the development of national infrastructure.

In addition to strengthening water resistance and increasing connectivity, these projects are also expected to have a significant economic impact.

" Dams and reservoirs contribute to food and energy security, while toll roads accelerate logistics distribution and increase economic competitiveness," said Dody.

The government is optimistic that with the increase in investment and funding, the infrastructure sector in the country will continue to grow. This is to support economic growth and improve people's welfare.

Apart from being a funding solution, the KPBU scheme is also expected to encourage innovation and improve national workforce skills, both from soft-skill and hard-skill aspects.

"With a strong synergy between the government and the business world, we are optimistic that infrastructure development will be more qualified and increase Indonesia's competitiveness at the global level," concluded Dody.