JAKARTA - The Ministry of Public Works (PU) requires a national infrastructure development budget in the 2025-2029 period to reach IDR 1,905 trillion.
However, there is still a financing shortage of IDR 753 trillion that needs to be met, especially through investment participation from the private sector.
Minister of Public Works, Dody Hanggodo, said that the projection refers to the development target in the 2025-2029 National Medium-Term Development Plan (RPJMN).
According to Dody, the government's limited fiscal capacity is a major challenge in closing the financing gap.
"Proyeksi kebutuhan investasi infrastruktur pada periode RPJMN 2025-2029 mencapai Rp1.905 triliun. Dengan ketembatan fiskal pada hari ini, baik itu APBN maupun APBD, diperkirakan masih terdapat funding gap sebesar Rp753 triliun," ujar Dody dalam sambutannya pada pembukaan acara CreatIFF 2025 di Auditorium Kementerian PU, Jakarta, Selasa, 3 Juni.
In comparison, in the 2020-2024 period, infrastructure development through the Government and Business Entity Cooperation (KPBU) scheme and assignments managed to contribute Rp440 trillion or around 21.4 percent of the total needs at that time reached Rp2,058 trillion.
In facing future challenges, the government encourages the involvement of private parties in infrastructure financing schemes.
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Therefore, the 2025 CreatIFF event is one of the steps taken by the Ministry of Public Works in capturing collaboration between business actors, governments and financial institutions in order to formulate creative solutions to cover the lack of development funds.
"I will continue to encourage all levels of the Ministry of Public Works, especially the Directorate General of Infrastructure Financing to continue to review and develop various creative financing schemes, be it KPBU, blended financing, asset securitization and other potential schemes," said Dody.
Furthermore, Dody said, the importance of creating an attractive financing climate for investors.
"We need to develop an inclusive, conducive, transparent and accountable financing ecosystem to attract private, both domestic and international investors as well as other stakeholders to be able and willing to join hands together," he explained.
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