President Jokowi Invites PGGI To Support Infrastructure Development In Indonesia

President Joko Widodo while attending the side event of the Partnership for Global Infrastructure and Investment (PGII) G7 with partner countries on the sidelines of the G7 Summit series (ANTARA/HO-Biro Press of the Presidential Secretariat)

President Joko Widodo invited the collaboration initiative of G7 countries, Partnerships for Global Infrastructure and Investment (PGII), to work together and support infrastructure development in Indonesia through real investment in order to realize equity and welfare.

"PGII's support for infrastructure development in Indonesia is very important through concrete investment and other innovative financing. Let's collaborate for equal distribution and people's welfare," Jokowi said in a statement quoted by ANTARA, Saturday, May 20.

President Jokowi made this statement during the side event of the PGII G7 forum with partner countries at the Grand Prince Hotel, Hiroshima, Japan, Saturday, on the sidelines of the G7 Summit series.

The President explained earlier that infrastructure development in Indonesia was so centralized on the island of Java.

This practically resulted in the distribution of the population and economic activities in Indonesia being uneven.

"56 percent of the population is concentrated on the island of Java and 58 percent of economic activity is also concentrated on the island of Java," said Jokowi.

Therefore, President Jokowi emphasized that the Indonesian government is currently intensifying infrastructure development efforts outside Java, both in the form of ports and toll roads to suppress the inequality that occurs.

Efforts to equalize have also been realized through the plan to build the State Capital (IKN) of the Archipelago as a new capital city located on the island of Kalimantan and located in the midst of Indonesia.

"Including the construction of the new capital city of the archipelago (IKN), a forest and natural-based city that is 70 percent green area and 80 percent of its energy sources come from renewable energy," said Jokowi.

The Head of State stated that the development of basic infrastructure in IKN Nusantara is funded from the State Revenue and Expenditure Budget (APBN).

However, the President stressed that he would open up opportunities for funding from the private sector if the investment efficiency indicator or the internal rate of return (IRR) of the development was considered good.

"We will fund the infrastructure from the state budget, then also by SOEs, and if the IRR is good, we will give it to the private sector or investors," said Jokowi.

The President emphasized that IKN can be a form of Indonesia's transformation which is very open to investment and cooperation in various fields.

"This is an Indonesian transformation showcase that is very open to investment and cooperation, both in the transportation, health, technology, education, (and) tourism sector," he said.