Riau Governor Proposes IDR 4 Trillion Budget For Infrastructure And MSMEs

PHOTO VIA BETWEEN

PEKANBARU - The Riau Provincial Government submitted a proposal for infrastructure development funding and MSME financing of IDR 4 trillion to the Ministry of National Development Planning/Bappenas to obtain a grant from the United States (US) government through the Millennium Challenge Corporation (MCC).

“We have held a meeting to discuss the project to be obtained, grant funding from the MCC Compact-2 program. Riau is one of the five program locations in Indonesia," said Secretary of the Ministry of National Development Planning/Main Secretary of Bappenas Himawan Hariyoga Djojokusumo after holding a meeting with Riau Governor Syamsuar, at the Riau Governor's office quoted by Antara, Tuesday, October 5.

Himawan appreciated the commitment from the Governor of Riau to oversee it right from the start, so that what was proposed met the compact-2 criteria from the United States.

"This program has the theme of increasing productivity through financing infrastructure projects as well as those related to MSMEs," he said.

From the submissions submitted by the Governor of Riau, said Himawan, it is dominant for infrastructure financing, especially in Riau Province, there are many developing industries that can improve the community's economy. Then there is also the program proposed by the Riau Provincial Government that is not compatible with the MCC program, so it is more suitable to be proposed for other programs.

"Incidentally, Riau Province focuses a lot on infrastructure financing, but infrastructure is built for community economic activities. For example, industrial areas and a number of criteria are expected to be met so that later Riau Province can get an allocation of adequate funding support," he said.

Even so, Himawan has not been able to confirm how much the Riau Provincial Government will receive from MCC, because there will be feasibility studies, surveys, basic research, environmental and social assessments, infrastructure and MSME financing, and other activities that can be a strong basis for providing the grant.

Himawan explained that although infrastructure, in the process and planning it involves broad stakeholders and with an emphasis on MSMEs, women's groups, and the private sector. "Because the financing support will not be 100 percent, but it must be in the 'blender finance' to enter other funding sources," he said.

After being approved by the MCC and the government, through Bapenas it will submit the prepared budget for Riau. Each program that is run is adjusted to the existing budget in the form of grants. Then the grant will be managed by Bappenas, including infrastructure development and the assets built will belong to the region.

"This grant is managed by Bappenas, later if it runs, state property will be donated to the regions, there will be a handover of state property assets, yes, from the Americans to Indonesia and finally to the regions," he said.

Meanwhile, the Governor of Riau, Syamsuar, hopes that the proposal submitted by the Riau Provincial Government can be accepted by the MCC. So that later it can be used for infrastructure development in accordance with the program in MCC Compact-2. Through this program in improving the economy in Riau.

"This aid program is expected to improve Riau's welfare as well as fix MSMEs, accelerate poverty alleviation and fulfill gender equality. In addition, reducing poverty, increasing the economy and the growth of small businesses," said Syamsuar.

After holding a meeting with the Governor of Riau, the team from PPN/Bappenas and their entourage immediately visited the industrial city in Dumai City, including the Dumai Port and Roro Dumai Ship.