Infrastructure Development Needs A Budget Of IDR 6,445 Trillion, Government Needs A PPP Scheme As Alternative Financing

JAKARTA - Director of Development Development of Development Funding of the Ministry of National Development Planning/Bappenas Sri Bagus Guritno said alternative financing schemes through cooperation between the government and business entities (KPBU) were needed to encourage sustainable infrastructure development in Indonesia.

In the "Sharing Session related to the Implementation of the KPBU Financing Scheme in the Road Information Infrastructure Project" quoted by Antara, Monday, November 7, he said that the state revenue and expenditure budget (APBN) could not fully finance the needs of sustainable infrastructure development, so alternative financing was needed.

He explained that the government needed infrastructure development financing of IDR 6,445 trillion to pursue the growth target of gross domestic product (GDP) in the 2020-2024 National Medium-Term Development Plan (RPJMN).

Meanwhile, the State Budget will only meet infrastructure financing needs of 37 percent, SOEs meet 21 percent, and the private sector as much as 42 percent.

"The ability of the state budget is only 37 percent. With that, it is necessary to innovate through an alternative financing scheme, one of which is with the PPP," said Sri Bagus Guritno.

In addition, he conveyed that the alternative financing scheme through KPBU would increase the domestic investment climate, so as to encourage national economic growth.

On the same occasion, the Business Director of PT Penjaminan Infrastruktur Indonesia (PII) Andre Permana said that KPBU has guaranteed projects worth more than Rp. 300 trillion to date, from the existing potential of Rp. 541.65 trillion for public and housing work infrastructure throughout 2020-2024.

According to him, the alternative financing scheme through KPBU is an unavoidable choice in efforts to develop sustainable infrastructure in the country, amidst the uncertainty of the global economy.