Entrepreneurs Talk At G20 Forum: Building Infrastructure Can Have Low Margin, But High Financing Gap

Illustration (Photo: National Committee of the Indonesian G20 Presidency)

JAKARTA – International business actors who are members of The Business 20 (B20) revealed a number of challenges faced in realizing the ideals of comprehensive development. One of them is the most pressing infrastructure financing problem, especially the infrastructure financing gap.

"In addition, we see that there is a higher level of risk and a lack of affordable financing in developing countries," said B20 Indonesia Chair Shinta Kamdani at the G20 side event in Bali this week.

According to Shinta, another obstacle that is often encountered is lower investment returns for green projects. "This then has an impact on the lack of digital connectivity in developing countries," he said.

This entrepreneur from the Sahid Group group noted that the current global infrastructure financing gap is increasing. "We estimate the financing gap to be at 10.6 trillion US dollars among G20 countries and 14.9 trillion US dollars worldwide in 2040," he said.

For information, B20 is an outreach group from the G20 that represents the international business community. Through the presence of business people from around the world, B20 reflects the role of the private sector as a driver of strong, sustainable and balanced economic growth.

B20 held a number of meetings aimed at continuing to develop recommendations and produce relevant commitments from world business leaders and business organizations to deal with important and significant global issues.

"The investment capacity between countries is also increasingly unequal and this needs to be our common concern," concluded Shinta.