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JAKARTA - How much money is needed to build all infrastructure in Indonesia from 2020 to 2024? The answer from the Director General of State Assets of the Ministry of Finance Rionald Silaban shocked him.

He said infrastructure development needed funds of Rp6,445 trillion.

"In order to pursue the growth of gross domestic product (GDP) in the 2020-2024 National Medium-Term Development Plan, we know that infrastructure development requires large funding," said Rionald Silaban during the Socialization of the Job Creation Law related to the Investment Management Agency in Jakarta, Wednesday, September 5.

Rio said the state budget (APBN) was only able to meet 37 percent of the total infrastructure funding needs.

Furthermore, state-owned enterprises (BUMN) will fill the infrastructure financing funding needs with a portion of 21 percent.

Meanwhile, the 42 percent portion of the total infrastructure development funding needs from 2020 to 2024 will be met by the private sector.

"The state budget is not enough to fulfill all of that. The state budget is only around 37 percent and the state-owned company is 21 percent, so we hope that the private sector can fulfill it," he said.

According to Rio, infrastructure development is very important to optimize other potentials that Indonesia has, namely good economic growth and a large population.

He explained that Indonesia's economic growth was consistently above five percent during the period 2016 to 2022, except when experiencing the COVID-19 pandemic crisis.

Although the Indonesian economy had contracted during the COVID-19 pandemic, currently GDP is real, it has returned to pre-pandemic levels because it is supported by consumption, investment, export, and manufacturing.

The government has also dared to target economic growth for next year to reach 5.3 percent, signaling that the recovery period in Indonesia is increasingly accelerated.

Then, this infrastructure development will optimize as many as 165 million middle class and main middle class which has the potential as a motor of economic growth.

Meanwhile, from the potential of domestic projects, the potential for government cooperation projects with infrastructure business entities (KPBU) in the fields of public work and housing throughout 2020-2024 reached Rp541 trillion.


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