Being A National Priority, Sri Mulyani Explains The Importance Of Infrastructure Development

Illustration. (Photo: Doc. Ministry of Finance)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani Indrawati said that infrastructure development has the potential to contribute to a stronger economic recovery.

According to him, the current investment in the infrastructure sector is a form of national economic, environmental and social development so that the benefits can continue to be felt for decades to come.

"Therefore, it is very important that when we make infrastructure investments, we do so within the framework of sustainable development," he said as quoted by the official website, Monday, September 27.

The Minister of Finance added that infrastructure development is a national priority in order to increase public access to basic services as well as increase productivity and competitiveness.

"The government has allocated a budget of IDR 417 trillion for infrastructure in 2021 which is expected to accelerate development mainly in 3T (underdeveloped, frontier, and outermost)," he said.

The state treasurer also conveyed a number of challenges faced in realizing this national priority program, such as changing the way of thinking about cooperation with the private sector which is often seen from a narrow perspective.

“The government guarantees to convince the private sector that the government will be responsible for certain project risks. This guarantee certainly increases the bankability of a project," he said.

Then, the perception of developing country risk requires international support from developed countries and international development partners.

Lastly, strengthening collaboration across stakeholders, including developed and developing countries, banking financial institutions, and infrastructure investors is needed to lead to sustainable global development.

"Indonesia wants to attract private investment in infrastructure, and this also offers great opportunities for global private sector companies to expand their market," concluded Minister of Finance Sri Mulyani.