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Alternative Infrastructure Financing Scheme from Government

by Sebastianus Epifany Wednesday, August 23, 2017 - 11:36

JAKARTA - Infrastructure development that is being intensively carried out by the government requires huge cost. Directorate General of Bina Marga Ministry of Public Works and Housing, Arie Setiadi Moerwanto said, there needs to be innovation in finding alternative sources of financing for infrastructure development in order to meet the National Medium Term Development Plan (RPJMN) 2015-2019.

"The government is only able to finance 50% of the infrastructure financing needs, so now Bina Marga continues to seek alternative financing through PPP / KPBU, Availability Payment (AP) and PRIM Grant (Provincial Road Improvement and Maintenance)," explained Arie as reported from kontan.co.id (22/8/2017).

Arie further explained, currently the total funding needs of infrastructure is 5.519 Trillion IDR. From that amount, APBN and APBD can only bear 2.760 trillion IDR, with a 40% APBN funding portion and a 10% APBD portion, resulting in a financing gap.

Therefore, an alternative financing scheme is required through the cooperation between the private sector and the state-owned enterprise (BUMN) which accounts for 30% or 1.655 Trillion IDR. In addition, it can be from loans, bonds and others as much as 20% or1.104 Trillion IDR.

 

 

(Rafidi Iqra)

 

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