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KADIN Breakthrough to Solve Inequality Transportation Development in Indonesia

by Sebastianus Epifany Wednesday, November 16, 2016 - 17:29

JAKARTA - Indonesian Chamber of Commerce and Industry (KADIN) noted that the development of transportation in Indonesia, is still unbalanced between the west and east. In fact, the contribution of transportation to Indonesia's gross domestic product to 85 percent concentrated in the western part of Indonesia.

Chairman of KADIN Indonesia Rosan P. Roslani explained that inequality transport infrastructure up until today is caused by a classic problem, which is the lack of funding, so the government needs to make a bold and a real breakthrough for optimization.

"Infrastructure development is a long-term project, although there have been special agency established by the government outside the banking sector, to facilitate the financing, but financing remains a classic problem," said Rosan in the national working meeting of the Chamber of Commerce in the tower CIMB Niaga in Jakarta, Wednesday, November 16, 2016, as reported from Viva.co.id.

The special agencies which referred by Rosan are PT Sarana Multi Infrastruktur (Persero) and PT Indonesia Infrastructure Finance (IIF). "I think these two agencies can be more encouraged. The infrastructure project requires huge funds, SMI and IIF is still very small. We expect the government to further strengthen the capital sector," he said.

As another breakthrough that could be done by the government in an effort to seek for infrastructure financing is by selling infrastructure assets for State Owned Enterprises (SOEs), which is ready made to be offered to private entrepreneurs, or securitization.

"Just sell the readymade infrastructure which owned by State-owned Enterprise (like the assets in) Jasa Marga, Pelindo. Sell the port, give it to the entrepreneur. I'm sure, very sure it salable," he said.

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