REPUBLIKA.CO.ID, JAKARTA -- Finance Minister Sri Mulyani Indrawati dismissed opinion that infrastructure development projects in Indonesia are dependent on foreign debt, as the government has various funding alternatives. She stated that the government has developed funding concepts for infrastructure projects based on the public private partnership (KBPU).
She took the example of infrastructure guarantee concept to fund 22 infrastructure projects worth Rp200 trillion.
"We already have various funding innovation from these instruments," she said while speaking in front of market operators and investors in a forum here on Thursday.
Other funding concepts under the KPBU scheme are the project development fund for 15 projects worth Rp54 trillion, viability gap fund which is applied in three projects worth Rp1.07 trillion, and availability payment in nine projects worth Rp24.8 trillion.
"We have good track record of this innovative funding. We also use special vehicle institution to facilitate the funding such as PT Sarana Multi Infrastructure (SMI) and PT Penjaminan Infrastructure Indonesia (PII)," she elaborated.
SMI and PII would bridge cooperation between the government and private sector under the KPBU scheme, in order to assure the private sector on the government's credibility to develop infrastructure project.
"So there will be no more argument that deals with the government, especially the Finance Ministry," she remarked.
According to her, the government would need to expand the funding sources due to huge demand for infrastructure projects in the country.
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