OJK: Bond Market Helps Infrastructure Funding
10 March 2014 12:42 WIB
TEMPO.CO, Jakarta - The Indonesian Financial Services Authority (FSA) is collaborating with Bank Indonesia (BI), the Finance Ministry and the Self-Regulation Organization (SRO) to develop the domestic bond market. Bonds will be available in the form of government securities, corporate bonds and municipal bonds, said OJK's deputy chairman the board of commissioners Waluyanto last weekend.
Rahmat said the collaboration will encourage the development of domestic investment-based bond market as a long-term financing instrument in building infrastructure.
Bonds, he said, is also needed to assist the development of non-financial bank industries--especially insurance and pension funds, which have long-term obligations. To this date, the provision of long-term instruments for the insurance industry and pension funds is still low, due to an under-developed corporate bond market.
Hediyanto W. Husaini, chief of the Construction Development Board, said that from 2010 Indonesia's need for infrastructure investment has reached Rp1,923.7 billion. Of the total budget, the government provide Rp1,870.9 trillion.
University of Indonesia economist Lana Soelistianingsih said that the government should not hesitate to increase debt by issuing debt securities in the form of infrastructure-based bonds.
"Additionally, the problems in licensing and bureaucracy must be quickly resolved so that investors can easily invest in our infrastructure sector," she said.
RR. ARIYANI | ALI HIDAYAT