Infrastructure Sector Needs Rp6,000 Trillion Investment
8 October 2014 17:16 WIB
TEMPO.CO, Jakarta - To pursue economic growth, Indonesia needs massive investment in the infrastructure sector, analyst says. To achieve an economic growth of seven percent of GDP over the next five years, the infrastructure sector needs an investment of Rp6,000 trillion.
Kuntoro Mangkusubroto, the Presidential Working Unit chief for supervision and control (UKP4), said that—ideally—infrastructure financing is sourced from the government and the private sector (50 percent), the government budget for five years (20-22 percent), as well as other sources of funding (30 percent).
Tjokorda Nirarta Samadhi, a deputy of UKP4, said that the funding can also be sourced from bond issuance proceeds. "The amount of government fund from the state budget depends on the National Medium Term Development Plan of the next government," he said.
What is also important, according to Tjokorda, is for infrastructure budget to be allocated evenly across all of Indonesia's geographic regions, and evenly distributed across all sectors. "The priority lies in the development of transportation and communications infrastructure," he said.
MAYA NAWANGWULAN | PRIO HARI KRISTANTO | YOLANDA RYAN ARMINDYA | AISHA SHAIDRA | RR. ARIYANI
