TEMPO.CO, Palembang - Rintaro Tamaki, Deputy Secretary General at the Organization for Economic Co-operation and Development (OECD), suggested the government to seek out long-term funding for infrastructures, namely the US$85 trillion global pension fund.
Tamaki, in Indonesia Forum - OECD seminar entitled "Enhancing the Role of Institutional Investors in Infrastructure Financing" in Palembang said that funding from no-banking institution is required to support the budget on infrastructure development across the globe, reaching US$3 trillion. Out of the total number, developed countries are only able to provide US$1 trillion. "This is a factor that delays infrastructure," he said.
The government noted that the annual investment budget allocation for infrastructure reached 5 to 7 percent of Gross Domestic Product (GDP). This is inadequate to support infrastructure development. "Therefore we must seek solution through banking and long-term investment," said Deputy Finance Minister Mahendra Siregar.
