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Sri Mulyani: State Faced Infrastructure Crisis a Decade Ago

28 March 2019 17:33 WIB

Finance Minister Sri Mulyani, MRT CEO William Sabandar, and Finance Ministry officials at the MRT Senayan Station, Jakarta, Wednesday, March 6, 2019. TEMPO/Francisca Christy Rosana

TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati recalled that Indonesia once faced an infrastructure construction crisis 10 years back when the country was hampered by limited financing; sourced exclusively from the state budget (APBN).

“Our needs for infrastructure were tremendous but had limited fiscal space (APBN),” said Sri Mulyani as a key speaker in the 10th anniversary if PT Sarana Multi Infrastruktur in Central Jakarta today, March 28.

According to Minister Sri, the financial condition at the time did not support the government’s goal to develop its infrastructure projects, even though the drive to construct was overwhelming.

The problem faced by the government ten years ago, says Sri Mulyani, was land acquirement risks, technical preparation difficulties, environment issues, social condition, and financing. These conditions created a wall for the country to open a partnership with the private industry.

She said that there is more fund allocated for infrastructure development during the administration of President Joko “Jokowi” Widodo. “But as we could see right now, there still needs a lot of infrastructure developments [despite the overwhelming developments],” said Sri Mulyani.

FRANCISCA CHRISTY ROSANA



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