TEMPO.CO, Jakarta - Finance Minister Sri Mulyani Indrawati met with some 150 Indonesian students at Columbia University, New York, on April 9. In the general lecture, Sri highlighted the importance of alternative funding to finance infrastructure development.
The event is a continuation of the Indonesian Speaker Series.
The minister said that in Indonesia, the amount of money people save out of their income is considerably low. "The saving rate in Indonesia is only about 30 to 33 percent," she said.
One of the challenges in this matter, the minister said, is because people tend to allocate their money on physical assets like land—and not on financial products. As a result, that money cannot be used to finance investments. This is unfortunate because Indonesia needs development funding from outside the state budget.
The event was held by the Permias NYC with the goal of creating a forum where leaders from the public, social and business sectors can meet Indonesian students and workers in New York to share ideas, knowledge as well as discuss the latest issues in the homeland.