Fund for Infrastructure Still Minimum: Kadin

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  • Ilustrasi Pembangunan jalan tol. Tempo/Subekti

    Ilustrasi Pembangunan jalan tol. Tempo/Subekti

    TEMPO.CO, JakartaDeputy general chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Rosan P Roeslani said fund set aside for infrastructure development in Indonesia is relatively small.

    "Around Rp5,510 trillion are needed to carry out development of infrastructure projects but sources of fund available are limited and fall short of the requirement," Rosan told reporters.

    In five years to come, fund set aside in the state budget is only around Rp1,178 trillion despite potential unused budget fund, or around Rp100 trillion in five years.

    "There are still a big gap of around Rp4,341 trillion between fund from state budget and the investment requirement. The government, therefore, has to look for non-budget funds to finance infrastructure projects," he said.

    He said the shortage is expected to be covered under the government-private cooperation scheme (KPS).

    "Here the government including regional administrations need to be able to persuade the private sector to take part in the development of infrastructure projects," he said.

    Infrastructure projects need huge funds and limited availability of fund would hamper implementation of the projects, he added.

    "Infrastructure project needs long term investment, therefore, long term financing is needed," he said.

    ANTARA