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Jakarta Post

SMI looks to increase financing for local governments to reduce dependence on state budget

  • Riska Rahman

    The Jakarta Post

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Jakarta   /   Wed, October 16, 2019   /  04:47 pm
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Fishermen pass under the Barelang Bridge in Batam, Riau Islands. Local governments still mostly rely on state budgets to finance infrastructure projects such as bridges and roads(Antara/Irwansyah Putra)

State-owned infrastructure financing company PT Sarana Multi Infrastruktur (SMI) intends to expand its financing for regional administrations to give local governments more funding options to finance their infrastructure projects. SMI president director Edwin Syahruzad said most local administrations still relied on fund transfers from the central government and locally generated funds (PAD) to finance their development projects because of a lack of awareness of other funding options. “Most local administrations in Indonesia still rely heavily on their regional budgets to finance infrastructure projects such as for transportation, drinking water systems and waste management,” he said during a media gathering in Thousand Islands, Jakarta, on Oct. 10.  As of September this year, he said, SMI’s outstanding loans for regional administrations totaled Rp 2....