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Jakarta Post

Bank Indonesia encourages private sector to participate in infrastructure financing

  • Eisya A. Eloksari

    The Jakarta Post

Jakarta   /   Wed, December 4, 2019   /  05:27 pm
The Jakarta Post Image
Sunrise flower garden at Barelang Bridge of Batam Island. The construction of bridges is part of the government's infrastructure development agenda.(Shutterstock/Dwi Yulianto)

Indonesia’s central bank, Bank Indonesia (BI), is encouraging the private sector to participate in financing the country’s infrastructure development as the government’s budget will not be enough to provide the required funds. BI senior deputy governor Destry Damayanti said that private investment was one of the critical aspects of accelerating infrastructure development as the state budget (APBN) and traditional banking funding could not support all infrastructure projects. “Indonesia’s ratio of infrastructure-to-gross-domestic-product (GDP) is at 43 percent. It is still below most developed countries with an average of 70 percent,” she said during her keynote speech at the Pivotal Role of Infrastructure Financing to Advance Sustainable Economic Growth discussion in Jakarta on Monday. She said Indonesia has introduced other sources of financi...