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Jakarta Post

Finance Ministry urges local govts to diversify infrastructure funding amid budget cuts

  • Mardika Parama

    The Jakarta Post

PREMIUM
Jakarta   /   Fri, September 4, 2020   /  08:23 am
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Infrastructure push: Workers make upgrades to railway infrastructure at Jatinegara Station in East Jakarta on April 4, 2018. (JP/P.J. Leo)

The Finance Ministry has urged regional administrations to look at alternative funding schemes, including public-private partnerships (PPP) and blended financing, to continue infrastructure development, as the state and regional budget will be geared toward fighting COVID-19. The prioritizing of COVID-19 recovery efforts in the state budget and regional budgets is expected to continue until 2022, according to the ministry’s director of state financial risk management, Brahmantio Isdijoso, on Wednesday. “We expect budget cuts for infrastructure projects and, therefore, we need to find new ways to fund the projects,” he said during an online discussion held by the ministry. The government plans to provide assistance in setting up new funding schemes for infrastructure development, including more progressive PPP schemes, municipal bonds, as well as project-linked ...