JAKARTA - Public Works and Public Housing Minister Basuki Hadimuljono said there needs to be innovation in infrastructure development financing, including by using Government Sharia Securities (SBSN) or State Sukuk.
This, Mr Hadimuljono said, is due to limitations in the State Budget. “The Ministry of Public Works and Public Housing optimally utilises potential alternative financing sources such as SBSN to reduce the gap between the need [for infrastructure] and the ability of Budget financing in infrastructure development and maintenance,” he said in an official statement on Sunday (28/6).
According to Mr Hadimuljono, the use of SBSN in infrastructure financing is prioritised for projects with major impacts on economic activities, such as those that increase interconnectivity including logistics and access to seaports and airports.
In addition, the use of SBSN is also prioritised for existing road sections and to reduce travelling time on main roads, such as the 90.15-km Jambi-Peninggalan Provincial Road whose preservation costs Rp 193 billion.
The use of SBSN in infrastructure financing, Mr Hadimuljono added, impacts on independence in infrastructure development because all contractors and consultants involved are Indonesians. (MS)