Indonesia and United States launch partnership in infrastructure financing
JAKARTA. The Ministry of Finance and the US Department of Treasury has launched a partnership in infrastructure financing.
In a press release published last week, the Ministry of Finance said the US Department of Treasury is experienced in creating alternative financing schemes from the private sector, reviewing infrastructure projects, and using the capital market as a source of infrastructure financing. This will serve as a reference for the Indonesian government.
In addition, the partnership is expected to increase Indonesia's capacity in asset recycling, impact assessment on financing schemes, and credit enhancement.
The partnership was officially launched through the signing of a memorandum of understanding (MoU) between Finance Minister Sri Mulyani Indrawati and US Treasurer Steven Mnuchin.
The MoU encompasses four key points: First, developing the regional financial market for infrastructure investment. Second, formulating financing instruments and structure to facilitate and reduce obstacles in private investment in infrastructure.
Third, encouraging innovation and the sustainability of infrastructure financing. Fourth, exploring financial capacity development and technical cooperation in infrastructure financing. (AM/MS)