The Need To Increase Infrastructure Funding

 

The Ministry of Public Work’s Construction Development Board asked central government and also regional government to put high concern on infrastructure funding in the upcoming years. Additional fund for infrastructure is important since the realization for investment on infrastructure in 2010-2014 is still deficit for Rp. 52,83 trillion.

“It is understandable that the capability of central government in sponsoring several projects is very limited. Meanwhile, private are still averse to fulfill their promises. Our problem is funding,” stated the Head of Ministry of Public Work’s Construction Development Board, Jediyanto W. Husaini on Thursday, 9 January 2014.

Construction Development Board noted that within the last four years, the needs for infrastructure funding have reached Rp 1,923.8 trillion. From that number, the realization of investment only reached Rp 1.870,97 trillion.

Most of the realization comes from State Revenues and Expenditures Budget (APBN) for Rp 815.6 trillion. Regional Revenues and Expenditures Budget (APBD) contributes Rp 445.57 trillion. Meanwhile, State-owned enterprise only contributes Rp 340.5 trillion and private for Rp 269.3 trillion.

With this condition, Construction Development Board asked central and regional government to rise up their budget for infrastructure. Government also needs to help private in realizing their infrastructure projects.

Multiplying the cooperation between government and private can be a solution. Another solution is to push private participation through Corporate Social Responsibility (CSR).

While for this year, Hediyanto said that the needs for infrastructural development would create construction market up to Rp 407 trillion in 2014. This number is higher compare to 2013 that only create market of Rp 369 trillion, and 2012 that only create market of Rp 284 trillion.

Government only set a budget of Rp 152.2 trillion for infrastructure in 2014. This fund will be distributed through several ministries and institutions such as Ministry of Public Work for Rp 63.7 trillion, Ministry of Transportation for Rp 63.7 trillion, and several other ministries and institutions.

Head of Banking Economist of Bank Internasional Indonesia (BII), Juniman, stated that besides a huge amount of fund, for the infrastructure expenses to be effective, government needed to create a good project plans to be implemented. “There should be a priority scale of which project can be built in near future,” said Juniman.

Source: Koran Kontan, Friday, 10 January 2014