KEIN Sandi Response: The existence of Infrastructure Cultivated by the Private Sector
siaran Nasional. Jakarta, Deputy Chairperson of the National Industry Economic Committee (KEIN) Arif Budimanta said the government did not fully use the State Purchasing and Expenditure Budget (APBN) and debt to finance infrastructure development.
He said that he was responding to the vice presidential statement number 02 Sandiaga Uno about the construction of infrastructure through partnerships with the private sector and without debt.
"The financing scheme for infrastructure programs is through the National Budget, PPPs [Business Entity Government Cooperation], and SOEs," Arif said Wednesday (12/12).
Arif does not deny that there are infrastructure projects that purely use the state budget. However, he claimed the government also had a PPP-based project.
In the PPP project scheme, Arif, who is also a PDIP politician, mentions the private sector that provides funding to management. Meanwhile, he said, the government prepared land and gave concessions. Especially for the PPP scheme, he said debt is also inevitable.
"[PPP Scheme], usually the private sector is looking for financing through debt to banks, issuing corporate bonds, or mixed with their own capital," he said.
In addition to PPP, Arif said the government uses a financing model through asset-backed securities or securitization. The financing model, he said, was used by PT Jasa Marga (Persero) to develop new infrastructure.
"It could also be by issuing Fixed Income Funds [RDPT] to seek funding from the public or the market," Arif said.
Related to that, Arif assessed that the debt scheme to build infrastructure is not a problem as long as it can be repaid. Moreover, he assessed the infrastructure from the debt yield was in accordance with specifications, could be enjoyed by the people and provided many benefits.
"In essence, the financing schemes carried out so far have been many variants even though they are cooperated with the private sector," he said.
Previously, Sandiaga would continue infrastructure development with a different approach if selected in the 2019 Presidential Election. The form was a partnership with the private sector or through long-term budgeting. This is considered to be able to reduce the burden on the state budget and without debt.
"I once helped build the 116km Cipali toll road infrastructure, did not use state money and burdened debt for the state and BUMN," said the former DKI Jakarta vice governor after attending the Maulid Nabi in Rantau Prapat Labuhan Batu, Tuesday (11/12).
He said that he was responding to the vice presidential statement number 02 Sandiaga Uno about the construction of infrastructure through partnerships with the private sector and without debt.
"The financing scheme for infrastructure programs is through the National Budget, PPPs [Business Entity Government Cooperation], and SOEs," Arif said Wednesday (12/12).
Arif does not deny that there are infrastructure projects that purely use the state budget. However, he claimed the government also had a PPP-based project.
In the PPP project scheme, Arif, who is also a PDIP politician, mentions the private sector that provides funding to management. Meanwhile, he said, the government prepared land and gave concessions. Especially for the PPP scheme, he said debt is also inevitable.
"[PPP Scheme], usually the private sector is looking for financing through debt to banks, issuing corporate bonds, or mixed with their own capital," he said.
In addition to PPP, Arif said the government uses a financing model through asset-backed securities or securitization. The financing model, he said, was used by PT Jasa Marga (Persero) to develop new infrastructure.
"It could also be by issuing Fixed Income Funds [RDPT] to seek funding from the public or the market," Arif said.
Related to that, Arif assessed that the debt scheme to build infrastructure is not a problem as long as it can be repaid. Moreover, he assessed the infrastructure from the debt yield was in accordance with specifications, could be enjoyed by the people and provided many benefits.
"In essence, the financing schemes carried out so far have been many variants even though they are cooperated with the private sector," he said.
Previously, Sandiaga would continue infrastructure development with a different approach if selected in the 2019 Presidential Election. The form was a partnership with the private sector or through long-term budgeting. This is considered to be able to reduce the burden on the state budget and without debt.
"I once helped build the 116km Cipali toll road infrastructure, did not use state money and burdened debt for the state and BUMN," said the former DKI Jakarta vice governor after attending the Maulid Nabi in Rantau Prapat Labuhan Batu, Tuesday (11/12).
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