Government Needs IDR 6000 Trillion to Achieve Gross Domestic Product Target

Indonesia's Traditional Market

The gross domestic product (GDP) growth target in the 2020-2024 National Medium-Term Development Plan (RPJMN) requires fantastic funds. The government must get Rp 6000 trillion to meet the target.

Besides gross domestic product, these fantastic funds are also needed to realize all infrastructure projects in the next five years.

Unfortunately, the government is only able to fund about 37 percent of the total needs so innovative financing is needed through alternative schemes, one of which is through government-business partnerships (PPP).

Director of Development Funding for Development of the Ministry of National Development Planning/Bappenas Sri Bagus Guritno said that with the scheme, the state revenue and expenditure budget (APBN) could be alternative funding and financing. In addition, infrastructure development is expected to be faster, more effective, and more efficient.

“The presence of the PPP as an alternative financing is expected to accelerate the development of quality, effective, efficient and targeted infrastructure and on time, as well as being able to become an alternative funding other than the APBN and APBD to provide infrastructure,” said Bagus at the ‘Sharing Session regarding the Implementation of the PPP Financing Scheme. in the Road Lighting Infrastructure Project’, Monday (7/11/2022).

In its development, he continued, the implementation of the PPP scheme is not only encouraged to fulfill the provision of infrastructure to meet the provision of infrastructure for the central government public, but also to fulfill the provision of infrastructure for the local government public.

As for now, Madiun Regency has become an example of a regional APJ PPP project that has successfully reached the stage of determining the winner of the auction and the process of signing the cooperation agreement which was carried out on September 20, 2020.

Apart from Madiun, Bagus mentioned several other projects initiated by business entities that are currently in the process of being prepared, including in Medan City, Kab. West Lombok, Samarinda City, Kab. Bandung, Denpasar City, and Pekanbaru.

“The achievement of this project can serve as a pilot in promoting the PPP scheme for similar projects in other regencies/cities in Indonesia,” he said.

On the same occasion, the Business Director of PT Penjaminan Infrastruktur Indonesia (Persero) Andre Permana emphasized that the PPP is not a new scheme. PT PII itself has guaranteed more than 30 PPP projects where the investment value is above IDR 300 trillion.

“For the local government itself, this is not a new thing and has been proven in the street lighting sector. Madiun Regency has completed the transaction stage and is preparing to obtain financing shortly so that it enters the construction and other implementation stages, “explained Andre.