Indonesia Needs Rp200 Trillion A Year For Infrastructure Projects

Makassar, S Sulawesi, Oct 16 (Antara) - Indonesia needs at least Rp200 trillion a year for infrastructure projects, if it is to catch up in what it is lagging behind, an official said. Head of the Fiscal Risk Management Center of the Finance Ministry Freddy Saragih quoting a survey said the fund will be needed to finance infrastructure projects to be competitive in that sector. During his pre-election campaign, Jokowi promised to boost infrastructure development, Freddy said referring to president elect Joko Widodo. Among the big infrastructure projects promised by Jokowi is "sea toll road" -- to facilitate sea transport between between the western and eastern regions of the country. Development of infrastructure would continue and would not be stopped only because of lack of financial support from the government, Freddy quoted Jokowi as saying here on Thursday. "We will build toll road to link Kalimantan, Sulawesi and Papua. Development of the toll road is part of the acceleration program of Jokowi," he added. He said according to the survey by McKinsey, Indonesia would need huge investment to make up for the fact of having fallen far behind in infrastructure development. Therefore, Indonesia needs to boost economic growth by 5-6 percent annually in the next 10 years, he added. In a bid to accelerate development, the government through the finance ministry together with infrastructure insurance agency PT Penjamin Infrastruktur Indonesia (PII) will provide guarantee for infrastructure projects under the government private cooperation scheme (KPS). With capital from the state budget, PT PII which is owned by the state, will provide guarantee independently and professionally, Freddy said . PII also will help in preparation, tender and monitoring of project implementation, Freddy said . The agency will guarantee protection against political risks such as caused by change in policy that could hamper project implementation, he said . "Protection by PII will last for more than 10 years," he said.