Rp 570 Trillion Infrastructure Project Without State Budget

The government will encourage financing for national strategic projects without using the State Budget (APBN). National Development Planning Minister Bambang Brodjonegoro stated that a pipeline (master plan) worth Rp 570 trillion is currently available. Rp 300 trillion is allocated for toll road projects, Rp 200 trillion for oil refineries, and Rp 70 trillion for port hub development.

These projects can be channeled through the Public-Private Partnership (KPBU) scheme or the Non-Budgetary Infrastructure Project (PINA) program. Under the KPBU scheme, investors still receive government guarantees. The PINA scheme, on the other hand, is 100 percent privately funded. Limited budget for infrastructure projects has driven the government to seek alternative financing for strategic projects.

According to President Jokowi, the PINA scheme is one way to reduce reliance on the APBN for developing strategic infrastructure projects. Therefore, State-Owned Enterprises (SOEs) are urged to immediately conduct asset securitization to obtain capital injections.