The government will invite outside investors through the Investment Management Institute or LPI to encourage the optimization of infrastructure assets, especially existing projects from state-owned enterprises or BUMN. Finance Minister Sri Mulyani Indrawati explained that capital injection for infrastructure projects is very important to boost the economy. However, the limitations of the state budget for revenues and expenditures (APBN) make it necessary to have other financing schemes, such as through investment. She said that the financing could come from state-owned companies or investments from other parties. The financing is not only intended for the construction of new projects, but includes the management of existing projects to make them more optimal. "One very important approach is the signing of a head of agreement, an approach through asset optimization or asset recycling, especially existing infrastructure projects in BUMN, which have been built or are already operating," Sri Mulyani said on Thursday (4/14/2022).
She said that the incoming investment is not only through the state budget or the state treasury, but injection of fresh money can be through LPI or the Indonesia Investment Authority (INA). LPI can bridge investment from foreign investors to existing infrastructure projects. According to Sri Mulyani, the establishment of INA allows Indonesia to develop creative financing by creating a very credible platform. Indonesia can work with investors from various sources, so that they can obtain long-term equity investments. "The scheme will greatly provide additional stability for Indonesia's development, because it is not in the form of debt and short-term securities," She said.
Sri Mulyani said that the co-investment strategy could be capital for Indonesia, in this case LPI to convince investors. Indonesia can provide a balance between investment certainty and an acceptable level of risk. "This is an effort for us to build the reputation of the INA platform, not just an MoU head of agreement, but also a signal to the world how Indonesia is doing a credible infrastructure investment business," said Sri Mulyani.
