INDUSTRY.co.id - Jakarta, the Government faces limited funding in infrastructure development, so that the private sector is needed. Based on the record of Supply Chain Indonesia (SCI) from the data of the Ministry of PPN / Bappenas, the total value of investment required in infrastructure development in 2015-2019 amounted to Rp4,796.2 trillion.

Of that amount, funding from APBN and APBD was Rp1,978.6 trillion (41.3%) and state-owned enterprises (BUMN) amounting to Rp1,066.2 trillion (22.2%), requiring private financing of Rp1,751.5 trillion (36.5%).

For the development of transportation infrastructure (non-road), data Ministry of Transportation indicates that the financing needs in 2015-2019 amounted to Rp1.283 trillion.

"From that amount, the ability of APBN funding amounted to Rp491 trillion so that there is a shortfall expected to be fulfilled from private and state-owned enterprises amounted to 791 trillion," said Chairman Supply Chain Indonesia (SCI) Setijadi through written statement in Jakarta, Sunday (4/1/2018)

SCI also noted a number of Ministry of Transportation efforts to involve the private sector's role in infrastructure development. Ministry of Transportation develops a 50 year and extended scheme of Infrastructure Provision (KSPI).

He added that for the construction of 10 airports and 20 ports, for example, Ministry of Transportation offers to private and state-owned enterprises. In addition, at the 4th Asia Europe Meeting-Transport Minister Meeting (ASEM-TMM) in Bali on 26-28 September 2017, Ministry of Transportation Kemenhub offers 12 national strategic transportation projects with a total investment of around Rp40 trillion.

" Ministry of Transportation Kemenhub also involves the private sector in the operation of infrastructure and transportation facilities, for example, in the operation of the Marine Toll Program, weighbridge, and cattle ships," he said.

According Setijadi, private involvement in infrastructure development is still low because constrained some problems. In addition to the huge investment value, the investment payback period is very long and the level of profitability is relatively low in the infrastructure development business.

Therefore, the SCI recommends six things to enhance the private sector's role in infrastructure development, particularly transportation infrastructure and logistics.

First, increased certainty of infrastructure development planning from government and related regulations, including integration of inter-infrastructure development planning.

"This integration, for example, between the construction of ports and access roads," said Setijadi.

Next, Second, the integration between the infrastructure development plan by the central government and the local development plan. Third, improved coordination between central and local governments, including regulatory and bureaucratic licensing issues.

Fourth, the provision of fiscal incentives, including VAT, PPH, and other customs and customs duties. Fifth, the support of the Regional Government in the adjustment of General Spatial Plans (RUTR) and the provision and acquisition of land that became one of the main problems and take a long time in the early development of infrastructure.

Sixth, increased banking support in the provision of better funding schemes, including in the determination of interest rates. "The high national bank interest rates resulted in the national private sector competing against foreign companies using funding from local state banks that provide low interest rates," Setijadi closed.