JAKARTA (TheInsiderStories) - PT Indonesia Infrastructure Finance (IIF) and PT Kopelindo Infrastructure said they are committed to co-finance infrastructure projects valued up to US$1 billion in the next five years. This step is part of the acceleration of development infrastructure without relying on the State Budget.
“With this partnership, accelerating the infrastructure development in Indonesia can be realized,” President Director of IIF Arisudono Soerono stated on Friday.
He continued, the sectors that will be financed by the company focused on the infrastructure to facilitate the mobility of the flow of goods and services.
Herianto Pribadi, President Director of PT Kopelindo Infrastructure, a subsidiary of the cooperative employees and retirees of Perum Bulog (Kopelindo), will focus on food infrastructure financing, In the early stages, the company targets the financing of $125 million for two years period.
Meanwhile, Finance Minister Bambang Brodjonegoro said to get into the field of infrastructure, Kopelindo Infrastructure supports national development priorities. However, Bambang asserted that in addition to boost infrastructure, the government also has a priority to create food sovereignty.
“I expect Kopelindo could become a food conglomerate,” said Bambang.
Throughout 2015, IIF has signed 10 new financing agreements for a total financial commitment amounting to Rp 5.6 trillion, which amounted to Rp 4.2 trillion of which has been disbursed. Several projects have been funded as an example is the expansion of Soekarno Hatta International Airport, the construction of a gas pipeline in South Sumatra, and Cipali toll road in West Java.
The infrastructure sector was instrumental in sustaining the growth of the national economy. The seriousness of the government in accelerating the infrastructure development is also evident from the infrastructure budget in the state budget continues to increase, from Rp 138 trillion in 2014 to Rp 178 trillion in 2016 and is targeted in the draft budget in 2017 rose again to Rp 312 trillion.
The Government has also strengthened PT Sarana Multi Infrastruktur (Persero), one of the shareholders IIF. In the future, the role of SMI and IIF is indispensable in the process of economic transformation and acceleration of infrastructure projects in the country.
While, Kopelindo assets reached Rp 2.6 trillion, with a growth of 23 percent on an annual basis. (*)