Infrastructure Project Financing Policy Forum attended by Minister of Finance Sri Mulyani Indrawati, Minister of Public Works and Public Housing Basuki Hadimuljono, Minister of Transportation Budi Karya Sumadi, Minister of Research and Higher Education Muhammad Nasir, Minister of Environment and Forestry Siti Nurbaya Bakar, and Secretary General of the Ministry of Religion on Friday (21/12) - Photo by the ministry

JAKARTA (TheInsiderStories) – The Ministry of Finance (MoF) has allocated Rp28.43 trillion (US$1.71 billion) worth of projects that can be funded by State Sharia bond in 2019, said senior official on Friday (12/21). That number has risen from 2018’s allocation of Rp22.53 trillion.

The minister Sri Mulyani Indrawati said the funding allocation would be allocated to the Ministry of Transportation, Ministry of Religion, Ministry of Public Works and Public Housing, Ministry of Environment and Forestry, Ministry of Research and Technology and Higher Education, Indonesian Institute of Sciences and the National Standardization Agency.

The funds will allocate for619 projects spread across 34 provinces. The details are as follows;

  1. 15 transportation infrastructure projects at the Ministry of Transportation with a value of Rp7.99 trillion
  2. 82 road and bridge infrastructure projects at the Directorate General of Highways at the Ministry of Public Works and Public Housing with a financing value of Rp7.84 trillion
  3. 180 flood and lahar control infrastructure projects, dam and reservoir management, as well as management of major urban drainage at the Directorate General of Water Resources, Ministry of Public Works and Public Housing with a financing value of Rp 9 trillion
  4. 14 Hajj embarkation projects and 16 integrated Hajj service center projects at the Directorate General of Hajj and Umrah Implementation, Ministry of Religion worth Rp 342 billion
  5. 41 construction of facilities and facilities of the PTKIN building and 125 madrasas at the Directorate General of Islamic Education, Ministry of Religion worth Rp2.02 trillion
  6. 128 construction and rehabilitation projects for the marriage hall and Hajj rituals at the Directorate General of Islamic Community Guidance, Ministry of Religion worth Rp.189.3 billion
  7. 6 national park development projects and 1 laboratory construction at the Ministry of Environment and Forestry worth Rp106.23 billion
  8. 7 high school building construction projects in the Ministry of Research and Technology worth Ep 498.08 billion
  9. 1 laboratory development project in BSN worth Rp 50 billion
  10. 3 laboratory construction projects at Indonesian Institute of Sciences worth Rp 240 billion.

Indrawati explained that project financing through Sharian bond continued to improve compared to previous years, both from the number of project proponents, the value of the funding allocated and the number of projects built.

As an illustration, in 2013 the projects financed through the bonds amounted to only Rp800 billion, while in 2018 the value reached Rp22.53 trillion. The ministry which is the initiator of the State Sharia Securities project is also increasing, in 2013 only 1 ministry, then in 2018 it increased to 7 ministries.

US$1: Rp14,500

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