Finance Minister Encourages Innovation to Reduce State Budget Usage

By : Herry Barus And Aldo Bella Putra | Saturday, December 30 2017 - 20:00 IWST

Menteri Keuangan, Sri Mulyani (Foto: Ist)
Menteri Keuangan, Sri Mulyani (Foto: Ist)

INDUSTRY.co.id - Jakarta - Finance Minister Sri Mulyani Indrawati encourages ministries / agencies to innovate to reduce the use of state budget and revenue (APBN) in running national priority and strategic programs.

"Our ministry / institution asked to also innovate and be creative to be able to keep running the national priority program but not fully funded directly through APBN or budget allocation," said Ani, the Minister of Finance`s greeting in signing the 12 banking loan credits with KAI for LRT Jabodebek in Jakarta, Friday (29/12/2017)

According to her, the current financing of priority projects can be done through a combination of ministry budgets, budgets on state investment in state enterprises, subsidies and guarantees up to a number of instruments prepared by the Ministry of Finance such as Government Cooperation with Business Entities (KPBU).

Jabodebek LRT project itself, continued Ani, has a complicated financing structure because it not only uses state money for multiyear project contracts (multiyears).

The Rp29.9 trillion project also uses the State Budget (APNN) in a number of instruments, namely State Equity Participation (PMN) to investors and project contractors, namely KAI and Adhi Karya amounting to Rp9 trillion, government guarantees and ticket subsidies.

Ani asked all parties involved to participate in maintaining and supervising the project until completed in 2019.

"With more and more oversight, we hope that Adhi Karya can perform the functions of contractors in a good, efficient, non-compromised quality There is no corruption Then KAI can also manage projects efficiently, well, no corruption and loans can be returned unsecured I have to be called ( KPK)," she said.

Minister of Transportation Budi Karya Sumadi who also attended the event admitted Jabodebek LRT project to be a new breakthrough in infrastructure financing that no longer rely on the state budget.

"For us this is a new era in which one infrastructure that has been using the APBN, we managed to break through the gap, to be privately funded," he said.

Budi hopes the signing of a syndicated loan contract from 12 banks for the new transportation project can provide certainty of project completion. "Also answered some doubts about the continuation of this project," he concluded. (Ant)

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