The government said that infrastructure development is still a priority. However, in the 2025 Draft State Budget (RAPBN), the infrastructure development budget is only IDR 400.3 trillion, down from 2024 which reached IDR 423 trillion.
Therefore, in the future, the government is encouraging alternative financing that can help the APBN. Two creative financing schemes for infrastructure development have been launched, namely Limited Management Rights (HPT) financing or Limited Concession Schene (LCS) and also the scheme Land Value Capture (LVC) or Area Value Enhancement Acquisition Management (P3NK).
“The Coordinating Ministry for Economic Affairs and the ministries and institutions have successfully completed the drafting of creative financing regulations, including HPT, known as LCS based on Presidential Decree Number 66 of 2024 related to the management scheme for obtaining increased regional value (P3NK) based on Presidential Decree Number 79 of 2024,” said the Minister of Economy, Airlangga Hartarto in his remarks at the Launching of Creative Financing Regulations for Infrastructure Development, Kempinski Hotel, Jakarta, Wednesday (28/8).
HPT, Airlangga explained, is a scheme for optimizing state-owned goods and BUMN assets to obtain funding for infrastructure selection.
“HPT is also known as assets recycling “Those that have been implemented in Australia in 2014 include the Port of Melbourne and Sydney Airport,” he said.
Then, Airlangga explained that the P3NK scheme is a regional-based funding due to the increase in land value due to infrastructure investment around an area. This scheme has been carried out in various countries such as England and Japan.
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“The launch of creative infrastructure regulations is an initial step but needs to be supported by cooperation from all parties such as ministries/institutions, government, state-owned enterprises and regions to realize competitive investment,” he said.
Meanwhile, Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso revealed the need for infrastructure development based on the 2015-2019 National Medium-Term Development Plan (RPJMN) of Rp4,700 trillion. Then, in the 2020-2024 RPJMN there was a significant increase reaching Rp6,445 trillion.
“And from that amount, the portion of financing or funding from the private sector has reached a significant increase from the previous Rp1,700 trillion to Rp2,707 trillion from the private sector. Therefore, we need alternative financing that can reduce the burden on the APBN and APBD by encouraging private sector participation in supporting infrastructure development,” he explained.
He said that the estimated need for infrastructure investment based on the 2025-2029 RPJMN for several main sectors such as the water resources, transportation, electricity sectors, the largest proportion in the transportation sector reached IDR 1,145 trillion.
“The preparation of these two creative financing regulations yesterday involved the relevant ministries and institutions and two presidential regulations were issued 66 of 2024 concerning infrastructure financing through HPT which were issued on July 2, 2024. And in mid-August, presidential regulation 79 of 2024 concerning P3NK was also issued, especially funding for the provision of infrastructure through the management of the acquisition of increased regional value,” he added. (Z-11)
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