Jakarta Wins Award for Creative Financing Support for Provision of Transportation Infrastructure

The Jakarta Provincial Government received an award from the Transportation Ministry (Kemenhub) for creative financing support in providing transportation infrastructure.

There are other creative financing schemes that can be used

The award was handed over directly by Transportation Minister, Budi Karya Sumadi to Jakarta Acting Governor, Heru Budi Hartono, at the Transportation Ministry Building, Jalan Medan Merdeka Barat, Central Jakarta, Thursday (8/10).

"Today, on behalf of the Jakarta Government, I received the award certificate from the Transportation Ministry. We're grateful for this award for the Jakarta Government," he expressed, in the Jakarta Government's press release.

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He asserted that the Jakarta Government was committed to continously encourage creative financing schemes as a solution to spur development without burdening the government budget, including in the development of mass transportation infrastructure in Jakarta.

"So, there are several concepts to accelerate infrastructure development. Besides using budgets from the State Budget (APBN) or City Budget (APBD), there are other creative financing schemes that can be used to accelerate development in regions, including in Jakarta," he said.

He went on to say that the Jakarta Government had implemented a creative financing scheme to accelerate the development of public transportation infrastructure in Jakarta, such as MRT and LRT.

"Hopefully with this creative financing scheme, we can be more flexible in building Jakarta," he added.

Transportation Minister, Budi Karya Sumadi uttered his party he continues to increase the portion of transportation infrastructure provision through non-APBN creative financing. One of the efforts made, namely to strengthen institutions, by forming a new work unit called the Center for Transportation Infrastructure Financing (PPIT).

He encouraged his staff to continuously learn and increase knowledge about various existing creative financing schemes, such as Government and Business Entity Cooperation (PPP), Utilization Cooperation (KSP), Infrastructure Utilization Cooperation (KSPI), utilization of State Property (BMN), borrow, rent, KETUPI (limited costs for infrastructure development), etc.

"PPIT is expected to accelerate the realization of cooperation by involving various parties, both BUMN/BUMD and private business entities. We want the non-government sector to participate in building transportation infrastructure and building the nation together," he stated.