Blended Finance, Alternative Funding for Infrastructure Projects
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JAKARTA - The government preparing a new scheme to finance infrastructure projects without burdening funds from the state budget. The scheme is known by the name of blended finance or funds obtained from the benefactors.
Funds from blended finance can be disbursed to the infrastructure sector, provided the project has a high social value and is beneficial to many people.
"Blended is looking for meaningfull on social impact projects to community because the blended finance utilizes philanthropic funds that have specific mission such as health program, waste in sea, and others," said Country Head of Deloitte Infrastructure and Capital Project Indonesia, Bernardus Djonoputro at the Deloitte Indonesia Infrastructure CEO Forum 2017 event in Jakarta on Thursday (19/10).
Not just a social mission alone, he confessed, the infrastructure project must also be built as well as possible, even there should be a return on investment invested.
"The structure and the preparation of the project should be good, because the funds must have their own criteria. The key in good preparation, investment grade should not be haphazard to use consultants, so be good for philanthropy funders can believe," said Bernardus.
Nevertheless, he added, projects that can be funded from blended finance should be profitable. This is because, investors also need funds to play it back to various countries in the world.
"Of course, to be sustainable, so the funds are also rolling, have a return, but it is low return," he said.
On this occasion, the Coordinating Minister for the Ministry of Marine Affairs, Luhut Binsar Panjaitan who also became one of the speakers stated that the development of infrastructure built by the Jokowi government run well and on target.
The infrastructure development that is currently focused on the government's pursuit is the Jakarta-Surabaya rapid train development, Patimban Port and Kertajati Airport.
The government does give more attention to the transportation infrastructure, one of which improves logistics. Not only that, said Luhut, investors are also more funding infrastructure development in Indonesia, such as China Development Bank (CDB).
"We've been in contact so they see which projects are interesting for them, the return is good. I can see that this LRT can be one, and maybe Kertajati, maybe a rescue energy project," said Luhut.
Jokowi project that is being done continues, continued Luhut, and of course infrastructure development continues dilencarkan, in order to overcome the obstacles that exist.
Funds from blended finance can be disbursed to the infrastructure sector, provided the project has a high social value and is beneficial to many people.
"Blended is looking for meaningfull on social impact projects to community because the blended finance utilizes philanthropic funds that have specific mission such as health program, waste in sea, and others," said Country Head of Deloitte Infrastructure and Capital Project Indonesia, Bernardus Djonoputro at the Deloitte Indonesia Infrastructure CEO Forum 2017 event in Jakarta on Thursday (19/10).
Not just a social mission alone, he confessed, the infrastructure project must also be built as well as possible, even there should be a return on investment invested.
"The structure and the preparation of the project should be good, because the funds must have their own criteria. The key in good preparation, investment grade should not be haphazard to use consultants, so be good for philanthropy funders can believe," said Bernardus.
Nevertheless, he added, projects that can be funded from blended finance should be profitable. This is because, investors also need funds to play it back to various countries in the world.
"Of course, to be sustainable, so the funds are also rolling, have a return, but it is low return," he said.
On this occasion, the Coordinating Minister for the Ministry of Marine Affairs, Luhut Binsar Panjaitan who also became one of the speakers stated that the development of infrastructure built by the Jokowi government run well and on target.
The infrastructure development that is currently focused on the government's pursuit is the Jakarta-Surabaya rapid train development, Patimban Port and Kertajati Airport.
The government does give more attention to the transportation infrastructure, one of which improves logistics. Not only that, said Luhut, investors are also more funding infrastructure development in Indonesia, such as China Development Bank (CDB).
"We've been in contact so they see which projects are interesting for them, the return is good. I can see that this LRT can be one, and maybe Kertajati, maybe a rescue energy project," said Luhut.
Jokowi project that is being done continues, continued Luhut, and of course infrastructure development continues dilencarkan, in order to overcome the obstacles that exist.
(rnz)