The Indonesian government continues to develop innovative financing schemes to expedite the development of transportation infrastructure. For instance, the Ministry of Transportation has introduced various creative financing schemes, such as Government Cooperation with Business Entities (KPBU) and the Transportation Infrastructure Financing Center (PPIT). These efforts aim to reduce dependence on the State Budget (APBN) and involve the private sector in transportation infrastructure development.
Meanwhile, developed countries have also successfully implemented various innovative financing systems in transportation infrastructure development. As a comparison, Indonesia can learn best practices from these developed nations in terms of infrastructure financing, such as land value capture (LVC) and public-private partnerships (PPP).
By comparing the practices of innovative financing between Indonesia and developed countries, it is hoped that the best strategies can be identified and applied to accelerate the development of transportation infrastructure in Indonesia.
Several financing systems utilized by developed countries in infrastructure and health development include:
- Innovative Financing: Developed countries employ innovative financing to support infrastructure and health development. This involves government collaboration with the private sector, land value capture (LVC), and public-private partnerships (PPP).
- Health Financing: Developed countries have stronger and more reliable health financing systems compared to developing nations. This financing includes insurance, primary healthcare services, and a comprehensive healthcare approach.
- Infrastructure Financing: Developed countries utilize various funding sources to support infrastructure development, such as government investments, private investments, and foreign loans.
- Education and Research Financing: Developed countries have financing systems that support education and research development, encompassing government investments, private investments, and foreign loans.
By studying the innovative financing systems used by developed countries, Indonesia can develop more effective financing strategies to support infrastructure and health development.
For example, Japan and Indonesia both have experience in developing innovative financing systems for infrastructure development. Japan has successfully utilized various schemes, including bonds, development banks, and government-private sector partnerships. For instance, Japan implemented a toll road development project funded through bonds issued by the Japan Expressway Holding and Debt Repayment Agency (JEHDRA). In Indonesia, the Trans-Java toll road development project is an example of innovative financing using the Government Cooperation with Business Entities (KPBU) scheme. Here, the private sector funds a significant portion, while the government provides support.
Despite differing experiences, both countries have effectively implemented innovative financing strategies for infrastructure development. By learning from these experiences, Indonesia can enhance its financing strategies for future infrastructure projects.
