Coordinating Minister for the Environment Luhut Binsar Pandjaitan said the government is reviewing the blended finance scheme to fund a number of infrastructure projects. This scheme will utilize a number of funds that are floating in the market, including philanthropists’ money saved in in banks around the world.
“There is a potential of US$12 trillion,” he said in Jakarta, Wednesday, October 18.
Luhut is confident that the use of this scheme will help reduce the State Budget’s burden in financing infrastructure projects.
This year, the government is allocating Rp387.3 trillion for infrastructure projects. According to Luhut, projects that may use the scheme include managing plastic waste at sea, conserving the fishery sector, and providing affordable housing for fishermen.
Last week, Public Works and Public Housing Minister Basuki Hadimuljono said private companies will dominate projects in their institutions rather than state-owned enterprises (SOEs). “SOEs only got 20 percent.”