President Joko Widodo Invites Partnership for Global Infrastructure and Investment (PGII) to Support Infrastructure Development in Indonesia

INTI,- President Joko Widodo urged the Partnership for Global Infrastructure and Investment (PGII) to collaborate and support infrastructure development in Indonesia through tangible investments to achieve equity and prosperity. He made this statement during a side event of the Partnership for Global Infrastructure and Investment (PGII) G7 and Partner Countries held at the Grand Prince Hotel in Hiroshima on Saturday, May 20, 2023.

"The support of PGII for infrastructure development in Indonesia is crucial through concrete investments and other innovative financing. Let's collaborate for the sake of equity and the welfare of the people," President Jokowi said.

The President explained that previously, infrastructure development in Indonesia was concentrated only on the island of Java. This resulted in an uneven distribution of population and economic activities in the country.

"Previously, infrastructure development was concentrated only on the island of Java, one island out of the 17,000 islands in Indonesia, which ultimately led to 56 percent of the population being concentrated on Java and 58 percent of economic activities also centered on Java," the President explained.

Therefore, President Jokowi emphasized that Indonesia is currently undertaking infrastructure development outside of Java, such as ports or seaports and toll roads, as an effort to reduce the existing disparities.

"This includes the development of the new Nusantara Capital City (IKN), a city based on forests and nature, where 70 percent of the area is green and 80 percent of its energy sources come from renewable energy," President Jokowi continued.

Furthermore, the President mentioned that the funding for basic infrastructure development in the Nusantara Capital City comes from the state budget (APBN). He also stated that opportunities for funding from the private sector or investors will be opened if the internal rate of return (IRR) of the development is considered favorable.

"We finance the infrastructure development through the state budget and state-owned enterprises (BUMN), and if the IRR is good, we will provide opportunities for private sector or investor involvement," he said.

Aligned with this, the Head of State believes that the Nusantara Capital City can be a manifestation of Indonesia's transformation, which is highly open to investment and cooperation in various sectors.

"This is a showcase of Indonesia's transformation that is highly open to investment and cooperation, not only in the transportation sector but also in healthcare, technology, education, and tourism," he added.

President Joko Widodo's invitation to the Partnership for Global Infrastructure and Investment (PGII) received positive responses from international participants. They acknowledged the importance of supporting infrastructure development in Indonesia to promote equitable economic growth and expressed their willingness to explore opportunities for collaboration and investment.

The event also provided a platform for networking and exchange of ideas among participants, facilitating discussions on sustainable infrastructure, innovative financing models, and best practices in infrastructure development.

President Jokowi concluded his statement by reaffirming Indonesia's commitment to creating an enabling environment for infrastructure investment and inviting global partners to seize the opportunities available in the country. He emphasized that collaboration and partnership are vital in realizing inclusive and sustainable development for the benefit of all. ***. Hans