January 2, 2025 6:02 pm

Charting the Path to Indonesia’s Golden 2045: Innovating Infrastructure Financing

In the journey towards Indonesia’s Golden 2045, the Director General of Infrastructure Financing for Public Works and Housing (Dirjen PI), Herry Trisaputra Zuna, advocates for a paradigm shift in infrastructure financing methodologies. Addressing stakeholders at the “Food Security & Infrastructure Supporting Indonesia’s Golden 2045” Talkshow & Halal Bihalal event, organized by Inkindo in Jakarta on April 25, 2024, Zuna underscored the critical role of innovative financing mechanisms.

The aspiration to achieve Indonesia’s Golden status necessitates a dramatic increase in per capita income, aiming for $33,000, a far cry from the current $5,600. With two decades remaining until 2045, Zuna emphasized the daunting task ahead, highlighting the need for concerted efforts to bridge the substantial gap.

Central to this endeavor is a significant upsurge in infrastructure investment, projected to reach 8% of the GDP by 2045, compared to the present 5%. Additionally, the infrastructure stock must scale up to 70% of the GDP by 2045, marking a considerable leap from the current 40%.

Zuna emphasized that the path to Indonesia’s Golden future demands a systematic and sustained approach. “It’s not an overnight transformation; it requires a deliberate and continuous effort. Innovation is key to shaping and realizing this vision,” he remarked.

The imperative for innovation in infrastructure financing is underscored by the multifaceted challenges confronting current development efforts. Among these challenges is the glaring disparity in water storage capacity, with Indonesia lagging far behind neighboring Malaysia, which boasts a significantly higher capacity per capita.

Moreover, Indonesia faces significant hurdles in providing piped water, reaching only a fraction of the population. The housing sector is also confronted with a staggering backlog in homeownership, affecting millions of households across the nation. This discourse epitomizes the collaborative endeavors between the Media Indonesia Institute and the Legal and Public Communication Division of the Directorate General of Infrastructure Financing for Public Works and Housing. Through constructive dialogue and innovative thinking, these efforts aim to propel Indonesia towards the realization of its Golden 2045 aspirations.