REPUBLIKA.CO.ID, JAKARTA -- Indonesian National Development Planning Agency's (Bappenas') Head Bambang Brodjonegoro held bilateral talks with Australian Minister for Trade and Industry and Minister for Regional Water of New South Wales Niall Blair during his recent Sydney visit.

At the bilateral meeting, the two ministers discussed cooperation that the two neighboring countries have established in the fields of trade, agriculture, finance, technology, education, and infrastructure.

Blair informed the Bappenas chief that his country had carried out several asset recycling activities, including building roads, tunnels, electrical transmission networks, and airports.

"The asset recycling scheme is the same as the non-government budget infrastructure financing scheme (PINA) that the Indonesian government has offered," Brodjonegoro said in an official statement released on Wednesday.

The PINA scheme was implemented in New South Wales when the state budget witnessed a surplus of AU$4.5 billion, underlining the importance of the infrastructure financing scheme in the expansion of infrastructure, which can attract the private sector.

The key to the success of the effort is the clear use of the PINA outcome or asset recycling in the expansion of infrastructure projects.

Brodjonegoro said the Indonesian government is encouraging private participation to develop infrastructure in the country.

The presence of infrastructure is vital to encouraging connectivity, promoting urban and rural development, curbing disparities, and serving as a prerequisite for Indonesia to avoid becoming a middle income trap country.

The funds needed to build the infrastructure are projected to reach Rp4,796 trillion until 2019. Nearly Rp1,978 trillion of the funds are expected to come from the state/regional budget, Rp1,066 trillion from state-owned companies, and Rp1,751 trillion from the private sector.

During his stay in Australia on June 18-23, Brodjonegoro also led a high-level Indonesian delegation to promote investment potentials in the fields of infrastructure and tourism in several cities in Australia, including Perth, Canberra, Sydney, Brisbane, and Melbourne.

The program, called Tour of Australia, was held in cooperation with the Australia-Indonesia Business Council.

Ikuti Whatsapp Channel Republika