The
need for financing was one of the hindrances faced by the Provincial
Governments amidst heightened infra-structure Development. As Government’s
institution, the Center of Government’s Investment (PIP) had their commitment
to provide alternative Financing in supporting the development acceleration
process. PIP had been active in supporting infra-structure development in the
regions by financing basic infra-structure projects which could be directly
benefited by the people, like roads, bridges, hospitals, electricity etc. “The
point is that we are ready to finance infra-structure building in the regions”,
Soritaon Siregar, Head of PIP stated in Jakarta on Monday (28/1/2013).
However,
Soritaon remarked further, PIP only served as alternative source of financing
in the regions. Alternative he said, because PIP did not wish to overtake or
intercept. For example, if there was any institution who was ready to build
infra-structure in the regions, PIP would not step in. According to their
mission, PIP only played the role of alternative financer to speed up
development of infra structure in the regions. Although merely an alternative
source, he said, PIP was a source which could be benefited by the regions.
Furthermore
Soritaon explained that there was limited budget in the regions, so in order to
spur on development, extra fund might be needed from other sources so the
projects could be realized. Under the circumstances PIP stimulated realization
of prioritized projects in the regions through regional investment or regional
loan. He explained that regional credit was one of the instruments of
investments. Based on the Government’s Regulation no 20 year 2011 on regional
loan, PIP was expected to contribute to the process of regional development
whereby all provinces, regencies and cities in Indonesia might develop faster
because measured and transparent financing could be extended.
Soritaon
disclosed that PIP channeled out investment loan in 2012 to the amount of Rp
3.2 trillion. Soriataon said PIP would extend loan to the regional Government
at least around Rp 1.765 trillion and to the private sector Rp 1.425 trillion.
Credit application in the pipeline sector was among other for building four
RSUD regional hospitals, there road building projects, bridges, six terminal
markets, and two clean water projects.
PIP
according to Soritaon, would synergize with the Indonesia Economic Development
Acceleration (MP3EI) in 6 economic corridors in Indonesia focusing on the
development of hospitals, markets, infra-structure, bridges and renewed energy
production centers. Besides, he said, PIP would also finance green projects
like the mini-hydro and geo-thermal project (at the stage of exploration),
promissory notes issuance and Government and private projects.
Soritaon
claimed to have exercised some strategies to realize the credit investment
projects through illumination and education of candidate partners like
investment gatherings, publishing manual for regional loans and conducting
workshops on regional loans. He further disclosed that in 2012 there were 37
local governments whether provinces, regencies, or towns who applied for
regional loans to PIP. “We plan to engage strategic partnership with research
with research & development institutes of the communities” he remarked.
However,
Soritaon admitted, he still found some weaknesses in some regions. Weaknesses
in the regional were visible as they were not ready to execute the proposals,
while not being keen eyed enough to see the priority scale of regional
development. Therefore according to Soritaon, the Provincial Government
together with the local Parliament (DPRD) must stipulate priority scale of
projects being proposed, including therein standardization of documents and the
method of feasibility formation of the program being proposed. In spite of the
handicaps, he said, the regions were revitalizing development through
investment by the Central Government managed by PIP.
Business News - February 01,2013
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