Critical Review Regarding The Directions for Transportation Development Financing

1.3.3 Solutions Offered

The solutions offered to address the financing challenges in the development of transportation sector is to optimize creative funding through PPP schemes, KSP, increasing the role of SOEs, SBSN, and pure private investment. Creative funding will be focused on strategic infrastructure and high economic value, while APBN funding will be allocated to increase Transportation Human Resources (HR) and development in disadvantaged, remote, outermost, and border (3TP) areas which are financially unprofitable.

1.3.4 References

In the paper "Blended Finance: Between the Benefits and Challenges in Its Application" by Eko Agus Purwanto and Muhammad Bagus Alfian, the concept of blended finance is explained as an effort to optimize the use of development financing instruments to mobilize commercial financing. Blended finance involves an important role in development finance, additional finance, and sustainable development in achieving sustainable development goals. This approach can be a solution to overcome the limited budget for transportation infrastructure development. This article also quotes the Minister of Finance Sri Mulyani who acknowledged the vital role of the transportation sector in the recovery of the national economy. The importance of transportation connectivity and the availability of connected transportation modes as supporting factors for economic recovery was also highlighted.

1.3.5 Comments on Solutions Offered

I agree with the Ministry of Transportation's efforts to increase the role of creative funding as an alternative source of financing. Involving the private sector in financing transportation infrastructure can help overcome the limitations of the state budget. Creative funding such as PPP, KSP, and pure private investment schemes can provide the additional funds needed to build the necessary infrastructure.

However, it should be remembered that the use of creative funding must be accompanied by transparency, accountability and attention to the interests of society. Infrastructure projects must consider their impact on the environment, sustainability, and the welfare of local communities. In addition, it is important to involve relevant stakeholders in the project planning and implementation process so that their interests are represented.

1.3.6 Conclusion:

The Ministry of Transportation's efforts to increase the role of creative funding as an alternative source of financing for transportation infrastructure development is a positive step. Engaging the private sector and using creative funding can help overcome the constraints of
the state budget. However, it is important to ensure transparency, accountability and take into account the interests of the community in project implementation. The references mentioned provide a deeper understanding of the concept of blended finance and the importance of sustainable financing in development.

1.4 Article
The original article can be access through: https://dephub.go.id/post/read/genjot-pembangunan-transportasi,-kemenhub-makin-tingkatkan-peran-pendanaan-kreatif