To provide a solution for local governments wishing to build\ninfrastructure, we are providing funds through PT SMI.<\/p>\n
Jakarta (ANTARA) - Finance Minister Purbaya Yudhi Sadewa stated that\nregional infrastructure development is guaranteed not to be disrupted\ndespite cuts to revenue sharing funds (DBH), as regions can borrow\nthrough PT Sarana Multi Infrastruktur (Persero)\/PT SMI.<\/p>\n
\u201cTo provide a way out for local governments that want to build\ninfrastructure, we are providing funds through PT SMI,\u201d said Purbaya in\nJakarta on Thursday, while serving as a speaker at the Sarasehan 100\nIndonesian Economists event.<\/p>\n
According to him, by using this financing, regional infrastructure\ncan be constructed even in the presence of DBH reductions.<\/p>\n
He explained that loans disbursed by PT SMI can be well-monitored,\nensuring that the quality of the existing infrastructure is truly\nguaranteed.<\/p>\n
Purbaya noted that regions can borrow from PT SMI, and repayments\nwill subsequently be deducted from a portion of the regional DBH; thus,\nfunds are distributed to the regions and the infrastructure is\nrealised.<\/p>\n
\u201cWe know that PT SMI is quite professional; they assess the projects\nthey intend to undertake with great care, much like a professional\nprivate entity. Therefore, we hope that with such an approach, regions\nwill not lack the funds to build their infrastructure,\u201d he said.<\/p>\n
Furthermore, Purbaya urged local governments planning to issue debt\nsecurities to be cautious, as the central government would bear the\nconsequences if they fail to repay.<\/p>\n
He cited examples such as Brazil and Argentina, where the central\ngovernment had to shoulder the debts of local governments.<\/p>\n
\u201cWe must be careful in making policies. If we are not careful, we\nwill end up like Brazil or Argentina back then; in Brazil, when the\nregions could not pay, it ultimately destabilised their entire economy,\u201d\nhe added.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/purbaya-regional-infrastructure-development-can-be-funded-through-smi-1788422906", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }