REPUBLIKA.CO.ID, JAKARTA -- Finance Minister Sri Mulyani Indrawati said that infrastructure development could resolve poverty, reduce inequality, and improve national productivity and competitiveness. "Infrastructure development is a form of investment that makes Indonesia durable to economic growth momentum and reduces poverty and inequality," the minister stated here on Wednesday.

Sri Mulyani added that policymakers should innovate to create infrastructure development in accordance with the objectives and provide connectivity to the people.

She hoped that the infrastructure development will not generate inequality and cause problems that could pose a burden to the national economy. "The infrastructure can cope with inequality through connectivity, if it is conducted according to the plan," she stated, hoping that the infrastructure development can be completed on time and within the budget.

According to Sri Mulyani, cost overrun in infrastructure development can be caused due to mark-up and corruption, and it is a fundamental betrayal in the development program.

She remarked that infrastructure development in Indonesia still requires private roles, because of very limited state budget mostly allocated for social spending.

Currently, infrastructure development in Indonesia needs Rp4,796.2 trillion (US$ 373.2 billion). 

The development program through state and local budgets, state-owned enterprises, and private sectors amount to 41.3 percent, 22.2 percent, and 36.5 percent, respectively.

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