Indonesia has formed an Indonesia Investment Authority (INA) which will manage funds reaching hundreds of trillions of rupiah for funding infrastructure development in Indonesia.

Responding to this situation, the Director of CSID who also serves as Chair of the Permanent Commission on Infrastructure Policy of the Indonesian Chamber of Commerce and Industry (Kadin), Mohammed Ali Berawi, is of the opinion that the existence of an Investment Management Institution (LPI) will be able to accelerate infrastructure development in the country. At the Virtual Public Discussion “Opportunities, Challenges and Future of Investment in Indonesia”, Ali said that the formation of this institution is a form of breakthrough that needs to be appreciated in order to accelerate infrastructure development in Indonesia by synergizing and harmonizing various investments both from within and outside the country.

Furthermore, Ali also mentioned one of the research reports from McKinsey that every US dollar invested in infrastructure would be able to contribute around 20 percent of the increase in GDP through increased productivity. This is because infrastructure development is able to create jobs and attract all related industrial sectors. According to Ali, the estimated infrastructure development in Indonesia will cost around IDR 5,000 trillion to IDR 6,000 trillion, thus widening the potential to become one of the five largest economies by 2045, while other ASEAN countries need an average of US $ 3.3 trillion. to build adequate infrastructure until 2030.

Finally, Ali explained that the LPI essentially performs several important functions, namely managing investment for infrastructure development and managing infrastructure assets. Then there are two main infrastructures that need to be built in Indonesia, namely the first is basic infrastructure to reduce the development gap between regions and the second is modern infrastructure that is aimed at encouraging existing basic infrastructure.

source:
https://m.antaranews.com/berita/2073842/kadin-sebut-lpi-mampu-percepat-pembangunan-infrastruktur-ri
https://independensi.com/2021/04/01/lembaga-pengelola-investasi-masih-hadapi-tantangan-berat/
https://koran-jakarta.com/ina-diharapkan-bisa-membantu-mempercepat-pembiayaan-infrastruktur
https://m.mediaindonesia.com/ekonomi/394671/hadirnya-lpi-peluang-bagi-dunia-usaha
https://katadata.co.id/agustiyanti/finansial/60645512617ac/tantangan-lembaga-pengelola-investasi-akuntabilitas-hingga-politik
https://m.bisnis.com/ekonomi-bisnis/read/20210331/9/1375131/kadin-minta-investor-lokal-diutamakan-dalam-penawaran-mitra-swf
https://www.viva.co.id/amp/berita/bisnis/1360648-kadin-swf-indonesia-punya-ruang-besar-untuk-danai-infrastruktur?page=all&utm_medium=all-page
https://m.merdeka.com/uang/kadin-lpi-sebuah-terobosan-untuk-akselerasi-pembangunan-infrastruktur.html