Govt Allocates Rp 3.3 T for 2012 Investment Budget
IFT, 25/08/2011
The Indonesian government will raise its investment budget to Rp 3.3 trillion from Rp 1.4 trillion, which will be stated in the Draft State Budget 2012.
Luky Alfirman, Head of the State Budget Policy Center at the Ministry of Finance, said that the budget will support the country’s infrastructure projects, particularly those under the Public and Private Partnership Scheme.
In addition to infrastructure development, the budget will also be used for equity investments in strategic sectors and companies to optimize the funds for the country.
“State-owned investment agency, Pusat Investasi Pemerintah (PIP), will be tasked to bridge several gaps in infrastructure financing through the sovereign wealth fund, among others,” Luky said.
He added that in 2012, the PIP will buy more shares in PT Indonesia Asahan Alumunium (Inalum), whose contract expires in 2013. The government controls 41.13 percent shares in PT Inalum while Nippon Asahan Alumunium (NAA) holds the remaining 58.87 percent shares.