Jakarta (AFP). Chamber of Commerce and Industry (Kadin) Indonesia proposed to the government to establish a bank to finance infrastructure funding.
"Currently, funding is still financed by commercial banks the government, which means the source of funding is short-term, while infrastructure development requires long-term funding," said Vice Chairman of the Chamber of IT and Telecommunications Sector Broadcasting, Didie Soewondho, here on Tuesday.
Didie say because it requires long-term financing the Chamber of Commerce to propose to the government to establish a infrastructure bank.
"Previously, we still have Bapindo, with funds derived from bonds and could return in the long term," said Didie.
He explained that the average funding infrastructure takes over eight to 10 years, while commercial banks are only able to provide a five-year term loan.
"We expect the government to establish the infrastructure bank that is 100 percent owned by the state, such as the example in China that is able to finance the infrastructure industry to overseas," said Didie.
Indonesia currently exists at PT Indonesia Infrastructure Finance (PT IIF), which is managed as a non-bank private companies, with shareholders comprising the Asian Development Bank (ADB), International Finance Corporation (IFC), Deutsche Investations-und Entwicklungsgesellschaft mbH (DEG) and PT SMI. (Ant)