High Panel Discussion
“Alternative Financing to Accelerate Infrastructure Development”
Infrastructure development is a key factor in driving economic performance and social development of countries. Based on United Nation projection, the global population will grow to around 8.5 billion in 2030 that will impact on increasing demand for existing infrastructure. Higher resource and production, improved services in basic infrastructure (such as power, telecommunications, clean water, and sanitation) and connectivity access for people and goods, provision of health care and education, as well as employment and social protection, are needed to fulfill the demand of community.
According to McKinsey study, the world invest USD 2,5 Trillion a year to support infrastructure development in water, communication, transportation, and power sector that aims to increase economic growth and fulfill basic service for community. However, this number is not enough to close the significant gap of infrastructure investment. It is estimated that world will need to invest USD 3.3 Trillion annually through 2030 just to maintain economic growth momentum. This investment roughly can be translated into 3.8 percent of global GDP.
Unfortunately, the slow growth of economic development in the aftermath of the global financial crisis has significantly reduced the share of government’s budget allocation to build, maintain and operate new infrastructure. High debt levels have also restricted government’s ability to borrow, and governments are increasingly looking at ways to create space on their balance sheet rather than considering simple on or off the balance sheet approaches. Moreover, demographic patterns such as aging populations can increase pressure on government budgets, notably through the impact on providing healthcare or the increasing retirement savings gap. These factors reduce governments’ flexibility or ‘fiscal space’ to address the infrastructure investment. As one of solution to solve the problem on public infrastructure investment, governments could maximize the use of alternative financing scheme and create favorable economic conditions for investment in order to attract private sector in infrastructure project.
Expected Panelists of High Panel Session are:
- Minister of National Development Planning/Head of National Development Planning Agency, Republic of Indonesia
- Chairman of Indonesian Investment Coordinating Board, Republic of Indonesia **
- Representative from Ministry of Transport and Infrastructure, Turkey **
- Minister for Public Works and Housing, Republic of Indonesia **
- Lord Mayor City of London, United Kingdom **
- Vice President and Chief Investment Officer of Asian Infrastructure Investment Bank **
This Session will be moderated by Representative from Paramadina University **
** Please Note that the speakers are still under confirmation.