Infrastructure Financing through Islamic
Finance in the Islamic Countries
75
Table 4.1.2 shows the investments gaps that may occur for the 2016-2040 period under
current investment trends and investment needs. The projected gap in infrastructure funding
during the period is estimated to be at USD 70 billion, with most of it coming from the
investments in water that show a gap of USD 65 billion.
Table 4.1. 2: Infrastructure Needs and Gaps Indonesia 2016-2040
(USD billion 2015 prices and exchange rates)
Road Rail Airports Ports Telecoms Electricity Water Total
Current trends (CT) 752 9 23 11 96 607 144 1642
Investment need (IN) 752 9 25 11 99 607 209 1712
Gap between IN and
CT
0 0 2 0 3 0 65 70
Source: Global Infrastructure Outlook
Table 4.1.3 shows the estimates of the medium term national development planning (RPJMN)
2015-2019 for the total funds needed to finance 1600 projects to be IDR 4,796 trillion (USD
3,425 billion). The distribution of the financing needs for different sectors is shown in Table
4.1.3. The top three sectors that will require the most infrastructure financing are electricity
(IDR 1,000 trillion or USD 714 billion), roads (IDR 733 trillion or USD 523 billion) and water
and transportation (IDR 591 trillion or USD 422 billion).
Table 4.1. 3: Projected Financing in Different Infrastructure Sectors
(RPJMN 2015-2019 (IDR trillion))
Sectors Financing Needs
(IDR trillion)
Roads 733
Rail roads 226
Water transportation 591.2
Air transportation 144
Land transportation 47
City transportation 86
Electricity 1000
Oil and Gas 507.3
Information and telecom 280.3
Sources of water 450.9
Clean water and disposal 403
Housing 327.5
Total 4,796.2
Source: Bank Indonesia, Ministry of Finance and OJK (2018)
The projected sources of funding to finance the proposed infrastructure projects are shown in
Chart 4.1.5. While the government will finance IDR 1978 trillion (USD 141.28 billion) or 41.3%
of the total investment needs, the SOEs will provide IDR 1066 trillion (USD 76.15 billion) or
22.2 % of the total, and the corporate sector is projected to provide the remaining IDR 1752
trillion (USD125 billion) or 36.5% of the total.