FGD on Funding Synergy Explores Solutions for Regional Infrastructure Bottlenecks

Tuesday, 25 November 2025

FGD on Funding Synergy in Jakarta

KIAT together with Bappenas hosted an FGD to gain insights and validate findings on the widening gap between regional fiscal constraints and Indonesia’s high infrastructure ambitions. The session opened with presentations highlighting the contraction in Transfers to Regions (TKD), underutilised financing instruments, and persistent challenges such as tariff rigidity, low revenue generation and weak project pipelines.

The FGD highlighted the need to reform mandatory spending rules, build sustained capacity, and strengthen alignment between planning and funding. The discussion concluded with a consensus that strong central government leadership, particularly in coordination, regulatory simplification and political continuity is essential to move from concept to implementation and unlock meaningful improvements in regional infrastructure delivery.

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