Asset Securitization to Address Infrastructure Financing Gap in Indonesia

Adelia Surya, Pratiwi and Andriansyah, Andriansyah (2019): Asset Securitization to Address Infrastructure Financing Gap in Indonesia. Published in: Urbanization, Human Capital & Regional Development: The Indonesian Experiences (21 January 2019): pp. 187-229.

Abstract

Given the pressing challenges on infrastructure financing in Indonesia amidst the nation's low fiscal capacity, innovative financing is needed to attract more private sector financing. The paper argues that asset securitization can provide sufficient rationale and magnitude to address this issue. While there are already two infrastructure asset securitization commenced in 2017, the setup for securitization to grow further still needs to be improved. The paper develops arguments that going forward, authorities and related parties should consider the need for an integrated strategy to further develop securitization scheme to address the infrastructure financing gap. Given the considerable available assets to securitize and funds to mobilize, providing enabling framework at the national level including in term of regulation and commercial environment therefore are utmost important to hold for this securitization initiatives

• Item Type: MPRA Paper
• Language: English
• Keywords: Asset Securitization, Infrastructure Financing, Indonesia
• Subjects: G - Financial Economics > G2 - Financial Institutions and Services > G23 - Non-bank Financial Institutions ; Financial Instruments ; Institutional Investors; H - Public Economics > H5 - National Government Expenditures and Related Policies > H54 - Infrastructures ; Other Public Investment and Capital Stock

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