Developed countries allocate US$600 billion for infrastructure in developing countries
This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
Investor Daily - Negara maju alokasikan US$600 M bagi infrastruktur negara berkembang
17 November 2022
Developed countries in Partnership for Global Infrastructure and Investment (PGII) are allocating funds to construct infrastructure worth US$600 billion. The funds in the form of grants and loans can be used by developing countries and poor countries for the next five years.
“Infrastructure construction needs to empower the people and local economy so that they have a high sense of ownership. So, developing countries will be tougher in facing global challenges in the future,” President Joko Widodo said related to Indonesia’s G20 presidency in his official statement on Wednesday (15/11/2022).
The funds are allocated to finance PGII’s new projects, including Just Energy Transition Partnership (JETP) worth US$20 billion for Indonesia, Indonesia Millennium Challenge Corporation (MCC) Compact worth US$698 million, Trilateral Support for Digital Infrastructure through partnership between Australia and Japan for digital projects, securing critical mineral supply chain in Brazil, development of solar energy in Honduras, as well as investment in health infrastructure for India.
President Jokowi, due to Indonesia’s G20 presidency, emphasised that PGII must support infrastructure construction in developing countries based on the collaboration paradigm. This involves more stakeholders, including the private sector, and produces sustainable construction that supports energy transition.
The capability of developing countries and poor countries to construct infrastructure amid the global multidimensional crisis is a challenge for fiscal policies. At the meeting among heads of states in Bali, Indonesia quite intensively brought up several issues to support economic recovery for developing countries and poor countries. Debt restructuring and infrastructure construction for developing countries and poor countries are Indonesia’s focus in their 2022 G20 presidency.
“PGII does not only invest in infrastructure construction, but also in the local capacity of our partners,” European Commission President Ursula von der Leyen said when she attended the PGII meeting during the G20 Summit in Bali. PGII is the collaborative effort of G7 countries, namely the United States of America, the UK, Italy, Japan, Germany, Canada, and France, established in June 2021 during the 47th G7 Summit in the UK.
