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Blended Finance Scheme as an Alternative for Electricity Infrastructure Development in the NTT Border Area

Universitas Indonesia > News > Faculty of Administration News > Blended Finance Scheme as an Alternative for Electricity Infrastructure Development in the NTT Border Area

Depok, August 1st 2023. In the East Nusa Tenggara (NTT) border area, electricity infrastructure development has not been carried out optimally. Apart from being a province with the lowest electrification ratio, funding from the government is also limited. This was expressed by Farahdina Al Anshori at her doctoral promotion session at the Postgraduate Program at the Faculty of Administrative Sciences (FIA) at the Universitas Indonesia (UI).

Apart from that, she said, the presence of many parties in making and implementing policies in this border area resulted in the need for extra coordination. Farahdina Al Anshori raised this problem in her dissertation entitled “Electricity Infrastructure Development in Land Border Areas of NTT Province with a Blended Finance Scheme According to a Collaborative Governance Perspective”.

“This research began by asking what the condition of infrastructure development there was. It was found that conditions were not yet optimal because coordination and communication between government institutions themselves was still not running well, the budget was limited, and it was not attractive to investors. In fact, there is a desire, including from the community, to grow the local economy which clearly requires stability in electricity supply,” said Dr. Farahdina.

Facing these problems, Farahdina offers a blended finance scheme as an alternative with a collaborative governance perspective. From the research carried out, it was found that for infrastructure development in land border areas, a blended finance scheme can be used for the small business level which consists of two stages, namely a feasibility study and a joint venture.

These schemes are then replicated and aggregated to attract catalyst funding on a larger scale. In this scheme, a number of things that must be considered are the stakeholders, the type and role of each investor, the source of funds from the public or private sector, funding instruments, and the terms of cooperation.

In implementing this blended finance scheme, said Dr. Farahdina, collaboration actors must pay attention to a number of prerequisites and factors that will influence the course of the collaboration process. It is hoped that this blended finance scheme and collaborative design can be applied to increase cooperation within the government and related parties, in order to accelerate development in land border areas in NTT and become a solution when development is hampered due to funding problems.

At the doctoral promotion session held on Monday (24/7), Farahdina was declared to have passed and became the 35th doctor from FIA UI and the 223rd in Administrative Sciences with a Very Satisfactory graduation. The doctoral promotion session was chaired by Prof. Dr. Amy Yayuk Sri Rahayu, M.Si. with promoter Dr. Roy Valiant Solomon, M.Soc.Sc. and Co-Promoter: Dr. Retno Kusumastuti, M.Si. The assessment team consisted of Dr. Son Diamar; Dr. Toto Pranoto; Prof. Dr. Irfan Ridwan Maksum, M.Si.; and Prof. Bernardus Yuliarto Nugroho, MSM, Ph.D.

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