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Asset-backed securities in Indonesia: A strategic alternative for infrastructure financing

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  • Winda Prajaningtyas

  • Agung Dinarjito

Abstract

Budget constraints continue to hinder the Indonesian government’s ability to maximize infrastructure development. In order to address these limitations, innovative financing methods are essential for accelerating infrastructure projects with restricted resources. This study explores the potential and challenges of implementing asset-backed securities (ABS) as an alternative financing mechanism for infrastructure development in Indonesia. Employing a qualitative research approach, this study utilizes primary data from interviews and secondary data from financial statements, prospectuses, and previous research on infrastructure asset securitization. The findings indicate that although ABS can serve as a viable alternative financing method for infrastructure development, its implementation presents several challenges. This study aims to contribute valuable insights for regulators, originators, and investors to facilitate the more effective adoption of asset securitization in Indonesia.

Suggested Citation

  • Winda Prajaningtyas & Agung Dinarjito, 2025. "Asset-backed securities in Indonesia: A strategic alternative for infrastructure financing," Jurnal Tata Kelola dan Akuntabilitas Keuangan Negara, Badan Pemeriksa Keuangan Republik Indonesia, vol. 11(1), pages 49-63.
    • Handle: RePEc:bsa:jtaken:v:11:y:2025:i:1:p:49-63:id:1854
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    1. Sri Liani Suselo & Shinta R.I. Soekro & R. Aga Nugraha, 2013. "Sekuritisasi Aset Lembaga Pembiayaan Dan Pengembangan Pasar Secondary Mortgage Facility Dalam Rangka Pendalaman Pasar Keuangan Indonesia," Working Papers WP/05/2013, Bank Indonesia.
    2. de Mendonça, Helder Ferreira & Barcelos, Vívian Íris, 2015. "Securitization and credit risk: Empirical evidence from an emerging economy," The North American Journal of Economics and Finance, Elsevier, vol. 32(C), pages 12-28.
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    4. Farruggio, Christian & Uhde, André, 2015. "Determinants of loan securitization in European banking," Journal of Banking & Finance, Elsevier, vol. 56(C), pages 12-27.
    5. Abdelsalam, Omneya & Elnahass, Marwa & Ahmed, Habib & Williams, Julian, 2022. "Asset securitizations and bank stability: Evidence from different banking systems," Global Finance Journal, Elsevier, vol. 51(C).
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