OPPORTUNITIES AND CHALLENGES OF IMPLEMENTING ASSET-BACKED SECURITIES IN INDONESIA

Abstract

The Indonesia government's efforts to maximize infrastructure development are currently hampered by budget constraints. To accelerate infrastructure development with limited resources, creative financing methods are needed. This research aims to explain the potential and challenges of implementing asset-backed securities (ABS) as one of the alternative infrastructure financing methods in Indonesia. This research was conducted using a qualitative method. The data used in this research was derived from primary data obtained through interviews and secondary data This research is also limited to the application of asset securitization for the financing of infrastructure projects as part of state-owned enterprise assignments. The result of the research shows that asset-backed securities can be used as an alternative financing method for infrastructure development, including infrastructure projects carried out as part of state-owned enterprise assignments. This research is expected to contribute to regulators, originators, and investors to enhance better implementation of asset securitization in Indonesia.