Signing of Preliminary Agreement for Investors and Investors of Toll Roads, As a Step to Facilitate Innovative Non-APBN Financing through PINA Center for Private Investment
Jakarta - Indonesian President Joko Widodo (Jokowi) continues to advise Indonesia to continue to improve the competitiveness of the Indonesian economy, one of which can be achieved through massive and equitable infrastructure development. In this case the construction of expressways or commonly known as Toll Roads has an important role and benefits in the distribution of development for the people of Indonesia.
In an effort to improve the competitiveness of the Indonesian economy, on Monday (10/14/19) a Head Agreement between PT Jasa Marga (Persero) Tbk and PT China Communications Construction Indonesia (CCCI) and PT Wijaya Karya (Persero) was signed. Tbk and PT Jasa Sarana with PT ICDX Bonded Logistics (ILB) in Benny's Meeting Room. S Muljana, Bappenas Building, Jakarta.
In the Signing, the funding structure facilitated by PINA consists of Direct Equity Financing conducted by PT Jasa Marga (Persero) Tbk with PT CCCI worth Rp 23.3 trillion. Also present at the event, the Director General of Public Works and Housing Infrastructure Financing of the Ministry of PUPR, Eko D Heripoerwanto, and Member of the Professional Element Toll Road Regulatory Agency, Koentjahjo Pamboedi.
Based on data submitted by the National Development Planning Agency (Bappenas) regarding the allocation of funding for infrastructure which is Rp. 4.66 trillion or equivalent to USD 359 billion in the 2015-2019 National Mid-Term Development Plan (RPJMN). In the 2020-2024 RPJMN, the figure increased by 23% to Rp 6.17 trillion or equivalent to USD 441 billion. Of the total infrastructure financing that is so large, approximately 40 percent can be supported by the State Revenue and Expenditure Budget (APBN), while the remaining 60 percent is supported by non-APBN or non-government budget sources.
Referring to the Presidential Regulation Number 58 Year 2017 concerning the Acceleration of the Implementation of the National Strategic Project, which explains the establishment of the Government Non-Budget Investment Financing (PINA) facilitation unit in mid 2017, its main function is in producing creative funding on a non-government budget basis. Until the end of 2018, the PINA Center for Private Investment has posted a financial close of Rp 47 trillion or equivalent to USD 3.3 billion, including 11 toll road projects, renewable energy, plantations, optical fiber, and airports.
The PINA Center for Private Investment facilitation unit works closely with BKPM, in this case having a role to attract potential foreign investors by conducting various roadshow activities. The Ministry of PUPR and the Ministry of BUMN support the PINA Center for Private Investment in dealing with BUMN as the facilitated project owner. Therefore, the Toll Road Regulatory Agency (BPJT) of the Ministry of Public Works and Public Works also assisted the PINA Center for Private Investment in mapping issues related to the SOE sector facilitated by the PINA Center for Private Investment.
The presence of the Government's Non-Budget Investment Financing (PINA) Center for Private Investment is an innovation that is the key word in encouraging creative financing to sustain very massive infrastructure financing. Without innovation, financing will be difficult to realize the target of infrastructure development in all regions of Indonesia.
In the future, it is hoped that the PINA Center for Private Investment will continue to be able to build innovative financing ecosystems so that it can support accelerated development and quality economic growth in Indonesia
Meanwhile, PT Wijaya Karya (Persero) Tbk and PT Jasa Sarana signed a preliminary agreement with PT ILB, where the funding structure uses customized supply chain financing with a total value of Rp 5 trillion for PT Wijaya Karya (Persero) Tbk and Rp 1 trillion for PT Facility Services.
