Page 131 - Buku BPJT 2020

Investment Facilitation for Business International Standard Concession
Entities and Financing Partners
1 The investment scheme for toll
roads is made attractive to keep
increasing domestic and foreign
investors’ interest in it.
2 Business entities face various
risks of liquidity mismatch, ranging
from land bailout payments to
BADAN PENGATUR JALAN TOL be properly mitigated so that the
negative cash flows once toll roads
are in operation. These risks must
investment climate in the toll road
industry can be maintained.
In 2020, the Ministry of Public
3
Works and Housing has issued a
regulation on compensation for
motorized vehicle classes changes
and toll road fare adjustments.
The compensation is given as
a concession extension to a
maximum of 50 years and cash
compensation. This is regulated in
the Regulation of the Minister of
Public Works and Housing No. 19/
PRT/M/2020.
4 ITRA implemented a strategy to
facilitate investment for business
entities and financing partners by
refining the investment contracts
and establishing a financing pool.
BADAN PENGATUR JALAN TOL
Funding Source Diversification
Agreements
Until now, the toll road concession
agreement PPJT has well regulated the
aspects of cooperation. However, there
needs to be improvements since some
aspects must have firmer regulation,
including changes in the scope of
agreement, compensation for changes
in government policy, government
Hence, ITRA seeks to make toll road
guarantees, and land bailout refunds.
concession
or
(PPJT)
agreements
investment contracts with international
standards. A bankable and workable
business entity that can provide the best
service for road users.
investment contract will create a healthy
Jalan Tol Jakarta – Cikampek II (elevated). Cikampek South Side.
Transformasi Jalan Tol, Merajut Nusantara (Toll Road Transformation, Connecting The Nation)
Investment contract improvement
hopefully will result in agreements that
comply with sharia principles. This is
intended to attract investment interest
from the sharia segment with considerable
potential.
A funding source from Islamic financial
institutions can be an alternative for
within and outside the country, such as the
business entities in financing toll road
projects. Potential fund can come from
Hajj Financial Management and investment
management agencies or Sovereign Wealth
Fund (SWF) from Middle Eastern countries.
managed funds reached Rp143 trillion.
In 2020, the Hajj Financial Management
Based on the Sovereign Wealth Fund
Institute’s data, Kuwait Investment
Authority and Abu Dhabi Investment
Authority have managed funds of 533.7
billion US dollars and 579.6 billion US dollars
respectively as of January 2021.
Opportunities to increase toll road financing
participation from Islamic financial
institutions are wide open. This refers to
the fact that toll road financing is currently
dominated by conventional banking, i.e.
state-owned and private banks.
In 2020, financing for toll road projects
reached Rp71.59 trillion and Rp75.85
trillion from state-owned banks and
private banks, respectively. Meanwhile,
financingfrom international financial
institutions was recorded at Rp3.54 trillion.
Since 2016, state-owned Islamic banks
and private banks’ Islamic business units
have begun to join in toll road financing
syndicates.
Another financing scheme that has been
initiated includes CPF (Contractors’ Pre
Financing) or SCF (Supply Chain Financing).
In this scheme, the contractor and vendor
must first bear the construction cost. The
payment will be made after the project
is completed by the toll road business
entity. Several toll roads using the CPF
scheme include Terbanggi Besar-Pematang
Panggang-Kayu Agung Toll Road, Jakarta-
Cikampek Elevated Toll Road, and Jakarta-
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