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PT PII Gives Guarantee to the Solo - Yogyakarta - NYIA Kulon Progo Toll Road Project

09 September 2020


Jakarta, 10 September 2020 - PT Penjaminan Infrastruktur Indonesia (Persero) / PT PII - one of the Special Mission Vehicles (SMV) of the Indonesian Ministry of Finance - is always committed to supporting the Government's efforts to accelerate the development of infrastructure projects. Infrastructure development also contributes to efforts to overcome the impact of the COVID-19 pandemic, as an effort to restore the national economy.

Witnessed by the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono, Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia and Chairman of the Financial Services Authority (OJK) Wimboh Santoso, PT PII on the day Wednesday (09/09) yesterday signed the Guarantee and Regress Agreement for the Public Private Partnership (PPP) project, namely the Solo - Yogyakarta - NYIA Kulon Progo Toll Road, at the Auditorium of the Ministry of PUPR, Jakarta. This project is expected to have a major impact on improving the economy through increased connectivity between regions, especially those used as logistics, tourism, access roads to ports and airports as well as savings in operational vehicle costs (BOK) and the value of travel time.

The cooperation scheme for the 96.5 km toll road project is Design-Build-Finance-Operate-Maintain-Transfer (DBFOMT) with a concession period of 40 years from the Commencement of Work Order (SPMK). The purpose of the construction of this toll road infrastructure project is to improve accessibility between Solo, Yogyakarta, and Kulon Progo, including serving access to NYIA Kulon Progo Airport, in addition to increasing the development of areas that are traversed by toll roads and supporting increased regional economic growth. In addition, the indirect benefit of this project is an increase in employment due to project development.

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, in his direction, said that the construction of the Solo - Yogyakarta - NYIA Kulon Progo Toll Road project is very crucial for the Yogyakarta and Solo regions. In addition to reducing costs, the construction of infrastructure projects also changes the behavior of life and the economy of the community.

On the same occasion, the Indonesian PUPR Minister Basuki Hadimuljono thanked the Coordinating Minister for Maritime and Investment Affairs and the Ministers, institutions and other corporations for the excellent synergy in convincing investors for the construction of infrastructure projects that have been implemented, including the Solo Toll Road project. - Yogyakarta - NYIA Kulon Progo, so that it has an impact on the availability of jobs and increased national economic recovery.

With the signing of the guarantee agreement and regression agreement on the project, the Ministry of Finance through PT PII will provide guarantees which include the risk of delays in land acquisition, the risk of delays in returning the Land Graft Fund (DTT), the risk of delay in tariff adjustment, temporary political risk and permanent political risk. . The guarantee provided by PT PII is intended to provide certainty and comfort for investors in investing in the toll road project.

Meanwhile, President Director of PT PII M. Wahid Sutopo said that the guarantee provided by PT PII for this project is one of the facilities from the Ministry of Finance to improve investment feasibility and comfort for investors. With the signing of this project, PT PII has provided guarantees for 23 PPP projects throughout Indonesia. This is of course inseparable from the excellent cooperation with the Cooperation Project Responsible Agency, especially the Ministry of PUPR, and the strong support from the Ministry of Finance in developing government guarantee schemes for PPP projects.

"With the PPP scheme and the guarantee by PT PII, it is hoped that this project can be well developed and maintained so that it can be useful in increasing inter-regional connectivity and economic competitiveness of the people in the provinces of Yogyakarta and Central Java, as part of a sustainable effort for recovery and national economic development" , close Sutopo.

For information, the PUPR Ministry is one of the PJPKs that are aggressively using the PPP scheme in road sector infrastructure projects, as evidenced by the signing of 12 toll road projects and 1 non-toll road with the PPP scheme. Until now, PT PII has been actively supporting the Ministry of PUPR to continue developing projects in the Road sector and other PUPR sectors through the PPP scheme.

PT PENJAMINAN INFRASTRUKTUR INDONESIA (PERSERO) / INDONESIA INFRASTRUCTURE GUARANTEE FUND (IIGF)

PT Penjaminan Infrastruktur Indonesia (Persero) is a Special Mission Vehicle (SMV) of the Ministry of Finance of the Republic of Indonesia which has the mandate as the Government Guarantee Provider, the Government Cooperation Scheme with Business Entities (PPP). PT PII also provides guarantees for BUMN loans to international financial institutions and plays a role in assisting project preparation and transaction assistance (Project Development Facility) on 5 PPP scheme infrastructure projects in the Health, Road and Transportation sectors.

As of September 2020, PT PII has been approved for guarantee for a total of 26 projects, namely 23 PPP projects and 3 Non-PPP projects. The 23 PPP projects consist of 6 sectors, namely the Road Sector Project, namely 12 toll roads (Batang - Semarang, Balikpapan - Samarinda, Pandaan - Malang, Manado - Bitung, Jakarta - Cikampek II Elevated, Krian - Legundi - Bunder - Manyar, Cileunyi - Sumedang - Dawuan, Serang - Panimbang, Probolinggo - Banyuwangi and Jakarta - Cikampek II South Side, Semarang - Demak, Solo - Yogyakarta - Nyia Kulon Progo) and 1 Non-Toll Road sector Project (Jalan Lintas Timur South Sumatra), 4 Telecommunication Sector Projects (West, Central and East Palapa Ring Packages and Multifunctional Satellite), 1 Electricity Sector Project (PLTU Batang), 3 Drinking Water Sector Projects (Umbulan SPAM, Bandar Lampung SPAM and West Semarang SPAM), and 2 Transportation Sector Projects (Makassar Railway - Parepare and Labuan Bajo Airport). Meanwhile, 3 Non-PPP Projects, namely the Mandalika Special Economic Zone (KEK) Project and the PT PLN (Persero) Hydropower Program project and the Patuha Unit 2 and Dieng 2 PLTP projects with a total investment value exceeding IDR 210 trillion.

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