Financial Clise Of Central Java Power Plant 2 X 1.000 MW And Guarantee Agreement Signing Of PPP Toll

09 JUNE 2016

The signing ceremony for the milestone of 6 (six) priority infrastructure projects under the Public Private Partnership (PPP) scheme was held at the Presidential Palace on 9 June 2016, which are the Financial Close of Central Java Power Plant (CJPP) and Guarantee Agreement signing for 5 (five) toll road projects. CJPP projects obtained Government Guarantee through the Ministry of Finance and Indonesia Infrastructure Guarantee Fund (IIGF) whereas 3 (three) of 5 toll road projects named Pandaan-Malang, Batang-Semarang, Balikpapan-Samarinda, obtained government guarantees through IIGF.

The CJPP project is a 2 x 1,000 MW coal-fired power plant valued US$ 4 billion or more than Rp52 trillion which has reached Financial Close on 6 June 2016 and among the first Indonesia PPP project developed for power sector. PT Bhimasena Power Indonesia as a Business Entity obtained the project funding from Japan Bank for International Cooperation (“JBIC”) and other international banks as well. Along with the Financial Close, the project is expected to be finished on time.

On the same occassion, there was also Concession Agreement signing between Indonesia Toll Road Authority (“BPJT”), Ministry of Public Work and Housing and the winning bidder, Guarantee Agreement between the winning bidder and IIGF, also Recourse Agreement between IIGF and Ministry of Public Work and Housing as the Contracting Agencies for 3 (three) toll roads, Manado-Bitung, Balikpapan-Samarinda and Pandaan-Malang. The toll projects were key infrastructure for government’s programs to improve connectivity across cities and regions.

The whole series of event witnessed by the President Joko “Jokowi” Widodo, Coordinating Minister for Economic Affair as the Chairman of Committee for Acceleration of Priority Infrastructure Delivery, State Minister for Development Planning, Minister of Finance, Minister of Energy and Mineral Resources, Minister of Public Work and Housing, Minister of State Owned Enterprise and Minister of Agricultural and Spatial.

IIGF’s President Director, Sinthya Roesly explained that based on Presidential Regulations No 38 of 2015, there are 19 (nineteen) economy and social infrastructure sectors which can be cooperated and given guarantee such as electricity sector and road sector. “The Government guarantee through IIGF can increase the certainty of project funding from private sector participation so that the Government can realize the provision of infrastructure without solely rely on government’s limited budget”.