PPP Project Ceremony West Semarang Water Supply

12 DECEMBER 2018

Semarang, December 12, 2018 - Today, the inauguration of the Cooperation Project between the Government and Business Entities (PPP) of the West Semarang Drinking Water Supply System (SPAM) between the Regional Water Supply Company (PDAM) of Tirta Moedal, Semarang City as the Person in Charge of the Cooperation Project (PJPK ) with PT Air Semarang Barat as the Executing Agency at the Office of PDAM Tirta Moedal.

The Ceremony of the project was carried out by the Indonesian Minister of Finance Sri Mulyani Indrawati and the Indonesian Minister of Public Works and Housing, Basuki Hadimuljono, accompanied by the Secretary General of the Indonesian Ministry of Home Affairs, Mayor of Semarang represented by Deputy Mayor, President Director of PT Sarana Multi Infrastruktur (Persero), and Managing Director of PT Indonesia Infrastructure Guarantee (Persero).

West Semarang SPAM is a SPAM development project planned as a SPAM pilot project with PPP funding schemes in Indonesia. West Semarang SPAM will solve the problem of the clean water crisis and land subsidence due to groundwater use in the city of Semarang. This project will use water from the Jatibarang Dam to resolve the problem of the lack of raw water supply in the city of Semarang, which has been relying on supplies from Kudus Regency.

The purpose of the project is to provide drinking water to 31 urban villages in 3 sub-districts with an estimated 60,000 families that have not been connected to the Drinking Water Supply System (SPAM) network in the West Semarang, Tugu, and Ngaliyan areas. This project is expected to resolve the clean water crisis and reduce groundwater use in the city of Semarang.

Indonesian Finance Minister Sri Mulyani Indrawati stated that the Government warmly welcomed the private initiative in its participation in the construction of infrastructure projects, especially in the Water Supply sector for the needs of many people.

"In accordance with the Government's focus, the acceleration of evenly distributed infrastructure development is still prioritized, in addition to development in Education and Human Resources development. In the midst of the limitations of the State budget, a positive synergy between the Government and Business Entities is needed to realize it, and the PPP scheme is a strategic solution, "said the Minister.

The Managing Director of Indonesian Infrastructure Guarantee (Persero) ("PII") Armand Hermawan said that the West Semarang SPAM project was the third project in the water sector after Umbulan East Java SPAM and Bandar Lampung SPAM were granted guarantees by PT PII and were a form of commitment and the consistency of IIGF in supporting the Government to realize the acceleration of national infrastructure development.

"With the inauguration of the West Semarang SPAM project today, it is one proof that the PPP scheme is attracting the interest of the private sector in the construction of infrastructure projects where PT PII participates in providing guarantees in the project. Besides that, of course this project will soon provide benefits for the community in getting proper clean water for the community, especially the city of Semarang, "explained Armand.

President Director of PT Sarana Multi Infrastruktur (Persero) ("PT SMI") Emma Sri Martini stated that the West Semarang SPAM project was one of the strong commitments of the Ministry of Finance (Kemenkeu) to accelerate infrastructure provision by providing support in the form of: Project Development Facility through PT SMI . In this Rp1.1 trillion project, PT SMI oversees its important role, namely: (1) acting as the Ministry of Finance's assignment executor in providing project development and transaction facilities, (2) ensuring this project meets the appropriate feasibility level - feasible, bankable, compliance, and (3) ensuring the auction process for a fair, transparent and competitive business entity.

The West Semarang SPAM project is a reflection of PT SMI's commitment to achieving the Sustainable Development Goals (SDGs) in Indonesia. Support for achieving the SDGs is specifically focused on: (1) 6th Aspect of SDGs; Decent Water and Sanitation, (2) Aspects of the 17th SDGs; Partnership for achieving goals. Not only that, PT SMI's consistency with the SDGs is also reflected in other drinking water sector projects in Indonesia worth more than Rp3.8 trillion, such as in Umbulan, East Java, Pekanbaru, and Bandar Lampung.