23 SEPTEMBER 2019
Jakarta, September 23, 2019 - PT Penjaminan Infrastruktur Indonesia (Persero) as one of the SMVs under the Ministry of Finance of Indonesia today signed a Guarantee Agreement for the Semarang - Demak Toll Road Cooperation and Business Cooperation (PPP) scheme.
At the same time the Toll Road Concession Agreement for the Semarang - Demak Toll Road Project which was integrated with the Sea Wall was witnessed by the Minister of Finance of the Republic of Indonesia Sri Mulyani Indrawati and the Minister of Public Works and Public Housing of the Republic of Indonesia, Basuki Hadimuljono, at the Ministry of PUPR Building, Jakarta. This is a tangible manifestation of the support of the Ministry of Finance and IIGF in an effort to accelerate infrastructure development and encourage regional and national economic growth.
The Semarang - Demak Toll Road Concession Agreement was signed between the Head of BPJT Danang S. Parikesit and the Managing Director of the Semarang - Demak Toll Road Business Entity (BUJT), Handoko Yudianto, who was elected through a tender process as the Implementing Business Entity in the project with this PPP scheme.
Subsequently, the Guarantee Agreement was signed by Acting. PT PII President Director Muhammad Wahid Sutopo and PT PPSD Managing Director Handoko Yudianto, as well as the Regress Agreement were signed by the Minister of Public Works and Public Housing Basuki Hadimuljono with Acting. PII President Director. With the signing of this project, PT PII has provided Government guarantees for 11 toll road sector PPP projects with a total project value of Rp 118 trillion.
The Indonesian Minister of Finance Sri Mulyani Indrawati expressed his support and appreciation to the Minister of PUPR RI Basuki Hadimuljono for his commitment to encourage the acceleration of infrastructure development in Indonesia through alternative financing schemes that do not burden the state budget through the PPP scheme for toll road infrastructure and other public works infrastructure.
Semarang - Demak toll road is one of the National Strategic Projects (PSN) with a total length of 27 km. Integrated with the Sea Wall located in Semarang City to Demak Regency, the scope of the signed Semarang - Demak Toll Road project covers construction of 16.3 km (out of a total of 27 km) and operation (27 km in total) by BUJT. This toll road will be the first multifunctional toll road because it will be integrated with the construction of a sea dike to overcome the problem of tidal floods that often hit the Semarang area.
With the support of the Ministry of Finance of the Republic of Indonesia and the Ministry of Public Works and Housing, to date PT PII has provided guarantees for 11 PPP-themed toll road projects. With a total of 21 infrastructure projects under the PPP scheme guaranteed by PT PII, it shows that the PPP scheme has been successfully accepted by both the community and investors.
PPP is a solution to accelerate infrastructure development in Indonesia, to build faster. Infrastructure improvements significantly impact improved connectivity, and this project is a collaborative work in addressing infrastructure needs to drive change. The implementation of PPP, including Government guarantee through PT PII, can increase Indonesia's credibility in the eyes of the world, because it illustrates Indonesia's ability to be an investor-friendly country, so that in the future it can attract investment, especially in infrastructure, which not only benefits investors, but also Indonesia and all its people.