Indonesia major infrastructure projects seal $7.7b financial deal

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Photo by Cabinet Secretary

JAKARTA (TheInsiderStories) – Indonesian government on Wednesday (June 8) announced financial close for a number of major infrastructure projects with combined value of Rp101.95 trillion ($7.7 billion). The major project’s signing ceremony will held on May 9 in front of President Joko Widodo at the State Palace.

The projects comprised of financial close for mega coal-fired power plant (PLTU) Batang worth $4 billion (Rp64.8 trillion) and a number of toll road projects with combined investment of Rp49 trillion ($3.70 billion).

The Coordinating Minister for Economy Darmin Nasution said, the procession and signing of milestone of six strategic infrastructure projects and national priorities in the scheme the Government and Enterprises partnerships. He added, the financial close of Central Java power plant and three toll projects received government guarantees from PT Penjaminan Infrastruktur Indonesia (PII). 



The coal-fired Power Plant Project 2×1.000 megawatt (Mw) with a total investment of USS4 billion  (Rp52 Trillion) win funding from the Japan Bank for International Cooperation (BIC) and several syndicate of international commercial banks to PT Bhimasena Power Indonesia (BPI).

Five toll project has raised the financial close are Manado-Bitung toll project stretches 39 km, 99 km of Balikpapan, Malang – Pandaan with length 38 km, Serpong-Balaraja 30 km, and Terbanggi Besar – Pematang Panggang – Kayu Agung 185 km, with a total project value of approximately Rp49 trillion.

“Today is a clear evidence of serious measures the Government serious in working accelerating the development of electricity infrastructure and the fulfillment of the road sector which is a key sector in driving the economic growth of our country,” said Nasution.

Minister Public Works and Housing Basuki Hadimuljono states that “The signing of this toll road project is clear evidence that in cooperation with business entities and the government.”

President Director of PT PI, Sinthya Roesly explained, that based on Presidential Decree No. 38 of 2015, there were 19 economic infrastructure sectors and social infrastructure that can be cooperated and assurance between government and private, among others, electricity and road sectors. PT PI has given its approval guarantee for four infrastructure sectors, namely electricity, water, toll roads and telecommunication.

“With a government guarantee through PT PII, the certainty of project funding from private participation can be further increased so that the Government can realize the provision of infrastructure that is not only rely on government’s limited budget,” said Sinthya.



 

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Source: The Insiderstories
Indonesia major infrastructure projects seal .7b financial deal

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