2022 State Budget: Fiscal Policy and Structural Reform
Government Guarantee For Basic Infrastructure Development
Reflects strong commitment to national development planning
Government Guarantee Program
Contingent Liabilities from Government Guarantee as of Q3 2021**
⚫ Power (Electricity) - Full credit guarantee for PT PLN's
debt payment obligation under FTP 1 10,000MW and
35GW programs*.
No.
Central Government Guarantee for Infrastructure
Programs
Guarantee
Document
Credit Outstanding
/Investment Exposure
(billion)*
-
• Clean Water Guarantee for 70% of PDAM's debt
principal payment obligations.
1
Credit
Guarantee
Toll road - Full credit guarantee for PT Hutama Karya's
debt payment obligations for the development of
Sumatra Toll Roads.
2
Coal Power Plant 10,000MW Fast Track Program (FTP 1)
Clean Water Supply Program
10
USD 0.87
6
USD 0.00
3
Direct Lending from International Financial Institution
to SOES
10
USD 1.83
Infrastructure Full credit guarantee on SOE's borrowing
from international financial institution & guarantee for
PT SMI's local infrastructure financing.
4
Sumatra Toll Road
10
USD 3.13
5
Renewable energy, Coals & Gas Power Plant 10,000 MW
7
USD 3.98
(FTP 2)
⚫ Public Transportation (Light Rail Transit) Full credit
guarantee for PT Kereta Api Indonesia's debt payment
obligations for the development of LRT Jabodebek.
6
Public-Private Partnerships (PPP)
7
USD 6.11
7
Regional infrastructure financing
1
USD 0.21
8
Public Transportation (Light Rail Transit)
1
USD 0.68
9
Electricity Infrastructure Fast Track Program (35 GW)
6
USD 5.09
Business Viability
Guarantee (BVG)
Total
58
USD 21.89
PPP Guarantee
Political Risk
Guarantee
⚫ Power (Electricity) - Guarantee for PT PLN's obligations
under Power Purchase Agreements with IPPS (off-take
and political risk) under FTP-2 10.000MW and 35GW
programs*
Infrastructure
Guarantee for Government-related
entities obligations (line ministries, local governments,
SOES, local SOEs) under PPP contracts/agreements
=
⚫ Infrastructure Guarantee against infrastructure risks
for National Strategic Projects (Presidential Decree
No.58/2017) which are not covered by other type of
guarantees
*) MOF provides both credit guarantees and BVGS for 35GW program
Source: Ministry of Finance
From 2008 to Q3-2021**, the government has issued 92 guarantee documents with
total value of USD41.80 billion, there were 32 guarantee documents worth USD5.08
billion have been expired.
The Maximum Guarantee Limit for the period 2020-2024 is set at 6% of GDP.
Starting from 2008 the Government has allocated a contingent budget with respect to
these guarantees. Any unused budget allocation may be transferred to a guarantee
reserve fund. This reserve fund, together with the relevant annual budget allocations,
serves as reserves for any claim that arises from these guarantees.
**) Currency conversion of IDR14,496.00/USD1 and IDR17,254.61/EUR1 (as of end June 2021)
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