2022 State Budget: Fiscal Policy and Structural Reform
New Guarantee Schemes for Non-PPP Projects
Guarantee on SOE Direct Lending from International Financial Institutions (IFIs)
The Government had issued Presidential Regulation No 82/2015 and Ministry of Finance Regulation No 189/2015 to provide guarantee for SOE
Direct Lending from IFIs for the Development of Infrastructure Projects.
The objective of this guarantee is to provide credit enhancement in terms of low interest rate and long tenor financing,
State finance soundness
Guarantee for Regional Infrastructure Financing Provision
with 3 main principles:
Fiscal sustainability
Best practice of fiscal risk
management
Regulation
Based on Government
No. 95/2015 and Ministry of Finance
Regulation No. 232/2015, Minister of
Finance assigns PT SMI (Sarana Multi
Infrastruktur) to carry out functions in
providing loan to local government, as
previously carried out by PIP
(Government Investment Center).
The Government had issued Ministry of
Finance Regulation No 174 of 2016 to
provide guarantee to PT SMI on the
assignment of regional infrastructure
financing provision, by loan to local
governments that is transferred from PIP
to PT SMI, and new loan channeled by PT
SMI to the local government.
The objective is to give stimulus to the
acceleration of local infrastructure
development through the ease of access
to infrastructure financing and to boost
local economic growth, as well as to
provide alternative financing schemes in
order to meet local infrastructure
development needs and to reduce
reliance on state/local budget.
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