Government Measures to Mitigate Covid-19 Risk
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
Based on Government Regulation
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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