Inflation Control and Financial Facilities Strategy
Government Guarantee For Basic Infrastructure Development
Reflects strong commitment to national development planning
Government Guarantee Program
Contingent Liabilities from Government Guarantee as of Q2 2020 **
Credit
Guarantee
Business Viability
Guarantee (BVG)
PPP
Guarantee
Political Risk
Guarantee
I Toll road Full credit guarantee for PT Hutama
Karya's debt payment obligations for
development of Sumatra Toll Roads.
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
Documents
Exposure/
Outstanding
(USD bn)
-
Clean Water Guarantee for 70% of PDAM'S
debt principal payment obligations.
1
Coal Power Plant 10,000 MW Fast Track Program (FTP 1)
16
1.41
-
2
Clean Water Supply Program
6
the
0.01
3
Direct Lending from International Financial Institution to
SOES
6
1.70
4
Sumatra Toll Road
10
2.99
5
Renewable energy, Coals & Gas Power Plant 10,000 MW
(FTP 2)
7
3.86
6
Public-Private Partnerships (PPP)
7
4.73
7 Regional Infrastructure Financing
1
0.19
8
Public Transportation (Light Rail Transit)
1
0.24
9 Electricity Infrastructure Fast Track Program (35GW)
6
4.36
Total
60
19.49
Infrastructure Full credit guarantee on SOE'S
borrowing from international financial institution
& guarantee for PT SMI's local infrastructure
financing.
Public Transportation (Light Rail Transit) Full
credit guarantee for PT Kereta Api Indonesia's
debt payment obligations for the development of
LRT Jabodebek.
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
1
From 2008 to Q2-2020 **, the government has issued 88 guarantee documents
with total value of USD40.07 billion, there were 28 guarantee documents worth
USD3.82 billion have been expired.
The Maximum Guarantee Limit for the period 2020-2024 is set at 6% of GDP.
Beginning in 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.
**) As of end June 2020; currency conversion of IDR14,302.00/USD1 and IDR16,080.46/EUR1
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