2022 State Budget and Fiscal Incentives Presentation
Government Guarantee For Basic Infrastructure Development
Reflects strong commitment to national development planning
Credit
Guarantee
Business Viability
Guarantee (BVG)
PPP
Guarantee
Political Risk
Guarantee
Government Guarantee Program
Power (Electricity) - Full credit guarantee for PT
PLN's debt payment obligation under FTP 1
10,000MW and 35GW programs*.
Clean Water
-
Guarantee for 70% of PDAM'S
debt principal payment obligations.
-
I Toll road Full credit guarantee for PT Hutama
Karya's debt payment obligations for
development of Sumatra Toll Roads.
Infrastructure Full credit guarantee on SOE'S
borrowing from international financial institution
& guarantee for PT SMI's local infrastructure
financing.
Contingent Liabilities from Government Guarantee as of Q3 2021**
No.
Programs
Central Government Guarantee for Infrastructure Guarantee
Document
Credit Outstanding
/Investment Exposure
(billion)*
1
the
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
4
Sumatra Toll Road
10
USD 3.13
5
Renewable energy, Coals & Gas Power Plant 10,000 MW
7
USD 3.98
(FTP 2)
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
Total
58
USD 21.89
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 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.
1 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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