12 AUGUST 2021
Indonesia Infrastructure Guarantee Fund (IIGF) – which is one of the Special Mission Vehicles (SMV) of the Ministry of Finance Republik of Indonesia – has received The Asset Triple A Infrastructure Award 2021 as “PPP Agency of the Year 2021” for the third time since 2019, for the Institution Award category from The Asset, one of the integrated international media that focuses on the financial industry in Asia.
In this award, IIGF is included in the Institution Award category in the Asia Pacific region selected as PPP Agency of the Year along with Vena Energy as Renewable Energy Sponsor of the Year, Asian Development Bank (ADB) as Multilateral Agency of the Year, Societe Generale as ESG Infrastructure Bank of the Year, DBS Bank as Project Finance Advisory House of the Year, Allen & Overy as Project Finance Law Firm of the Year, China Lianhe Credit Rating as Project Finance Rating Agency of the Year – China, MARC as Project Finance Rating Agency of the Year – Malaysia.
The Triple A Infrastructure Award in the Institution Award category is for global appreciation and recognition to institutions that have given significant impact and changes on the main infrastructure development in Asia. With an award as PPP Agency of the Year Award 2021, IIGF has received regional recognition in the Asia Pacific as an institution that plays a significant role in advancing the implementation of PPP in the provision of infrastructure in Indonesia. The Asset considers that the guarantee and the active role of IIGF increase the certainty of private participation in financing infrastructure development in Indonesia. This can help the Government through the development of a good transaction structure, increase the certainty of successful transactions with investors and help ensure the quality of infrastructure development.
"This award proves the contribution and strategic role of IIGF that has been acknowledged in Asia Pacific as an institution that is actively committed to encouraging the implementation of the Public Private Partnership (PPP) scheme in Indonesia. The achievement of IIGF is expected to further increase the confidence of investors and financial institutions in investing and financing infrastructure projects in Indonesia under the PPP scheme”. Said President Director of IIGF M. Wahid Sutopo after receiving the award.
In addition, Sutopo stated that in the midst of a situation where the Government is in need of the State Budget to focus on tackling Covid-19, the role of IIGF both as the SMV of the Ministry of Finance and as a PPP agency can help the Government encourage national economic recovery while continuing to accelerate infrastructure development through implementation of creative financing schemes such as PPP.
“This achievement is also inseparable from the efforts of all levels of IIGF and support from the Ministry of Finance as a shareholder and all stakeholders in the national PPP ecosystem. This achievement motivates IIGF to be able to continue to carry out this mandate and to actively contribute to assisting the Government in accelerating infrastructure development in Indonesia,” added Sutopo.
Various strategic initiatives have been taken by IIGF to actively encourage PPP as a solution for creative infrastructure financing schemes in Indonesia. One of them, IIGF together with several Ministries and Institutions, namely the Coordinating Ministry for the Economy, Coordinating Ministry for Maritime Affairs and Investment, Bappenas, Ministry of Finance, Ministry of Home Affairs, LKPP and BKPM, formed the PPP Joint Office/Indonesian PPP Joint Office as a center for communication and coordination between key stakeholders in PPP scheme infrastructure projects. To encourage PPP applications by Regional Governments, IIGF partners with several Regional Offices of the Directorate General of State Assets of the Ministry of Finance to formed PPP Corner to help promote and become a reference for Regional Governments to develop infrastructure potential with the PPP scheme.
Stakeholder capacity in preparing and implementing a PPP scheme is the key to the success of a PPP project. In this case, IIGF has the IIGF Institute, a work unit that actively conducts certified PPP education and training to stakeholders related to the implementation of the PPP scheme in Indonesia as well as forging strategic alliances with 35 national universities under the auspices of the University Network for Indonesia Infrastructure Development (UNIID) to carry out capacity building, research and advocacy regarding PPPs and other creative financing schemes.
Through various innovations, synergies and stakeholder support, PPP has become an option that should be considered for the Government in responding to the needs of national infrastructure development. Until 2021, there have been 28 infrastructure projects with PPP schemes in the Road, Transportation, Drinking Water, Electricity and Telecommunication sectors that have been developed and managed to get private investment. Through the role of IIGF as a provider of Government guarantees on PPP projects, it can increase investor and banking confidence in national PPP projects and 17 PPP projects are recorded have reached the Financial Close.