08 MARCH 2022
Jakarta, March 8, 2022 – Indonesia Infrastructure Guarantee Fund/IIGF today, Tuesday (8/3), signed the Guarantee and Regress Agreement for the Government Cooperation with Business Entity (PPP) project for the Gilimanuk – Mengwi Toll Road which The event was held in Denpasar, Bali with the Minister of PUPR RI Basuki Hadimuljono and the President Director of PT Tol Jagat Kerthi Bali Tito Sulistio, witnessed by the Governor of Bali Wayan Koster.
As one of the Special Mission Vehicles (SMV) of the Ministry of Finance of the Republic of Indonesia, IIGF is always committed to supporting the Government's efforts in accelerating the development of infrastructure projects with alternative financing schemes, including the PPP scheme. The acceleration of infrastructure development is also an important step for the Government in order to overcome the impact of the COVID-19 pandemic for the recovery of the national economy.
The 96.84 km toll road project is designated as a National Strategic Project (PSN) based on the Coordinating Minister for Economic Affairs Regulation No. 7 of 2021 which aims to facilitate traffic from West to East (and vice versa) of Bali Island and as access to tourist areas and strategic development areas that are being developed.
The Minister of PUPR RI Basuki Hadimuljono thanked all those involved, namely the Ministry of Finance who had provided an alternative in encouraging the acceleration of infrastructure development through the PPP scheme and also fiscal tools, one of which was guaranteeing this project through IIGF and PT Tol Jagat Kerthi Bali and the consortium involved. involved so that this project can be successfully signed which will later be felt by the community and also have an impact on the availability of jobs and increasing national economic recovery.
“The Gilimanuk-Mengwi Toll Road is one of three national strategic projects (PSN) that must be implemented immediately. In the construction of this toll road, the most important thing is that it is always maintained or the harmony of the construction of this toll road must be adapted to environmental conditions. The construction of this toll road will continue to be monitored so that it is ready for operation in 2024.”
"It should be remembered that the construction of the Gilimanuk-Mengwi Toll Road must also be followed by governance that needs to be maintained, both in terms of financing and in its implementation. This is important so that the toll roads that will be operated later have good quality and can be felt by the community.”
For information, with the signing of the guarantee agreement and the regress agreement on the project, the Ministry of Finance through fiscal tools, namely IIGF, will provide guarantees that include the risk of delays in land acquisition, the risk of delays in toll tariff adjustments, temporary and permanent political risks. The guarantee provided by IIGF is intended to provide certainty and comfort for investors in investing in the toll road project. The alternative financing provided by the Ministry of Finance is expected to assist in accelerating infrastructure development so that it will increase economic growth whose benefits can be directly felt by the community.
IIGF President Director M. Wahid Sutopo at the event said that the guarantee provided by IIGF for this project was one of the facilities from the Ministry of Finance to increase the feasibility and convenience of investment. With the PPP scheme and guarantee by IIGF, it is hoped that this project can be developed and maintained properly so that it can provide the widest possible benefits to the community.
"The signing of the Gilimanuk - Mengwi Toll Road project today is the second project signing for IIGF in 2022 after previously in January 2022 PT PII had signed a guarantee agreement on the Gedebage - Tasikmalaya - Cilacap Toll Road project so that the total project guarantee for IIGF currently is a total of 39 infrastructure projects. IIGF's commitment to continue to encourage alternative financing schemes will continue to be carried out, mainly to help the burden of the State Budget which until now is still focusing on the National Economic Recovery. IIGF also openly always supports the Ministry of PUPR, other ministries and local governments that will develop PPP scheme projects," concluded Sutopo.