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PT PII Supports the Acceleration of West Java Logistics Infrastructure Through the PPP Scheme and Government Guarantee

14 AUGUST 2021

On (14/8) the Center for Excellence in BUMN Center Universitas Padjadjaran and the Institute for Transportation and Logistics (ITL) Trisakti together with the Representative Office of Bank Indonesia West Java Province held a national seminar on infrastructure forum Infrastructure Forum – Road to West Java Investment Summit with the theme “Logistics Infrastructure Support for Increasing Competitiveness and Acceleration of Economic Growth in West Java” which was carried out online.

The infrastructure activities of this forum were carried out with the aim of discussing the steps needed so that the plan for accelerating infrastructure development is implemented properly and has an impact on the economy and progress of West Java because infrastructure is a driving wheel that has an important role in the economy as well as improving the welfare and quality of life of the community. This activity is also a form of concern from all stakeholders in West Java about how to accelerate infrastructure development and jointly synergize in infrastructure development in Tatar Priangan, as well as synergize between North and South West Java.

Also attending was the Governor of West Java, Ridwan Kamil who in his speech said that the contribution of West Java's economic growth is one of the largest in Indonesia and in infrastructure investment, West Java Province is in need of 28 new hospital projects for a better service ratio, 18 projects Water Resources, 9 Regional Water Treatment Plant projects, 10 Toll Roads under construction and 7 in planning, 18 Transportation projects, 26 Energy Projects and 5 Solid Waste Treatment Plant projects.

"We have the concept that in developing West Java we cannot rely solely on the APBD, because we have 8 doors that we must pursue, namely the Regency/City APBD, Provincial APBD, APBN, Regional Loans, CSR, Regional Bonds and we are currently pushing the PPP/PPP scheme. as wide as possible such as in Legok Nangka as well as the construction of hospitals and others as well as the Community Fund," continued Ridwan Kamil in his speech.

PT Penjaminan Infrastruktur Indonesia (Persero)/PT PII – as one of the Special Mission Vehicles (SMV) of the Indonesian Ministry of Finance – was present at the panel session represented by the President Director of PT PII, Muhammad Wahid Sutopo together with the Special Staff of the Minister of Transportation Otto Ardianto, Head of Representative Bank Indonesia West Java, Dr. Herawanto and Professor of the Faculty of Economics and Business, Universitas Padjadjaran Prof. Dr. Ina Primiana.

Special Staff for Financing and Investment of the Ministry of Transportation, Otto Ardianto emphasized that the Government is not only building infrastructure but building intermodal integration so that it can be connected. It was also stated that the investment needs of the transportation sector reached Rp. 1,300 trillion, while due to the pandemic, only Rp. 266 trillion was realized, so Creative Financing schemes such as PPP schemes and guarantees assisted by PT PII were needed.

In this panel discussion session, the President Director of PT PII, M. Wahid Sutopo also said that the need for infrastructure financing and the limited state budget required private investment through creative financing schemes, one of which was through PPP. Ministry of Finance support is provided for the PPP scheme, namely the Project Development Facility, Land Acquisition Scheme (LMAN), Long-Term Financing Scheme (PT SMI) and the Government Guarantee for Infrastructure mandated to PT PII which are expected to support the bankability of this project and provide convenience for investors.

"The role of infrastructure for handling the Covid-19 pandemic is increasingly vital, one of which is through the development of a Teaching Hospital by the University of Padjadjaran, as well as toll road infrastructure in accelerating logistics travel times such as providing oxygen from producers in West Java and East Java to areas in need," he continued. Sutopo. The toll road infrastructure supported by PT PII such as the Cileunyi Sumedang Dawuan (Cisumdawu) Toll Road has a positive impact on increasing accessibility to the North West Java Rebana area and accelerating the access of Bandung residents to Kertajati Airport. The Jakarta Cikampek Elevated & South Japek II Toll Roads are an access option to facilitate the flow of passengers and goods between Jakarta and industrial areas along the road. In addition, PT PII is currently processing guarantee support for the Gedebage – Tasikmalaya – Cilacap Toll Road which will open the access bottleneck to the southern part of West Java (Garut, Tasikmalaya, Ciamis, Pangandaran and Cilacap).

“PT PII's collaboration with universities through joint activities with the Unpad BUMN Center of Excellence, ITL Trisakti and the University Network for Indonesia Infrastructure Development (UNIID) will continue to be encouraged to assist the West Java Regional Government and related agencies in terms of capacity building and understanding of creative financing schemes. and potential development regional infrastructure projects”, concluded Sutopo. Through the PPP creative financing scheme and various strategic efforts above, it is hoped that PPPs can be an option for the Regional Government in West Java in building the infrastructure needed by the community as a means of economic recovery in West Java.

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