Jakarta, 27 February 2024 – PT Penjaminan Infrastruktur Indonesia (Persero) / PT PII, one of the Special Mission Vehicles (SMV) of the Indonesian Ministry of Finance provides a guarantee for one of the road sector infrastructure projects under the Government Cooperation with Business Entities (KPBU) scheme, namely Kediri – Tulungagung Toll Road Project which crosses Kediri City, Kediri Regency and Tulungagung Regency, East Java. PT PII's support was marked by the signing of a Guarantee Agreement carried out by the Main Director of PT PII M. Wahid Sutopo with the Director of PT Surya Sapta Agung Tol Istata Taswin Siddharta as the appointed Toll Road Business Entity, as well as a Regress Agreement between the Minister of PUPR RI Basuki Hadimuljono as the Insurer Answer to Collaboration Projects with the Main Director of PT PII M. Wahid Sutopo in Jakarta, Tuesday (27/2).

On this agenda, a Toll Road Concession Agreement (PPJT) was also carried out by the Head of BPJT of the Indonesian PUPR Ministry, Miftachul Munir, with the Main Director of PT Surya Sapta Agung Tol Istata Taswin Siddharta as the Toll Road Business Entity.

On this occasion, PUPR Minister Basuki Hadimuljono said that the construction of the Kediri - Tulungagung Toll Road was a very strategic business decision because according to him this toll road would connect the Trans Java Toll Road which was already operating with the Pansela Route (South Coast).

"Thank you for this collaboration, because it has accelerated the government's efforts to improve connectivity in East Java. And thanks to good cooperation between these stakeholders, the construction of the Kediri – Tulungagung toll road will definitely be carried out quickly. "The PUPR Ministry hopes that the construction of this toll road will bring blessings and benefits to the community," said Minister Basuki.

Meanwhile, PT PII President Director M. Wahid Sutopo said that through the guarantee agreement and regress agreement for the toll road project with a guarantee period of 15 years and a guarantee exposure of IDR 1.78 T, PT PII will provide guarantees covering delays in land acquisition, delays in adjustments tariffs, as well as temporary politics and permanent politics.

"The guarantee provided by PT PII is intended to provide certainty and comfort for investors in investing in the toll road project. This is important because the PPP Scheme which is part of Innovative Financing in order to accelerate the development of road infrastructure which is currently very much needed, where this toll road is a connecting road to and from Kediri Airport, also aims to facilitate public access to the South East Java area and support the economy of the surrounding area, including the tourism sector," said Sutopo.

Sutopo also added that his party appreciates various parties, especially the Ministry of Finance, the Ministry of PUPR as PJPK, BPJT, as well as PT Surya Sapta Agung Tol as the Toll Road Business Entity and PT Gudang Garam Tbk as the initiator and winner of the project auction, for their support and contribution to the ratification of several agreements. which marks the start of construction of this section of the Kediri Tulungagung Toll Road. "PT PII's commitment to continue to encourage innovative financing schemes will continue to be implemented, especially to help with the burden on the APBN. "PT PII also openly supports the PUPR Ministry, other Ministries/Institutions and Regional Governments that will develop projects through innovative financing schemes," added Sutopo.

President Director of PT PT Surya Sapta Agung Tol Istata Taswin Siddharta said that this 44.17 km long project is planned as part of the Trans Java toll road system and will support access to Dhoho Kediri Airport which has also been completed by PT Gudang Garam Tbk., as Project Initiator.

"The construction of the Kediri-Tulungagung toll road section is also under the East Java (Jatim) Province economic development acceleration program stipulated by Presidential Decree 80 of 2019, concerning the acceleration of economic development in several regions in East Java. "We are very grateful to be able to contribute to one of the National Strategic Projects, especially in developing East Java," he said.

Istata also believes that the toll road section which was built with an investment value of Rp. This 10.47 T can be increasingly traversed by motorists from year to year, especially regarding access to Dhoho Airport. "Based on BPJT projections, the daily traffic volume on the Kediri-Tulungagung Toll Road can continue to increase significantly every 10 years until the concession period ends in the next 50 years, so we are confident that this toll road section will have a significant impact on the community, especially in terms of improving the economy of the community in the area. Kediri and Tulungagung," concluded Istata.

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