23 MAY 2024
PT Penjaminan Infrastruktur Indonesia (Persero) / PT PII is also involved in the 10th World Water Forum (WWF) 2024 series of activities. The 10th series of WWF activities will be held throughout 2023 until the peak event which will take place on 18-25 May at the Bali Nusa Dua Convention Center, Bali. Apart from corporate affairs, PT PII through the IIGF Institute -- a think-tank unit under the auspices of PT PII -- is involved in various discussion forums discussing the importance of support for water sector infrastructure, especially in the financing aspect of this international event.
The President Director of PT PII, M. Wahid Sutopo said that through PT PII's involvement in the series of WWF 2024 activities up to the peak of its implementation, it is hoped that it can strengthen joint collaboration in providing infrastructure in the water sector, with stakeholders, especially the private sector, investors and international lenders. It is hoped that improving water sector infrastructure can encourage prosperity and economic growth in society. "Providing clean water infrastructure is part of efforts to mitigate the impact of climate change in the form of land subsidence due to massive use of groundwater, which is currently being felt in several large cities in Indonesia. "Apart from that, developing the water sector can improve sanitation and public health," said Sutopo.
One of the forums that PT PII participated in was the Discussion Forum with the topic "Making the green investment case for innovation to achieve water resilience and improved governance" which was held on May 23 2024. In this forum the President Director of PT PII was a resource person together with the Director of International financial institutions for development- Environmental, project management & international development finance expertise in public and private sectors, Water, Economy, & Climate Change Global Lead World Bank, Main Director of the Environmental Fund Management Agency (BPDLH), and Deputy General Chair of the Drinking Water Companies Association in Indonesia (Perpamsi).
PT PII President Director M. Wahid Sutopo in his presentation entitled "Opportunity of Utilizing Green Financing Instruments in the Water Sector" conveyed the significant role of PT PII in accelerating and strengthening water infrastructure projects in Indonesia, as seen from the guarantee support for 6 water projects whose financing was carried out through the Government Cooperation with Business Entities (KPBU) scheme, namely SPAM Umbulan, SPAM Jatiluhur, SPAM Karian Serpong, SPAM Bandar Lampung, SPAM West Semarang, and SPAM Pekanbaru. The total investment for these 6 water projects is IDR 7.87 trillion, with a total capacity of 15,580 L/S and has been distributed to around 5 million Indonesians. "Strategic planning, stakeholder engagement, financing structuring and good operations are important factors in supporting the successful implementation of water sector projects through the PPP scheme as a form of Creative Financing in infrastructure development," said Sutopo.
On the same day PT PII also participated as a panelist in the Session 5A discussion forum with the topic "Revisiting of international water financing architecture (incl. New economic approaches) with emphasis on transparency, accountability, fairness & equity" represented by PT PII Business Director Andre Permana, together with the Main Director of Indonesia Infrastructure Finance (IIF), LPEM FEB University of Indonesia, ERIA, and IHE Delft. Followed on May 24 2024, PT PII also participated in the 5D discussion forum with the topic "Special schemes and incentives promoting green finance", together with the Water, Economy, & Climate Change Global Lead World Bank, Senior Auditor Bappenas and Project Lead Nature Conservancy.
PT PII Business Director Andre Permana in his presentation entitled "Critical Elements on Enabling Water Financing for Sustainability" conveyed various critical elements in financing for the water sector, especially through the PPP scheme. "Studying the lessons learned from previous projects in the water sector, taking into account the balanced allocation of risks between the parties, as well as the commitment and capacity of the government or authority bodies are very important for the success of sustainable water sector infrastructure projects," said Andre.
Apart from being active in the main agenda of WWF 2024, in this international event PT PII is also exploring collaboration with the French Embassy to Indonesia through the French Business Delegation Forum at the French Pavilion, in the WWF 2024 Country Pavilion area, Bali Nusa Dua Convention Center. In the discussion forum which was attended by business people from France, especially in the water sector, investors and related stakeholders, the President Director and Business Director of PT PII gave a presentation in the form of sharing knowledge related to PT PII's mandate as a Special Mission Vehicle (SMV) of the Ministry of Finance RI which supports sustainable infrastructure
through creative financing schemes, as well as specifically the implementation carried out to support water sector infrastructure.
PT PII's involvement in WWF 2024 has started since 2023 where the Company has contributed to various side events of the Road to WWF 2024, especially in the sub-theme "Sustainable Water Finance" which consists of several workshop agendas and a "Call for Policy Brief" aimed at provide research-based policy recommendations to stakeholders. As for the WWF 2024 side event timeline, PT PII has also held the 25th Indonesia Infrastructure Roundtable (IIR) on September 26 2023 with the theme "Amplifying Partnerships: A Collaborative Drive to Strengthen Indonesia's Water Sector". The agenda, which is a collaboration between the IIGF Institute and Brawijaya University, as knowledge partners, also produces various recommendations related to creative financing for water sector infrastructure.