Nusa Dua (TheInsiderStories) – A total of 78 infrastructure projects worth US$42 billion will be signed by the government and investors at the 2018 IMF – WB Annual Meeting in Nusa Dua, Bali on Thursday (11/10), said one official. From a number of projects, 20 projects will involve 12 state-owned enterprises (SOEs).
“There are 20 projects with a value of $13 billion and involve no less than 12 SOEs,” said PT Mandiri Sekuritas President Director, Silvano Rumantir at the sidelines 2018 Indonesia Investment Forum on Tuesday (09/10).
He added, PT Bank Mandiri Tbk would coordinate direct investment in the 20 SOEs projects.
Rumantir stated, of the 20 projects that will be signed, nearly 80 percent are strategic partnerships, 18 percent are project financing, and the rest are capital markets. According to him, specifically for capital markets, the SOEs ministry and the companies is very focused on diversifying funding sources in the future.
“So, even from the capital market, not only (using traditional methods) such as rupiah bonds or IPO (initial public offering), but other innovations. Both debt and non-debt, so that the debt risk ratio in the future can be maintained,” he explained.
In addition, to maintaining the risk of debt, it is hoped that infrastructure development can be realized. Especially for infrastructure, for the first time the infrastructure investment fund (DINFRA) will be launched this week for PT Jasa Marga Tbk (IDX: JSMR) soon.
With this DINFRA, there are two gold assets in the same product, namely fixed income or debt and equity. DINFRA issued on a debt-based basis will be used to refinance Jasa Marga’s debt which will be mature. Meanwhile, equity-based DINFRA will be issued for capital development for toll road projects.
“There are also a few more that we are exploring, for example securitization. What has happened, we have explored to make a cross border version so that not only domestic investors, but also abroad we can attract to enter the financing,” said Silvano.
While other instruments are green bonds. This is in line with the future focus of SOEs to improve the fee friendly environment.
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