PT Jasa Marga Tbk (IDX: JSMR) signed direct equity financing with PT China Communications Construction Indonesia (CCCI) amounting Rp23.3 trillion (US$1.65 billion) on Monday (14/10) - Photo by the Ministry Office

JAKARTA (TheInsiderStories) PT Jasa Marga Tbk (IDX: JSMR) signed direct equity financing with PT China Communications Construction Indonesia (CCCI) amounting Rp23.3 trillion (US$1.65 billion) on Monday (14/10). The state-owned toll road operator will use the funds to build Probilinggo – Banyuwangi toll road project in East Java.

At the same day, an initial agreement supply chain financing was also signed between PT Wijaya Karya Tbk (IDX: WIKA), PT Jasa Sarana, and PT ICDX Bonded Logistics with total values Rp6.04 trillion.

According to national development planning minister Bambang Brodjonegoro, the project financing helped by non-government budget equity financing (PINA) Center for Private Investment. He reported, as of October 2019, the agency has facilitated financial close Rp52 trillion from this year targets Rp84 trillion.

To date, he noted, there are 29 projects amounting to Rp630 trillion which are in the pipelined from domestic and international investors, including state-owned lender PT Taspen, Social Security for Employees body, and the Canada Pension Plan Investment Board.

While, During of 2018, PINA Center has signed project financing  worth of $3.3 billion for toll road and construction projects. Since its founded in 2017, the body has successfully facilitated funds for 11 projects across sectors by the end of 2018. The state arms also has introduce, a perpetual notes instrument issued by PT PP Tbk (IDX: PTPP) in 2017 and Wijaya Karya in 2018.

“Going forward, I hope PINA Center for Private Investment will always be able to develop innovative financing ecosystems, which support the acceleration of excellent development and economic growth,” adds by the minister.

Recently, the ministry has offered 34 projects under PINA program with a total value of $25.8 billion to domestic and foreign investors. The projects are a toll road in North Sumatra worth owned by PT Hutama Marga and PT Waskita Karya Tbk (IDX: WSKT) worth of Rp13.4 trillion (US$950.35 billion), two power plant projects owned by PT Pembangkit Jawa Bali Rp14.5 trillion, and six power plant projects belong to PT Indonesia Power with a total value of Rp78.3 trillion.

Then, a Rp27.5-trillion power transmission project owned by PT Perusahaan Listrik Negara, a project to develop the second phase of Aero cityworth managed by Bandar Udara Internasional Jawa Barat of Rp30 trillion, Kulon Progo Airport in Yogyakarta worth Rp 6.7 trillion owned by PT Angkasa Pura I and PT PP Tbk (IDX: PTPP), R80 Airplane under PT Regio Aviasi Industry with total amount Rp21.6 trillion, also Flores Integrated Area development valued at Rp13.5 trillion.

The PINA Scheme has three main functions. First, to facilitate projects for reaching the financial close phase and provide suggestions for project structuring and financing. Second, to promote an infrastructure investment climate through the assessment of regulations and to accelerate the implementation creative financing instruments. And third, to pipeline for preparing the list of projects that are ready to be offered to investors and potential investors.

During 2020 – 2024, the government planned to spend Rp6,174 trillion for infrastructure projects, he adds. Out of this total amount of infrastructure financing, around 40 percent can be supported by the State Budget, he concluded.

US$1: Rp14,100

by Linda Silaen, Email: linda.silaen@theinsiderstories.com