Nusa Dua - On the first day of the IMF - World Bank Annual Meeting 2018 event, the Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono, Minister of Finance Sri Mulyani and Minister of Communication and Information Rudiantara witnessed the signing of an agreement on financing support and guarantee of a number of infrastructure projects under a scheme of schemes Cooperation between the Government and Business Entities (KPBU), in Nusa Dua, Bali, Monday, October 8, 2018. Innovation of non-APBN financing sources through the PPP helped accelerate the availability of infrastructure in order to meet high public demand as an alternative to a limited APBN

PUPR Minister Basuki Hadimuljono expressed his appreciation to the Ministry of Finance who helped support financing innovations not only in development but also maintenance of PUPR infrastructure such as toll roads, drinking water and most recently in terms of preservation of non-toll national roads.

"The budget allocated at the Ministry of PUPR in the last four years has averaged Rp 105 trillion, while the needs are greater. Most toll road projects in the Ministry of Public Works and Housing use the PPP scheme. There is also drinking water such as Umbulan SPAM and Bandar Lampung SPAM. The latest is the preservation of national roads with the PPP PPP scheme (Availabilty Payment) where national roads are maintained throughout the year regardless of the state budget cycle, "said Minister Basuki.

In five years there were 54 toll road projects along 2,934 Km with an investment requirement of Rp 500 trillion. Progress as many as 6 projects have been completed, 48 projects are still running with a value of Rp 460 trillion. With such a large investment value, the APBN funds are 2% or Rp 15 trillion.

For PPP, AP road preservation is financed by a business entity, while Government payments are made periodically for the availability of infrastructure services that are in accordance with the quality specified in the PPP agreement. This scheme will begin in 2019 for the Jalintim Sumatra, Trans Kalimantan and Trans Papua sections.

Finance Minister Sri Mulyani said that infrastructure projects under the Ministry of PUPR were much in demand by the private sector. The number of private participation will accelerate but remain accountable with measured risks. "The key is the leadership of the Minister of Public Works and Housing which targets the acceleration of infrastructure development because the community has waited a long time," said Sri Mulyani.

For infrastructure maintenance activities, the PPP scheme provides benefits, ie assets are maintained well, maintenance budget accountability is very transparent, and infrastructure quality is maintained.

Infrastructure PPP Projects that are Financed and Guaranteed

At the event the Head of Agreement (HoA) of the West Semarang SPAM PPP Project was signed by the President Director of PT. PII Armand Hermawan, Managing Director of PT Air Semarang Barat Immanuel Ria Swarna and Acting Director of PDAM Tirta Moedal Muhammad Farchan.

The project is targeted to start operating in 2021 and will provide benefits of providing clean water with a capacity of 1,000 liters per second for around 60 thousand people. The Ministry of PUPR has also prepared other SPAM PPP projects namely Jatiluhur SPAM, Karian and other potential SPAM projects.

Then the submission of the request for the Guaranteed Non-Toll Road Preservation National PPP Road Preservation Project for South Sumatra, conducted by the Director General of Highways Sugiyartanto to the Director of PT. Indonesia Infrastructure Guarantee, Armand Hermawan. Submission of guarantee proposals to IIGF in order to improve the bankability of the project.

The National Road Preservation Project around Palembang City is 29.87 km as the first PPP project for preservation of national roads developed by the Director General of Highways in the Ministry of PUPR. With an investment of around Rp 1.35 trillion, the project will engage private investors to preserve national roads during the concession period with the Availability Payment scheme.

In addition, a memorandum of understanding (MoU) was signed with the Cikunir - Ulujami toll road consortium or the Jakarta Outer Ring Road Elevated or JORR III by the initiating business entity, the consortium of PT Nusantara Infrastructure, PT Acset Indonusa and PT Adhi Karya with PT Indonesia Infrastructure Finance ( IIF).

The construction of the JORR III Toll Road aims to reduce the traffic burden along JORR and maximize the traffic capacity along the JORR corridor if it is integrated with the Jakarta - Cikampek II (Layang) Toll Road and / or the Jakarta - Cikampek II (South) Toll Road. In addition, the construction of the JORR III elevated toll road is also intended to unravel the congestion and burden of inner-city toll roads. Project with a total length of 28.86 KM with an investment of Rp 22.5 Trillion.

Also present was accompanying Minister Basuki namely Dirjen Bina Marga Sugiyartanto, Head of BPJT Herry Trisaputra Zuna, Director of Road Network Development Rahman Arief Dienaputra,