Wed, 06 Jan 2010
From: The Jakarta Globe
By Dion Bisara
The government has established a state-owned guarantee fund to protect investors in infrastructure projects from any “unfavorable” policies that could hurt their investments, the Finance Ministry said on Tuesday.

The fund - called PT Penjaminan Infrastruktur Indonesia (PII) - will act like an insurance company, compensating investors for losses if, for example, a promised tariff hike on a toll road did not materialize. Investors will have to pay premiums but not as high as those charged by traditional insurance firms.

“The objective in establishing PII is, firstly, to reduce the cost of financing public-private partnerships [PPPs] by improving the quality of the PPP projects and their creditworthiness,” Arif Baharudin, the Finance Ministry’s director of state assets, said. Firms who are backed by PII will also enjoy easier access to credit and lower interest rates, he said.

“PII is also expected to help the government manage its fiscal risk better by ring-fencing government obligations vis-a-vis guarantees,” Arif said.

PII was formally established last week and will report directly to the finance minister. The government has injected Rp 1 trillion ($107 million) as initial capital, the Finance Ministry said.

Fatchur Rochman, the chairman of the Indonesian Toll Road Association, said PII would need to gain the trust of the banks.

“I would say that it needs three years to build confidence in the banking sector. If they fail to to gain that confidence, they would not be effective in bringing down interest rates,” he said.

“Currently we have to pay high interest, ranging from 14 to 15 percent,” he added.

He said investors would be more than happy if the establishment of PII resulted in lending rates for infrastructure investment falling by two or three percentage points.

PII may get additional funds from a Rp 1.5 trillion loan from the World Bank to Indonesia.

PII commissioner Freddy Rikson Saragih said the fund was still calculating the premiums that investors would have to pay to obtain coverage.

No details on the premiums were available because PII had only been established recently, he said.

The government has estimated that the country needs nearly Rp 2,000 trillion a year in infrastructure investment over the next five years.

However, the government is only able to finance about 40 percent of that amount, prompting it to turn to the private sector to jointly finance projects via public-private partnerships.

But PPP projects often find it difficult to get financing. Banks are reluctant to provide loans due to the long durations and high-risk nature of the projects.



News Search/Filter
Transaction Rates
19 Dec 18
Buy
Sell
AED1
3,943.89
3,943.89
AFN1
191.11
191.11
ALL1
133.66
133.66
AMD1
29.87
29.87
ANG1
8,160.97
8,160.97
AOA1
46.98
46.98
ARS1
378.60
378.60
AUD1
10,414.92
10,414.92
AWG1
8,048.15
8,048.15
AZN1
8,509.04
8,509.04
BAM1
8,438.93
8,438.93
BBD1
7,243.32
7,243.32
BDT1
172.67
172.67
BGN1
8,423.97
8,423.97
BHD1
38,422.85
38,422.85
BIF1
7.94
7.94
BMD1
14,486.64
14,486.64
BND1
9,192.26
9,192.26
BOB1
2,096.34
2,096.34
BRL1
3,702.64
3,702.64
BSD1
14,486.64
14,486.64
BTC1
52,956,160
52,956,160
BTN1
205.62
205.62
BWP1
1,353.67
1,353.67
BYN1
6,811.76
6,811.76
BZD1
7,186.54
7,186.54
CAD1
10,766.33
10,766.33
CDF1
8.91
8.91
CHF1
14,596.11
14,596.11
CLF1
598,275.55
598,275.55
CLP1
20.99
20.99
CNH1
2,102.77
2,102.77
CNY1
2,101.00
2,101.00
COP1
4.54
4.54
CRC1
24.27
24.27
CUC1
14,486.64
14,486.64
CUP1
562.58
562.58
CVE1
148.96
148.96
CZK1
640.17
640.17
DJF1
81.38
81.38
DKK1
2,206.81
2,206.81
DOP1
287.26
287.26
DZD1
122.07
122.07
EGP1
808.90
808.90
ERN1
965.95
965.95
ETB1
520.10
520.10
EUR1
16,479.79
16,479.79
FJD1
6,801.41
6,801.41
FKP1
18,332.62
18,332.62
GBP1
18,332.62
18,332.62
GEL1
5,446.10
5,446.10
GGP1
18,332.62
18,332.62
GHS1
2,908.96
2,908.96
GIP1
18,332.62
18,332.62
GMD1
292.36
292.36
GNF1
1.57
1.57
GTQ1
1,871.55
1,871.55
GYD1
69.26
69.26
HKD1
1,852.61
1,852.61
HNL1
594.52
594.52
HRK1
2,222.55
2,222.55
HTG1
188.43
188.43
HUF1
51.14
51.14
IDR1
1.00
1.00
ILS1
3,853.03
3,853.03
IMP1
18,332.62
18,332.62
INR1
205.50
205.50
IQD1
12.17
12.17
IRR1
0.34
0.34
ISK1
118.48
118.48
JEP1
18,332.62
18,332.62
JMD1
112.85
112.85
JOD1
20,415.13
20,415.13
JPY1
128.74
128.74
KES1
141.40
141.40
KGS1
210.86
210.86
KHR1
3.60
3.60
KMF1
33.46
33.46
KPW1
16.09
16.09
KRW1
12.86
12.86
KWD1
47,645.59
47,645.59
KYD1
17,382.20
17,382.20
KZT1
39.04
39.04
LAK1
1.69
1.69
LBP1
9.60
9.60
LKR1
80.45
80.45
LRD1
92.21
92.21
LSL1
1,009.52
1,009.52
LYD1
10,347.60
10,347.60
MAD1
1,513.75
1,513.75
MDL1
837.25
837.25
MGA1
4.08
4.08
MKD1
267.72
267.72
MMK1
9.16
9.16
MNT1
5.90
5.90
MOP1
1,798.23
1,798.23
MRO1
40.57
40.57
MRU1
398.42
398.42
MUR1
420.45
420.45
MVR1
937.04
937.04
MWK1
19.48
19.48
MXN1
722.15
722.15
MYR1
3,453.72
3,453.72
MZN1
235.74
235.74
NAD1
1,009.52
1,009.52
NGN1
39.68
39.68
NIO1
446.79
446.79
NOK1
1,660.22
1,660.22
NPR1
128.50
128.50
NZD1
9,926.33
9,926.33
OMR1
37,628.62
37,628.62
PAB1
14,486.64
14,486.64
PEN1
4,336.45
4,336.45
PGK1
4,304.42
4,304.42
PHP1
273.70
273.70
PKR1
103.70
103.70
PLN1
3,845.00
3,845.00
PYG1
2.44
2.44
QAR1
3,978.75
3,978.75
RON1
3,546.15
3,546.15
RSD1
139.22
139.22
RUB1
214.84
214.84
RWF1
16.36
16.36
SAR1
3,862.64
3,862.64
SBD1
1,781.42
1,781.42
SCR1
1,062.00
1,062.00
SDG1
304.27
304.27
SEK1
1,599.59
1,599.59
SGD1
10,573.06
10,573.06
SHP1
18,332.62
18,332.62
SLL1
1.72
1.72
SOS1
24.99
24.99
SRD1
1,942.43
1,942.43
SSP1
111.21
111.21
STD1
0.68
0.68
STN1
671.29
671.29
SVC1
1,655.44
1,655.44
SYP1
28.13
28.13
SZL1
1,010.93
1,010.93
THB1
442.74
442.74
TJS1
1,536.87
1,536.87
TMT1
4,127.27
4,127.27
TND1
4,927.74
4,927.74
TOP1
6,412.26
6,412.26
TRY1
2,712.98
2,712.98
TTD1
2,149.15
2,149.15
TWD1
472.04
472.04
TZS1
6.29
6.29
UAH1
520.79
520.79
UGX1
3.91
3.91
USD1
14,486.64
14,486.64
UYU1
449.12
449.12
UZS1
1.73
1.73
VEF1
0.05
0.05
VND1
0.62
0.62
VUV1
130.50
130.50
WST1
5,562.44
5,562.44
XAF1
25.12
25.12
XAG1
212,098.94
212,098.94
XAU1
18,101,064.87
18,101,064.87
XCD1
5,360.36
5,360.36
XDR1
20,135.69
20,135.69
XOF1
25.12
25.12
XPD1
18,162,338.26
18,162,338.26
XPF1
138.10
138.10
XPT1
11,453,069.67
11,453,069.67
YER1
57.85
57.85
ZAR1
1,010.22
1,010.22
ZMW1
1,209.65
1,209.65
ZWL1
44.94
44.94
Taxation Exchange Rates
31 Aug 16 - 06 Sep 16
USD 1
13,232.00
AUD 1
10,043.30
CAD 1
10,213.70
DKK 1
1,999.40
HKD 1
1,706.22
MYR 1
3,283.28
NZD 1
9,623.63
NOK 1
1,605.23
GBP 1
17,433.70
SGD 1
9,757.68
SEK 1
1,569.45
CHF 1
13,631.10
JPY 100
13,101.00
MMK 1
11.01
INR 1
197.29
KWD 1
43,920.70
PKR 1
126.23
PHP 1
285.00
SAR 1
3,528.53
LKR 1
91.12
THB 1
382.08
BND 1
9,756.53
EUR 1
14,885.50
CNY 1
1,987.61

Okusi Associates: Indonesian Business & Management Services