Wed, 12 May 2010
From: The Jakarta Globe
By Irvan Tisnabudi& Dion Bisara
State-owned PT Penjaminan Infrastructure Indonesia, which protects infrastructure investors against losses caused by bad policy, can guarantee up to Rp 26 trillion ($2.9 billion) of projects after it secured $500 million of support from the World Bank on Tuesday.

The government injected Rp 1 trillion of initial capital into PII in January but the company needed further financial backing from international financial agencies.

The World Bank on Tuesday announced a commitment to guarantee up to $500 million worth of projects supported by the company.

Joachim von Amsberg, the World Bank’s country director for Indonesia, said that PII would fill the “key puzzle piece for infrastructure development in Indonesia.”

PII will compensate infrastructure investors who lose out because of problems such as abortive land acquisitions, unfavorable changes in the law or government failure to prevent illegal activity.

“The World Bank has provided technical support for the development of the PII for better infrastructure in the nation and now we will provide financial support for the development of the nation’s infrastructure,” von Amsberg said.

He added that PII would determine if an investor was worthy of receiving such support and the World Bank would then provide the guarantee.

“With the establishment of PII, the management of infrastructure projects will be undertaken in a more transparent, consistent and credible process, so it will improve the creditworthiness of the projects and government contingent liabilities on guarantee provisions,” Finance Minister Sri Mulyani Indrawati said.

Sinthya Roesly, president director of PII, said: “With [guarantees] we could cover risk exposure up to five times [of the $500 million] to $2.5 billion, or around Rp 25 trillion, plus our initial capital from the government of Rp 1 trillion.”

She said that investors could drive down commercial bank loan interest rates by up to 150 basis points if they could prove that their projects were guaranteed by PII.

“The guarantee from the World Bank can usually bring down loan interest between 200 bps and 500 bps. We are confident that with this fund, we can decrease it at least by 150 bps,” Sinthya said.

She said that there were three projects likely to get guarantees from PII: a Rp 300 billion steam power plant in Central Java, the Soekarno-Hatta International Airport railway and a waste energy management project in West Java.

PII will also act as a “single window” for the government in appraising projects, structuring guarantees and processing claims,” she said.

“All guarantees for projects from the government, state-owned enterprises and public-private partnerships will go through us,” Sinthya said.

According to a press release from the Ministry of Finance on Tuesday, Indonesia needs nearly Rp 1,429 trillion ($157 billion) in investment every year to revamp ailing infrastructure over the next five years.

However, the government is only able to finance about Rp 511 trillion, prompting it to turn to the private sector.



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