PT PII Eyes International Partners, Including the World Bank and IsDB

PT Penjaminan Infrastruktur Indonesia (Persero), or PT PII, has set a maximum gearing ratio of 12x to limit the risk of guaranteeing projects, including under the Government-Linked Public-Private Partnership (KPBU) scheme. The gearing ratio indicates a company's debt-to-equity balance. PT PII's gearing ratio currently sits at 6.2x, signalling substantial headroom to guarantee infrastructure projects. Acting President Director Andre Permana said the equity of the company, a BLU under the Ministry of Finance, stands at Rp17.5 trillion, which could back guarantees of Rp115 trillion. Thus, PT PII still has ample capacity to provide guarantees. "There is leverage that can be maximised. That is 12x (gearing ratio). The current position is around 6.5x. So there remains room from 6.5 to 12," he said on Fiscal Focus, CNBC Indonesia TV, quoted Thursday (5/3/2026). For some time PT PII has collaborated with the Ministry of Finance for guarantees. To boost the gearing ratio, PT PII has been asked to explore collaborations with other institutions with similar functions, namely guarantee institutions or insurers. Andre noted they are examining partnerships with units under the World Bank, namely the Multilateral Investment Guarantee Agency (MIGA) and ICIEC (Islamic Corporation for the Insurance of Investment and Export Credit) of the Islamic Development Bank (IsDB). "Also from bilateral agencies with Australia, Korea, and so on. These efforts are intended to avoid direct reliance on capacity sourced from the Ministry of Finance, but to explore with other parties first," he said. At present, PT PII has issued 60 guarantees, including 37 project guarantees for KPBU and the remainder for loans or credits to state-owned enterprises (BUMN). Of the total, the value of guarantees extended exceeds Rp700 trillion.