PT PII Make Sure Not To Ask For Additional PMN For The Jakarta-Bandung High Speed Rail Project

PT PII Make Sure Not To Ask For Additional PMN Funds For The Jakarta-Bandung High Speed Rail Project

JAKARTA - The government has appointed PT Penjaminan Infrastruktur Indonesia (PII) as the executor of the Jakarta-Bandung High Speed Rail project.

In addition, the government issued a regulation regarding government guarantees to obtain funding for the cost overrun (cost overrun) of the project. This is stated in the Minister of Finance Regulation (PMK) Number 89 of 2023 concerning Procedures for Implementing Government Guarantee Administration to Accelerate the Implementation of Infrastructure and Fast Train Facilities between Jakarta and Bandung.

President Director of PT PII Wahid Sutopo said that the discussion on the debt guarantee for the high-speed rail project is still in process with PT Kereta Api Indonesia (Persero) or KAI and the Ministry of Finance (Kemenkeu).

"Currently we have been involved in good discussions by KAI as well as by providing fast train financing with the Ministry of Finance," said Sutopo during an event at the Ministry of Finance's DJKN, Friday, December 8.

Sutopo explained that his party is currently waiting for the issuance of the Minister of Finance's Decree (KMK) for the system and scheme for implementing guarantees for the high-speed rail project. "If there is progress if there is a KMK, we will update it again," he explained.

"Later we will see how it develops until now the discussion is still ongoing," he added.

Even so, Sutopo said that until now PII's capacity would be sufficient to guarantee the project, so it would not ask for additional state capital participation (PMN).

"So if this is indeed given a mandate, of course, according to the existing ability in PII based on what is now there. So we will not ask for additional PMN from Mr. Meirizal (DJKN)," said Sutopo.

Sutopo said that the amount of the project guarantee allocation will still be stipulated in derivative regulations in the form of KMK and the amount of project guarantee allocation will consider PII capacity.

"What will be mandated to PII will be determined in the KMK. What is currently still in process, we have not received the allocation from the guarantee given to PII. But of course this allocation will be adjusted to the ability of PII," he added.

Sutopo said that previously the government had provided support in the form of PMN injections to increase PII's business capacity and financial capacity in carrying out guarantees.

Since its establishment in 2009 to 2023, PII has received PMN of IDR 10.65 trillion. Of this amount, Rp9.08 trillion is intended for the main mandate guarantee of both the KPBU and non-KPBU schemes, and Rp1.57 trillion in the context of the national economic recovery assignment (PEN).