Develop SPAM, PT Air Bersih Jakarta Receives IDR 8.9 Trillion Credit

JAKARTA - PT AirClean Jakarta signed a syndicated credit agreement from seven banking institutions and one financial institution worth IDR 8.9 trillion for the construction of a clean water pipeline network in DKI Jakarta.

The signing was carried out at the Ministry of Public Works and Public Housing building which was witnessed directly by PUPR Minister Basuki Hadimuljono, on Monday, 20 February.

Minister Basuki said, in supporting the achievement of the target of 100 per cent drinking water service, as well as following up on the Memorandum of Understanding between the Minister of PUPR, Minister of Home Affairs and the Governor of DKI Jakarta on January 3, 2022, The PUPR Ministry and DKI Jakarta Provincial Government work together to develop a Drinking Water Supply System (SPAM) on the upstream and downstream sides.

"If we can complete all of these SPAM projects according to the timeline and can supply the people of DKI Jakarta, then in 2030, the government can tell the people to stop using groundwater. Only with these efforts can the decline in groundwater in DKI Jakarta be stopped", said Basuki in his press release, quoted on Tuesday, February 21.

The development of piped access to drinking water is carried out because DKI Jakarta has the challenge of decreasing groundwater levels as a result of groundwater extraction.

To solve this challenge, it is necessary to increase piped drinking water services, where currently the service coverage is still 65 per cent, so that a water supply of 31,875 litres per second is needed in 2030 to achieve 100 per cent piped drinking water service coverage.

The construction of the upstream side includes the Jatiluhur I Regional SPAM of 4,000 litres per second, the Karian-Serpong Regional SPAM of 3,200 litres per second, and the Ir. H. Djuanda with an indication of 2,054 litres per second.

Meanwhile, on the downstream side, the Provincial Government of DKI Jakarta is optimizing existing SPAM assets and new construction to support Jatiluhur I Regional SPAM and Karian-Serpong Regional SPAM using a bundling scheme with a capital cost of IDR 26.7 trillion.

"Today, downstream financing will be realized through the signing of a credit facility between PT Air Clean Jakarta and a syndicated creditor for the first two years with a capital cost of IDR 12 trillion, consisting of loans of IDR 8.8 trillion and shareholder equity", explained Basuki.

Basuki hopes that signing this credit facility can improve drinking water services in DKI Jakarta, as well as support Indonesia's investment climate, especially in the drinking water sector. "I congratulate and thank the syndicated creditors for supporting the Indonesian Government's project to serve the people through this PPP scheme. Currently, the coverage of piped drinking water services is still 65 per cent, and with these three projects, hopefully, the target of 100 per cent in 2030 can be achieved", he said.

On the same occasion, the CEO of PT Moya Indonesia Mohamad Selim expressed his gratitude to the Government of Indonesia, especially the Ministry of PUPR and the DKI Jakarta Provincial Government.

"The signing of the credit facility between PT Air Clean Jakarta and eight financial consortiums is the start of the DKI Jakarta SPAM milestone project. There is a plan for the first two years, we will build 2500 km of pipes that serve 350,000 House Connections (SR) if there are no significant obstacles. "We will start work this April", he said.

As many as seven banking institutions providing this syndicated loan include Bank Central Asia (BCA), OCBC Bank, OCBC NISP, State Savings Bank (BTN), National Pension Savings Bank (BTPN), KB Bukopin and China Construction Bank or CCB Indonesia, as well as one financial institution, namely PT Sarana Multi Infrastruktur (SMI).