For The Reason Of The Waste Emergency, The DPRD Allows The DKI Provincial Government To Debt IDR 1 Trillion To PT SMI To Build RDF

JAKARTA - The DKI Jakarta DPRD has finally allowed the DKI Jakarta Provincial Government to submit a debt to PT Sarana Multi Infrastruktur (SMI) as a BUMN financing of IDR 1 trillion to build a Refuse Derived Fuel (RDF) Plant.

This loan plan experienced dynamics because it was not approved on August 18. Then, in a meeting of the DKI Jakarta DPRD Budget Agency which discussed the draft general policy of the regional budget and budget priorities for the temporary budget ceiling (KUA-PPAS) for the 2024 fiscal year.

The meeting took place with the rejection of a number of council members at the request for this loan permit. The settlement was that the chairman of the DKI Jakarta DPRD, Prasetyo Edi Marsudi, as the chair of the meeting, asked the DKI Provincial Government to guarantee that they could pay off their debts if the loan was submitted.

"I asked the TAPD (regional government budget team), if for example this is a loan of IDR 1 trillion, can it?" asked Prasetyo in the plenary meeting room of the DKI Jakarta DPRD building, Tuesday, September 12.

"Yes, sir," replied Head of the Regional Financial Management Agency (BPKD) Michael Rolandi.

"Really, huh? I'm stuck," replied Prasetyo followed by a knock on the hammer to sign the loan approval from the DPRD.

After the meeting, Michael Rolandi explained the reason why the DKI Provincial Government was determined to apply for a loan of IDR 1 trillion to this company owned by the central government because Jakarta had experienced a waste emergency.

"I accompanied the Acting Governor to a meeting with the Coordinating Minister for Maritime Affairs and Investment on August 30. There, it was decided that handling waste had become an emergency and had to be handled," said Michael.

Meanwhile, in the preparation of the 2024 APBD, the DKI Provincial Government lacks financing to build RDF Plant as waste processing into fuel at the level of coal. On that basis, the DKI Provincial Government plans to apply for a loan and ask for permission from the DPRD.

Michael also emphasized that his party was still able to pay installments to pay off the loan. To PT SMI, the DKI Provincial Government asked for a repayment period of 8 years and a grace period after a credit period of 3 years.

"So if it is Rp1 trillion with a return of 8 years, yes (the installments) are Rp125 billion per year. Our DSCR (debt service coverage ratio) is still very capable of paying the Rp125 billion installments," he explained.

With the approval of applying for a loan of Rp1 trillion to PT SMI to build RDF Plant, it was agreed that the value of the draft KUA-PPAS APBD for the 2024 fiscal year was Rp. 81,580,775,048.