Keynote Speech

Indonesia Investment
Forum 2018
A New Paradigm in Infrastructure
Financing

Darmin Nasution
Coordinating Minister for Economic Affairs
Chairman of Committee for Acceleration of Priority Infrastructure Delivery

Tuesday, 9th October 2018

Conrad Hotel, Bali
 Infrastructure Progress
There are 32 National Strategic Projects completed between 2016 and June 2018

31
2016
Gempol – Pandaan Toll Road, East
1
Java (14km)
Jangkrik and Jangkrik North East Field
2 Sentani Airport, Jayapura, Papua 25
Development, East Kalimantan
Juwata Airport, Tarakan, North PLBN Nanga Badau, Kapuas Hulu,
3 PLBN* Entikong, Sanggau, West 26
Kalimantan 11 32 West Kalimantan
Kalimantan
Fatmawati Soekarno Airport,
4 PLBN* Mota’ain, Belu, East Nusa 27 PLBN* Aruk, Sambas, West Kalimantan
Bengkulu 12 19 Nipah Dam, Madura, East Java
Tenggara
5 Mutiara Airport, Palu 20 Titab Dam, Buleleng, Bali
PLBN* Motamassin, Kab. Malaka,
13 28 East Nusa Tenggara
Matahora Airport, Wakatobi, East Nusa Tenggara
6
Southeast Sulawesi 14 PLBN* Skouw, Jayapura, Papua
Labuan Bajo Airport, Pulau Komodo,
2017 29 Teritip Dam, East Kalimantan
7 Paya Seunara Dam, Sabang,
East Nusa Tenggara 15 Umpu Irrigation Sistem (Way Besai),
Nanggroe Aceh Darussalam Soreang – Pasirkoja Toll Road, West 30
21 Lampung
Java (11km)
Soekarno Hatta Airport Bendungan Rajui, Pidie, Nanggroe
16
8 Development (Including Terminal Aceh Darussalam Mojokerto – Surabaya Toll Road, East
3), Banten 22
Java (36,3km) June 2018
Bendungan Jatigede, Sumedang,
9 Kalibaru Port, DKI Jakarta 17
West Java Tanjung Priok Access Road, DKI Prabumulih - Kertapati Railway (Part of
23 31
Jakarta (16,7km) Trans Sumatera Railway Network
Belawan-Sei Mengkei Gas Pipe, 75 Bajulmati Dam, Banyuwangi, East
10 18
mmscfd Capcity, North Sumatera Java 24 Raden Inten II Airport, Lampung 32 Raknamo Dam
2
Infrastructure Financing Development (1/2)
The Government has issued end-to-end regulations and supports to attract investors in PPP projects

The Government’s supports in PPP

Project Viability Gap

Guarantee Availability Land
Development Funding Tax Facilities
Scheme Payment Acquisition
Facility (PDF) (VGF)

Preparation Bidding Process Construction

PPP Progress per September 2018

12 PPP Projects in
Construction

1 PPP Project in Operation

3
Infrastructure Financing Development (2/2)
The efforts in deepening the market to create alternative infrastructure financing instruments
Financial Market Instruments
Asset-backed securitization
(KIK EBA)
Limited Mutual Fund (RDPT)
Real Estate Investment Fund
(DIRE)
Infrastructure Investment Fund
(DINFRA)
Global Bond (Komodo Bond)
Perpetual Bond
Municipal Bond
Green Bond
Definition
Capital Market Instrument in a
form of bonds or notes backed by
financial asset such as loans,
leases, etc.
Capital Market Instrument in a
form of Mutual Fund that is offered
to limited investors
Capital Market Instrument in a
form of mutual fund to be invested
in real estate asset
Capital Market Instrument in a
form of mutual fund to be invested
in infrastructure asset
Capital Market Instrument in a
form of Rupiah Denominated
Bond issued by Indonesian
Institution that is listed abroad
Capital Market Instrument in a
form of bond with no maturity
date
Capital Market Instrument in a
form of bond issued by a regional
government
Capital Market Instrument in a
form of bond to be invested in
environmentally friendly business
Hedging Instrument Definition
Call Spread Options A combination of two Plain-Vanilla
Option transactions, that are
carried out simultaneously in a
transaction contract with different
Strike Prices and the same
nominal
Domestic Non Deliverable A contract to buy or sell foreign
Forward exchange within a certain period
of time using the predetermined
exchange rate.
Asset Recycling Scheme Definition
Limited Concession Scheme A concession of a brownfield
asset owned by either the
Government of Indonesia or State
Owned Enterprise given to a
strategic investor. As the benefit of
giving the concession, the
Government of Indonesia can
have an upfront payment and/or
revenue sharing that can be
utilized to develop other
Greenfield Infrastructure Projects
based on the determined
prioritization
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 THANK YOU
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