he government on Wednesday signed a guarantee agreement for the development of four toll road projects worth Rp 37 trillion (US$2.77 billion).
The guarantee was given for the construction of the Jakarta - Cikampek II Elevated toll road in Greater Jakarta, Krian–Legundi–Bunder–Manyar toll road in East Java, Cileunyi–Sumedang–Dawuan toll road in West Java and Serang–Panimbang toll road in Banten.
“The guarantee agreement for the toll road projects is to give security and convenience to investors and at the same time show the commitment of the Finance Ministry to supporting infrastructure development,” Finance Minister Sri Mulyani Indrawati said as reported by Antara.
(Read also: Govt warns SOEs not to eat up entire infrastructure cake)
The signing ceremony was attended by Coordinating Economic Minister Darmin Nasution, Public Works and Housing Minister Basuki Hadimuljono and other relevant officials.
The projects are the result of cooperation between the government and private companies (KPBU). The government is represented by PT Penjaminan Infrastuktur Indonesia (PII), a state-owned company under the Finance Ministry, which is mandated to provide a guarantee to the infrastructure projects.
Sri Mulyani said the guarantee covered political risks caused by law revisions and other government activities that could cause project termination.
Those factors include government policies on tariffs that have caused the halt of tariff increases for more than two years, delayed land acquisition and other factors that could cause termination of projects. (bbn)
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