The year 2017 is going to be an interesting one for the asset-backed securities (ABS) market in Indonesia. It will be the first year in Indonesia’s history for ABS that focus on infrastructure projects to go public. However, to expand the market and achieve its ultimate goal of plugging the infrastructure financing gap, more regulatory enablers are needed.
One of the significant bottlenecks in Indonesia’s infrastructure financing is the financing of new (green-field) projects. The projects’ bankability remains one of the reasons why it is hard to mobilize funds for them.
Due to this challenge, some infrastructure financial institutions such as PT Indonesia Infrastructure Guarantee Fund (IIGF) and PT Sarana Multi Infrastruktur (SMI) are over-capacity for funding and guaranteein...
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