The Finance Ministry, Bank Indonesia (BI), Financial Services Authority (OJK) and State-Owned Enterprises (SOEs) Ministry held the Indonesia Investment Forum (IIF) 2018, followed by the signing of an MoU on toll road financing by state-owned lender PT Bank Mandiri and state-owned construction company PT Hutama Karya on a different day.

The events were held as a parallel event of the 2018 IMF-World Bank Group Annual Meetings in Nusa Dua, Bali.

Themed to reflect a new paradigm in infrastructure financing, the Oct. 9 forum aimed at discussing new financing alternatives for infrastructure projects, which the country urgently needs to spur economic growth. Addressing the forum’s panel discussions were Finance Minister Sri Mulyani Indrawati, BI Governor Perry Warjiyo, OJK chairman Wimboh Santoso, and representatives from PT Bank Mandiri and Mandiri Sekuritas, as well as other financial institutions and potential investors.

SOEs Minister Rini M. Soemarno said that 143 state-owned companies were ready to accelerate infrastructure development, and that the currently low rupiah exchange rate should attract investors, which would offer them higher yields from their investments.

Crucial moment: Officials from several state-owned banks take part in a memorandum of understanding (MoU) signing ceremony during the 2018 Indonesian Investment Forum (IIF) on Thursday, which ran parallel to the 2018 International Monetary Fund-World Bank Group Annual Meetings in Bali. State-owned toll road operator PT Jasa Marga president director Desi Arryani, Bank Mandiri president director Kartika Wirjoadtmodjo and Finance Services Authority (OJK) supervisory executive head Hoesen signed the US$112 million agreement.

Sri Mulyani said that the government was offering investors 78 infrastructure projects with a total value of US$42.1 billion (Rp 650 trillion) during the IMF-WB meetings.

She added that investors had already signed 21 projects worth US$13.6 billion (Rp 207 trillion).

Bank Mandiri and Mandiri Sekuritas are the appointed coordinators of financing for the 21 projects.

Meanwhile, the IIF on Thursday, Oct. 11 saw Bank Mandiri and PT Hutama Karya sign an MoU on the loan disbursement. The MoU was signed by Bank Mandiri senior vice president for large corporate banking Dikdik Yustandi, Bank Mandiri corporate banking director Royke Tumilaar and Hutama Karya president director Bintang Perbowo.

Investment opportunities: A 2018 Indonesian Investment Forum (IIF) panel held on Oct. 9 in Bali on infrastructure investment opportunities is themed, A New Paradigm in Infrastructure Financing.

Under the MoU, Bank Mandiri will disburse Rp 2.04 trillion in loans to finance the construction of the 185 kilometer Terbanggi Besar toll road section, South Lampung – Kayu Agung, South Sumatra.

The signing of the MoU affirmed Bank Mandiri’s commitment to supporting the acceleration of the infrastructure project that is the government’s priority development program.

On the same occasion, Bank Mandiri along with its subsidiaries Mandiri Sekuritas and Mandiri Manajemen Investasi in collaboration with state-owned toll road operator PT Jasa Marga Tbk issued a collective investment contract for infrastructure funds.

As of June, Bank Mandiri has disbursed Rp 165.8 trillion to finance infrastructure projects.

A token of appreciation: Mandiri Sekuritas CEO Silvano Rumantir (left), Indonesia Toll Road Authority (BPJT) head Herry Trisaputra Zuna (second left), AIA Group chief economist Brian Murray (second right) and PT Indonesia Infrastructure Finance managing director Harold Tjiptadjaja (right) pose for a photograph following a talk called, A New Paradigm in Infrastructure Financing: Investment in SEO Projects, moderated by Silvano Rumantir at the 2018 International Monetary Fund-World Bank Group Annual Meetings in Bali.

Long-term deal: 14 state-owned enterprises and investors in projects worth US$13.5 billion pose for a photograph after signing relevant documents in Nusa Dua, Bali, on Thursday, on the sidelines of the 2018 International Monetary Fund-World Bank Group Annual Meetings in Bali.

Light moment: Bank Mandiri president director Kartika Wirjoatmodjo (right) poses for a photograph at the 2018 Indonesia Investment Forum (IIF) with (from left) moderator Hera F Haryn, World Bank infrastructure specialist Jeffrey Delmon, Blackrock Infrastructure director Eric Wu, Moody’s managing director Terry Fenous and Committee for Accelerated Infrastructure Development (KPPIP) program director Ranier Haryanto.

The road so far: State-Owned Enterprises (SOEs) Minister Rini Soemarno details Indonesia’s achievements in infrastructure development at the 2018 International Monetary Fund-World Bank Group Annual Meetings in Bali.

Sustainability matters: Finance Minister Sri Mulyani Indrawati underscores the importance of continuous reform for sustainable Indonesia during the 2018 Indonesian Investment Forum (IIF).

Increasing role: Bank Indonesia (BI) governor Perry Warjiyo expects a further increase in the role of private companies in financing infrastructure projects to reduce their reliance on the state budget.

Progress showcase: Coordinating Economic Minister Darmin Nasution highlights infrastructure progress during the 2018 Indonesia Investment Forum (IIF). As many as 32 national strategic projects were completed between 2016 and June 2018.

 

All photos: JP/Wendra Ajistyatama