Bond Guarantee To Support Alternative Funding For The Trans Sumatra Toll Project
The government’s infrastructure development target for the 2015-2019 period as stated in Presidential Regulation No. 3 of 2016 concerning National Strategic Projects requires very large funding. The allocation of APBN funds certainly will not be able to fund all of the development targets. The assignment of BUMN is one of the alternative financing schemes chosen by the Government to overcome the limitations of the budget.
The construction of 8 Trans Sumatra toll roads is one of the mega projects targeted to be completed by the end of 2019. Development is carried out through assignments to PT Hutama Karya (Persero), which is mandated in Presidential Regulation Number 100 of 2014 concerning Acceleration of Toll Road Construction in Sumatra jo. Presidential Regulation Number 117 Year 2015.
The total funding needed for the construction of 8 toll roads reaches Rp 81 trillion, of which funding in the form of equity is needed at Rp 52.6 trillion. The amount of equity needs is due to the low level of financial feasibility so that the ability of the project to leverage by making loans is low. Funding needs in the form of equity are ideally obtained through State Capital Participation (PMN) originating from the State Budget. However, given the large amount of funding needed in the form of equity, PT Hutama Karya (Persero) plans to issue bonds / corporate bonds as a form of bridging financing .
In the framework of the plan to issue bonds / bonds, the Minister of Finance has issued Minister of Finance Regulation No. 168 / PMK.08 / 2016 concerning Procedures for the Implementation of Bond Guaranteed for the Acceleration of Toll Road Construction Projects in Sumatra. The guarantee is given based on the mandate of Presidential Regulation Number 100 of 2014, in addition to providing guarantees for loans from PT Hutama Karya (Persero) in the context of toll road concessions in Sumatra.
Giving guarantees for bonds / debt securities is intended to increase the feasibility of issuing bonds and is expected to attract investors to buy bonds / bonds. The process of granting guarantees is certainly by considering the ability of the state finances, fiscal sustainability and fiscal risk management.