Finance Minister Issues New Regulation to Guarantee National Strategic Projects
Date 7 April 2021
Minister of Finance Sri Mulyani Indrawati Wednesday (31/3/2021) issued Regulation of Minister of Finance Number 30/PMK.08 of 2021 on Procedures for Central Government Guarantee Granting for Acceleration of National Strategic Projects Implementation.
This newly-issued regulation has been enacted since 1 April 2021.
This regulation is an amendment to the previous regulation, namely Minister of Finance Regulation Number 60/PMK.08 of 2017 that aims to accommodate the development dynamics and the need of the National Strategic Project implementation that requires more efficient, effective, transparent Government guarantees in order to improve investor confidence to be involved in the National Strategic Projects development.
Regulation of Minister of Finance Number 30/PMK.08 of 2021 consist of implementation regulations from Government Regulation Number 42 of 2021 on the Ease of National Strategic Projects as a derivative regulation of Law Number 11 of 2020 on the Job Creation.
There are some changes to Regulation of Minister of Finance Number 30/PMK.08 of 2021 compared to the previous regulation.
First, the provision of the Infrastructure Assurance Agency (BUPI) involvement in providing the Government guarantees in order to accelerate the implementation process in providing the Government guarantees and reducing direct risk to the State Budget.
The involvement of the BUPI as a State-Owned Enterprise under Ministry of Finance is aimed to support the Government in terms of guarantees so that the implementation can be effective and professional, while considering the development purpose of National Strategic Projects in constructing public infrastructure and improving synergy with other guarantee policies.
Second, the arrangement regarding the political risk scope in assertively guaranteeing the National Strategic Projects. This regulation is expected to provide regulatory certainty to the Person in Charge of the National Strategic Projects and other related stakeholders for any political risks.
Furthermore, there are three schemes of the provisions for the BUPI involvement in providing the Government guarantees. They are:
First, direct granting of the Government guarantees by the Government itself.
Second, joint granting that is given by the Government and the BUPI.
Third, direct granting of the Government guarantees by the BUPI itself.
In providing the Government guarantees, the BUPI can be involved, starting from processing of guarantee proposals, implementing guarantees, monitoring and evaluating the implementation of guarantees.
The new regulation is expected to smooth the process in providing the Government’s guarantees for National Strategic Projects.
It is also aimed at improving investor interest and investment climate in Indonesia, especially for the National Strategic Projects. (PR of Ministry of Finance/UN) (AP/EP)