State enterprises should look for alternative financing

State enterprises should look for alternative financing

Illustration. (ANTARA /Puspa Perwitasari)

Jakarta (ANTARA News) - A deputy at the office of the Minister for State Enterprises (BUMN) Aloysius Klik Ro said BUMNs should be active in seeking to utilize long term public funds as an alternative financing scheme.

Aloysius said alternative financing could reduce BUMN dependence on state budget in carrying out its assignment in building infrastructure project.

"Perpetual Securities (SBP) issued by PT. PP (Persero) for PLTU Meulaboh is expected to inspire other BUMNs to use a similar concept in financing infrastructure projects with domestic and foreign public fund," he said.

A sustainable financing alternative could help the government in financing its massive infrastructure projects, he said during the signing of an agreement on Perpetual Securities between PT. PP Tbk and Ciptadana at the National Development Planning Board (Bappenas) here on Tuesday.

Bappenas through a team of Non Budget Investment Financing (PINA) facilitates PLTU Meulaboh, a 2x200 megawatt steam powered electricity plant, to be built by Independent Power Producer (IPP), in seeking alternative financing from non budget fund.

The IPP is a consortium of PT. PP Energi, China Datang Overseas Investment Co. (CDTO), and PT. Sumberdaya Sewatama.

The PINA team facilitates the first issuance the (SBP) to raise fund for projects financed with non budget funds of the government.

Chief executive of the Financial Service Authority (OJK) Hoesen said the SBP issued by PT PP could be an underlying of investment management product at capital market for infrastructure.

He said he would continue to push for the utilization of various instruments in capital market to finance infrastructure projects.

"We appreciate creative breakthrough in financing infrastructure in Indonesia by Bappenas and hope that the breakthrough would inspire other BUMNs to follow the lead in financing various infrastructure projects," he said.

(AS/B003)
(T.SYS/A/H-ASG/B003)

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