RI targets foreign investment in toll roads to reach IDR 40 trillion

Bisnis.comJAKARTA – The Toll Roads Regulatory Agency (BPJT), Ministry of Public Works and Public Housing (PUPR) has set a target foreign investment who goes into business toll road at the national level will reach IDR 40 trillion in 2023.

Head BPJTDanang Parikesit, said the acquisition of foreign investment this year only reached about IDR 20 trillion. Investment the majority of foreigners still come from participation in toll roads already in operation.

Danang said foreign investment through bank loans only reached 2.3 percent of total loans in toll highway projects.

Meanwhile, Himbara still holds the largest share of toll road project loans with 45%, private banks 26%, regional banks 14.4% and non-bank financial institutions 14%.

“If it is now less than IDR 20 trillion, their equity stake [asing]we hope to do it twice next year from now on,” Danang said in Jakarta on Wednesday, 12/21/2022.

Danang revealed that the target is based on the expected number of toll roads that will be acquired by foreign parties, either through Indonesia Investment Authority (INA) partners or commercial entities.

According to him, the interested foreign investors come from foreign pension funds such as Canada, the Netherlands, but also from Hong Kong investors, namely Road King Expressway (RKE).

“Next year, it is likely that there will be many international acquisitions which will also enter other than through INA, partners are still in negotiation for commercial entities. Our target has been discussed, such as RKE, Canada wants to increase its portfolio in Indonesia, I hope it can double now,” he said.

Meanwhile, to increase the share of foreign investment through bank loans, the government is currently working on a new program to make it more utilized by business entities.

He explained that his party was preparing a plan takeaway financing to thwart the maturities of foreign loans which are much lower than those of domestic bank loans.

In addition, the scheme aims to ensure that business entities do not have difficulty in obtaining financing from domestic loans due to the high demand from banks for other sectors.

“On the toll road, the loan takes 15-20 years, while foreign banks use it for 5 years, but after 5 years, something has changed. Now we have IIF and SMI guarantee for take out financing,” he said.

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