This article has been translated by PwC Indonesia as part of our Indonesia Infrastructure News Service. PwC Indonesia has not checked the accuracy of, and accepts no responsibility for the content.
The Jakarta Post - Melalui mandatnya, PII mendukung percepatan dan penguatan infrastruktur air
4 June 2024
To support water sector infrastructure, especially its financing, PT Penjaminan Infrastruktur Indonesia (PT PII) or the Indonesia Infrastructure Guarantee Fund (IIGF), took part in the 10th World Water Forum (WWF) running from May 18 to 25, 2024, at the Bali Nusa Dua Convention Center, Bali.
IIGF CEO M. Wahid Sutopo pointed out that the IIGF's engagement in the highest echelons of the WWF would strengthen collaboration in infrastructure, particularly in the water sector among stakeholders, including the private sector, investors and international lenders.
According to Sutopo, improved water infrastructure is expected to spur public prosperity and economic growth. "The provision of clean water infrastructure is part of our endeavor to mitigate the impact of climate change from land subsidence as a result of the massive utilization of ground water in several big cities in Indonesia," he said.
"Apart from that, the development of water infrastructure can also lead to improved sanitation and community health," Sutopo said.
In a presentation, themed Opportunity for Utilizing Green Financing Instruments in the Water Sector, Sutopo explained the significant role that the IIGF plays in accelerating and strengthening water infrastructure projects in Indonesia, as reflected in the support from guarantors of the six water projects whose financing was conducted through a public-private partnership (PPP) scheme, involving drinking water provision system (SPAM) projects SPAM Umbulan, SPAM Jatiluhur, SPAM Karian Serpong, SPAM Bandar Lampung, SPAM Semarang Barat and SPAM Pekanbaru.
The six water projects required investment totalling Rp 7.87 trillion (US$484.1 million), with a total capacity of 15,580 liters per second (l/s) and the water flow benefiting 5 million people in Indonesia.
"Strategic planning, stakeholder engagement, financing structure and operation excellence are among the crucial factors in supporting the success of implementing the water sector under the PPP scheme as part of creative financing in developing sustainable infrastructure," Sutopo opined.
Meanwhile, in his presentation, themed Critical Elements on Enabling Water Financing for Sustainability, the IIGF's COO Andre Permana revealed a range of critical elements regarding water sector financing, especially under the PPP scheme. "Studying the lessons learned in the water sector previously, counting the balanced risk among the parties involved and commitment and capacity from the government and the authorities are crucial for the success of sustainable water sector infrastructure projects," he said.
The May 24-2024 event also saw the IIGF partake in the forum discussion, the 5D Session, with the topic Special Schemes and Incentives Promoting Green Finance. This forum also included the water, economy and climate change global lead at the World Bank, the senior auditor of the National Development Planning Agency (Bappenas) and the project lead at Nature Conservancy.
During the event, the IIGF also explored collaboration with the French Embassy in Indonesia through the French Business Delegation Forum held at the French Pavilion, in the Country Pavilion of the 2024 WWF area, at the Bali Nusa Dua Convention Center.
In the discussion forum, attended mostly by French business players, especially those focused on the water sector, investors and related stakeholders along with the IIGF's CEO and business director gave presentations to share knowledge related to the IIGF's mandate as the Finance Ministry's Special Mission Vehicle (SMV) that advocates sustainable infrastructure through creative financing schemes and especially the implementation of water sector infrastructure projects.
