Jakarta -Minister of Transportation Budi Karya Sumadi witnessed the signing of the Makassar-Parepare Public Railway Project Financing Agreement between PT Celebes Railway Indonesia (PT CRI) and PT Indonesia Infrastructure Finance (PII) PT Sarana Multi Infrastruktur/SMI (Persero) and PT Bank Syariah Indonesia, Tbk , Thursday (3/6).

"This is an example of our success in building a railway project, which was built for the first time by the private sector, because so far the government has built it with the state budget," said the Minister of Transportation after witnessing the signing of the Senior Term Loan Syndicate Facility and Musyarakah Mutanaqisah Financing ("MMq").

The Minister of Transportation expressed his gratitude to the Ministry of Finance for providing their support through PT. SMI and PT. PII, so that the Makassar-Parepare Railway project with the Government and Business Entity Cooperation (PPP) scheme can be implemented.

“As directed by Mr. President, that we have to think creatively so that the project can continue in the midst of the government's limited budget. With this creative funding, this project can be implemented," said the Minister of Transportation.

The Minister of Transportation said that the government provides vast opportunities for the private sector/business entities and the public, to take part in the provision of transportation infrastructure through the Government Cooperation Financing scheme with Business Entities (KPBU). With this scheme, it is hoped that infrastructures that are economically and commercially feasible can be realized soon.

“I invite investors to develop other transportation projects through creative funding such as PPPs. We will build New Ambon Port, Tanjung Carat Port, Orchid Port, Garongkong Port, and the ongoing development of Patimban Port. We even have projects in Palembang, Lampung, and the Railway in Central Kalimantan. If the private sector has an interest in investing, we will help and will be supported by the Ministry of Finance," said the Minister of Transportation.

In the implementation of the Makassar-Parepare Railway PPP project, the Ministry of Transportation received support from the Ministry of Finance through the Project Development Facility (PDF), where PT. Indonesia Infrastructure Guarantee Fund (Persero) was assigned as the facility implementer. This PDF facility starts from the preparation of the Final Business Case (FBC), assistance in the procurement of the Implementing Business Entity, to the stage of fulfilling the financing (Financial Close).

By obtaining this financing, it is hoped that it will reduce the financial burden of the state in financing infrastructure development, especially transportation infrastructure.

Funding for the Makassar – Parepare Railway line construction project in South Sulawesi will be implemented in 2 parts, namely: the first part, to finance construction, examination, and testing, as well as the completion of the Garongkong Port Station Emplacement as a part of Segment B Railway Infrastructure and Infrastructure. The F segment of the Makassar – Parepare railway line, and the second part, to finance interest during the construction period, using both conventional and sharia schemes.

Also attending the event, Director General of Railways Zulfikri, President Director of PT. PP Novel Arsyad, President Director of PT. Celebes Railway Indonesia Helmi Adam and President Director of PT. PII Muhammad Wahid Sutopo.(MM/RDL/LA/JD)