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20 February 2018
Ministry of Finance Regulation 95/PMK.08/2017 was issued and took effect on July 19 2017 in order to implement Regulation 50/2016 on the amendment of Regulation 35/2009, which provides for the establishment of state-owned infrastructure guarantee corporations (BUPI). The only BUPI established to date is the Indonesia Infrastructure Guarantee Fund.
As mandated by Article 2 of Regulation 50/2016, Regulation 95/PMK.08/2017 sets out more detailed provisions on government guarantees for infrastructure projects, as well as the nature and scope of, and procedures governing, such guarantees.
A guarantee provided by a BUPI may cover infrastructure, political and default risks, among others. The earlier Regulation 260/PMK.011/2010, as amended by Regulation 8/PMK.08/2016, also covers:
An extension of a BUPI guarantee may be proposed to the Ministry of Finance or the BUPI by:
The proposal must state which partnership scheme will be employed for the purpose of the infrastructure project and any anticipated risks. The following documents must be provided:
To maintain the credibility of its guarantees, a BUPI must:
A BUPI must also submit regular reports on its operations to the Ministry of Finance.
For further information on this topic please contact Ammalia P Putri or Zefanya S Sahusilawane at Ali Budiardjo, Nugroho, Reksodiputro by telephone (+62 21 250 5125) or email (email@example.com or firstname.lastname@example.org) The Ali Budiardjo, Nugroho, Reksodiputro website can be accessed at www.abnrlaw.com.
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