Indonesia Infrastructure Guarantee Fund

The increasing demand for infrastructure development to support Indonesia’s economic growth in the midst of budget has led the Government of Indonesia to provide fiscal support and a better framework in attracting private investment and participation of a measurable scale. Indonesia Infrastructure Guarantee Fund (IIGF) is intended to guarantee political risk of both central and local government as a Contracting Agency to provide certainty and comfort for investors. The availability of IIGF guarantee can increase the certainty of private sector’s participation and financing for infrastructure development in Indonesia.

IIGF also works with international and multilateral institutions in increasing its capacity to guarantee large scale infrastructure projects.

OBJECTIVES

• To improve creditworthiness and quality of PPPs in infrastructure projects by establishing a clear and consistent appraisal and claim framework for guarantees.
• To improve the governance and transparency of guarantee provision.
• To facilitate the deal flow for Contracting Agencies (i.e. Ministries, SOEs, Regional Governments) by providing guarantees to well-structured PPPs.
• To ring-fence Government contingent liability and minimize sudden shock to State Budget.