Scope and Procedures for the Granting of Government Guarantees within the Infrastructure Sector

The Ministry of Finance (“Ministry”) has issued Regulation No. 95/PMK.08/2017 on Scope and Procedures for the Granting of Government Guarantees in the Infrastructure Sector by the Infrastructure Guarantee Enterprise (“Regulation 95/2017”).Regulation 95/2017 serves as an implementation of Article 2 (2) of Government Regulation No. 50 of 2016 on the Amendment to Government Regulation No. 35 of 2009 on State-Capital Participation in the Establishment of the Infrastructure Guarantee Enterprise, which required the Ministry to further elaborate upon scope and procedures for the granting of government guarantees within the infrastructure sector by the Infrastructure Guarantee Enterprise (Badan Usaha Penjaminan Infrastruktur– “BUPI”). [1] In this regard, Regulation 95/2017 sets out a number of provisions which relate to government guarantees within the infrastructure sector, specifically: [2]