The government support and guarantee for this project are required. For government support there are two financial assistance available, which are viability gap funding and availability payment.
For the implementation of this program, the Government established a one-stop guarantee policy, PT Penjaminan Infrastruktur Indonesia (also known as the Indonesian Infrastructure Guarantee Fund or "IIGF") which administers all Government Guarantees. If the capitalization of IIGF is insufficient, the Regulation allows for the MOF to act as a co-guarantor circumstances.
An IIGF guarantee is available only for Infrastructure projects qualifying under the PPP Regulations. IIGF can guarantee specified financial obligations of a GCA for a PPP project, including GCA contingent financial obligations, upon the occurrence of certain risks. The GCAs responsibility to make availability payments can also be covered under this guarantee scheme. However, the guarantee package does not include coverage of general/ commercial risks for a PPP project.
More detailed about government support and guarantee will be provided in subsequent studies.