Friday, June 14, 2024

Indonesia secures water supply project financing at World Water Forum 2024

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Minister of Public Works and Housing Basuki Hadimuljono signed two significant project financing agreements at the World Water Forum 2024. These agreements, worth a total of Rp5.4 trillion, were formalized following the High Level Panel of the WWF on Tuesday, May 21, 2024.

The projects include the Karian-Serpong Drinking Water Supply System (SPAM) in Banten, valued at Rp2.4 trillion (US$ 150 million), with a capacity of 4,600 liters per second, and the Sepaku SPAM in the new capital Nusantara, valued at Rp3 trillion.

“These are two concrete outcomes from the 10th WWF. There will be other agreements during this forum,” Basuki said in a media statement on May 22, 2024.

Basuki emphasized that these agreements reflect the government’s commitment to creating innovative financing schemes. Both SPAM projects will be built and managed by South Korean companies.

The financing agreement for the Karian-Serpong SPAM involves the International Finance Corporation, Asian Development Bank, K-Exim, and PT Karian Water Service. This project is designed to provide drinking water for 1.84 million people in DKI Jakarta and Banten, specifically in the cities of Tangerang and South Tangerang.

“I am optimistic that the Karian-Serpong SPAM project will be completed soon with the signing of this financing agreement,” Basuki said.

Regarding the Sepaku SPAM, Basuki highlighted that the support from the South Korean government will accelerate its construction in the new capital Nusantara. The Sepaku SPAM, with a capacity of 300 liters per second, is scheduled to begin operations in July 2024.

Additionally, the Nusantara Capital Authority (OIKN) has partnered with the Indonesia Investment Authority (INA) to attract foreign investment to the new capital. This partnership was formalized through a Cooperation Framework (CF) signing in Denpasar, Bali, on Sunday, May 19, 2024.

Head of OIKN, Bambang Susantono, welcomed the collaboration, which allows OIKN to leverage INA’s global network. Covering more than 250,000 hectares, Nusantara aims to become a “world-class city for all” by 2045.

“The signing of the cooperation framework with INA follows the President’s directive for INA to facilitate OIKN in realizing foreign investments in Nusantara,” said Bambang Susantono.

He mentioned that a Letter to Proceed (LTP) from OIKN to Masdar will be presented before the Coordinating Minister for Maritime and Investment Affairs and the Minister of Energy and Infrastructure of the United Arab Emirates (UAE) on May 21.

This marks a significant step towards realizing foreign investments in Nusantara through Public-Private Partnership (PPP) schemes.

According to Bambang, the partnership aims to develop Nusantara as a dynamic and sustainable economic hub. Nusantara spans an area approximately three and a half times the size of Singapore and four times larger than Jakarta.

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