Non-Government Budget

Investment Financing (PINA)

PINA CENTER FOR PRIVATE INVESTMENT

Ministry of National Development Planning / National
Development Planning Agency - BAPPENAS
Republic of Indonesia
1. PINA DEFINITION
Non-Government Budget Investment Financing or Pembiayaan Investasi Non
Anggaran Pemerintah (PINA) is a facilitation scheme aimed to accelerate the
private investment financing of national priority projects, whose source of funding
is originated from non-government budget (non-APBN/APBD) and is fully supported
by government policies.

2. BACKGROUND AND PURPOSE

A. Optimizing State-Owned Enterprises (SOEs) and Private
Sector Contribution in Financing Development
• SOEs and private sectors contribution in financing
national development is expected to be at 58.7% or
IDR 2,817 trillion in RPJMN 2015-2019
B. Improvingthe Capacityof InfrastructureFinancing
• Mobilize potential long-term funds ( from
pension funds, insurance, SWF,etc.)
• Recycle the investment in "brownfield" and
“operational” category projects
• Leverage the financing capacity through
investment staging in every project
development phase
C. Debottleneck Financing Process inPriority Projects
• Infrastructure development involves many
stakeholders, therefore special arrangements are
often required to coordinate and encourage related
stakeholders especially in project preparation,
including resolving issues in financial and non-
financial aspects.
3. REGULATORY FRAMEWORK
Regulatory Framework for Facilitation of the
Non-Government Budget Investment Financing (PINA)

Presidential Regulation No. 58 of 2017 on the Ammendment of

1
Presidential Regulation No. 3 of 2016 on the Acceleration of the
Implementation of National Strategic Projects;
The National Strategic Projects sourced from the Non-Government
budget is coordinated by the Minister of National Development
Planning / Head of BAPPENAS, he may propose changes to the National
Strategic Projects list financed by the Non-Government Budget to KPPIP.

Presidential Regulation No. 20 of 2016 on the Ammendment of

2 Presidential Regulation No. 66 of 2015 on the National
Development Planning Agency;
The Ministry of National Development Planning/BAPPENAS has
the authority to facilitate and conduct the sourcing of domestic
and foreign financing, as well as the allocation of funds for
infrastructure development with the relevant institutions.
Presidential Regulation No. 66 of 2015 on The National
3
Development Planning Agency;
The Implementation of the Facilitation of Non-Government
Investment Financing (PINA) is in line with the duties and functions
of the Ministry of National Development Planning/BAPPENAS in
planning all policy and coordinating all the National Development
Stakeholders to achieve National Development goals.

PPN/BAPPENAS Ministerial Decree

4 No. Kep.70M.PPN/HK/12/2016 on the Government Facilitation
Team for Non-Government Budget Financing (PINA).
Minister of National Development Planning/BAPPENAS formed a
governmental facilitation team for the implementation of
facilitation activities of Non-Government Budget Financing (PINA).
4. FOCUS SECTORS
PINA is currently focused in connectivity, energy, manufacturing &
industry and housing, including several sub-categoriesof investment:

1. Connectivity
a b c d

Toll roads Ports Airports Railways

2. Energy
e f g h
Oil Coal Gas-pipeline PowerPlants
infrastructure infrastructure networks (IPP)
3. Manufacturing & Industry

Labor intensive Aerospace Technology

4. Housing

Affordable Urban
housing housing
5. PROJECTS CRITERIA
Government agencies (K/L), SOEs (BUMN) and private
enterprises may initiate and propose their project(s) to
be included in the PINA facilitation scheme, as long as
it fulfills 4 (four) key PINA projects criteria:

1. Project(s)withsignificanteconomics andsocialimpact
Assessment based on certain qualitative and
quantitative study on project’s economic and social
impact.

2. Project(s)must be feasibleand bankable

Assessment based on project’s investment feasibility
(project IRR) minimum 13% (IDR).

3. Project(s) fulfill PINA readiness criteria

Assessment by readiness criteria checklist, including
submission of documents: project profile, action plan
and funding plan, including other prerequisite document.

4. Project(s)relatedto nationaldevelopment objectives

Included in Long-Term National Planning Document
(RPJMN) and/or National Sectors’ Strategic Plan
Document

6. POTENTIAL SOURCES OF FUND

Funding source of PINA project(s) may originate from but are
not limited to the private investor, long-term funds,
infrastructure investment funds, domestic or global institution
funds, and also domestic or global capital markets.
7. PINA FINANCING SCHEME
PINA financing scheme may be applied to project(s) based on
various project development stages: greenfield, brownfield, and
operational.

Operational

Limited Concession Scheme

8. PINA FINANCING BY PROJECT STAGE

Preparation Operation
Construction Stabilization
(full-capacity)
Investor
does not
EQUITY have to
FINANCING - Perpetuity
invest for
notes
the whole
cycle
Supportive
regulation
DEBT and
FINANCING policies
 9. PINA FACILITATIONPROCESS

PINA CENTER FOR PRIVATE INVESTMENT

MINISTRY OF NATIONAL DEVELOPMENT PLANNING / NATIONAL DEVELOPMENT PLANNING AGENCY
REPUBLIC OF INDONESIA
Jalan Taman Suropati 2 , Jakarta Pusat 10310
Telp (+62-21) 390 3916, Fax (+62-21) 391 6118