Until 2019, the State Sukuk Charges 14 Railway Projects

By : Wiyanto Dan Aldo Bella Putra | Wednesday, August 22 2018 - 16:00 IWST

PT Kereta Api Indonesia (KAI) (Toto Ist))
PT Kereta Api Indonesia (KAI) (Toto Ist))

INDUSTRY.co.id - Jakarta - Until 2019 at least Rp. 7.1 trillion of State Sukuk is used for financing 14 railway infrastructure development projects which are not only concentrated in Java but also to Sumatra and Sulawesi.

The Directorate General of Financing and Risk Management (DJPPR) recorded 14 projects which began in 2018 from Cirebon-Kroya segment 3 to Jombang, Maja-Rangkasbitung, Medan Layang Train, Rantauprapat-Kotapinang, Binjai-Besitang-Langsa, Makassar-Pare-pare, and Kuala Tanjung College.

"The Ministry of Transportation, especially the Directorate General of Railways is indeed the most active in the utilization of State Sukuk. The Ministry of Transportation has begun to use Islamic financing since 2013 to build the Jatinegara to Kroya double track railroad, "said Ms. Loto Srinaita Ginting, as Acting. Director of Sharia Financing, DJPPR, in Jakarta, Tuesday (20/8 2018).

Recorded from 2013 to 2017 infrastructure development funds from the state sukuk used by the Ministry of Transportation to build railways in Java and Sumatra reached Rp 16.71 trillion.

Government Sukuk was launched by the government based on Law Number 19 of 2008 concerning State Sharia Securities, while project financing through State Sukuk issuance has a legal umbrella in the form of Government Regulation Number 56 of 2011.

"The interesting thing about sharia bonds or sukuk issued by the government gets tax privileges. The Director General of Taxation approved the abolition of the imposition of income tax (PPh) for investment in State Sukuk, "he said.

The abolition of the Income Tax requires three conditions, namely the party or entity that issues sukuk or SPV (Special Purpose Vehicle) that is part of the government, the establishment of the entity is derived from the state budget, and all revenues obtained are for the state budget.

And most importantly, he continued, the bookkeeping of the entity will be supervised by the state functional supervisor, namely BPKP, BPK and Inspectorate General of the Ministry of Finance. So that indeed Islamic financing for infrastructure is a project financed by the government.

The development of Railway infrastructure is indeed a priority for the government, in the National Railway Master Plan (Ripnas) which is targeted to 2020, rail transport capacity reaches 600 million passengers a year while freight transport becomes 60 million tons / year.

News Comment

Today's Industry

NORD-DuoDrive.jpg: The innovative and patented DuoDrive geared motor reaches outstanding system efficiency Image: NORD DRIVESYSTEMS

Selasa, 17 Mei 2022 - 14:00 WIB

NORD DRIVESYSTEMS at LogiMAT in Stuttgart From 31st May to 2nd June 2022 NORD will present innovative drive solutions for intralogistics

The specialist LogiMAT exhibition in Stuttgart offers as comprehensive overview of the intralogistics and process management market. As one of the market leaders for drive technology, NORD presents…

President Jokowi attends the meeting between ASEAN leaders and American entrepreneurs at Intercontinental the Willard Hotel, Washington DC, Thursday (05/12). Photo by: Laily Rachev

Selasa, 17 Mei 2022 - 13:00 WIB

President Jokowi Invites US CEOs to Boost Cooperation with Indonesia

President Joko “Jokowi” Widodo has invited company CEOs in the United States to boost cooperation with ASEAN countries, particularly Indonesia.

President Jokowi, President Biden, and ASEAN Leaders on a group photo prior to the dinner, at the White House, Washington D.C., Thursday (05/12)

Selasa, 17 Mei 2022 - 12:28 WIB

President Jokowi, ASEAN Leaders Attend Dinner Hosted by US President

President Joko “Jokowi” Widodo Thursday (05/12) attended a dinner with the leaders of ASEAN countries hosted by President of the United States Joe Biden at the White House, Washington D.C.

(Photo: © 2022 KRAIBURG TPE)

Selasa, 17 Mei 2022 - 11:23 WIB

TPE unleashes benefits for pet accessories

The pet care market is rapidly expanding as pet ownership increases, as does spending on pet food, grooming tools, and accessories. Pet owners are significantly concerned about the prevalence…

Sergey Sedov, Founder and CEO of Robocash Group

Jumat, 13 Mei 2022 - 16:15 WIB

Robocash Group reached 2 BN USD of disbursement and issued audited financial report of 2021

Robocash Group publishes the audited combined financial statements for the year ended 31 December 2021. The Group reached an all-time high 2 BN USD of issued financing and is expected to increase…