WIll JETP financing pose a new debt burden to Indonesia?
JETP concessional financing amounts to US$ 6.9 billion. Concessional financing is financing with low interest rate that may require sovereign guarantee from the Government of Indonesia. Therefore, concessional financing that is channeled directly to the Government of Indonesia or that would be guaranteed by the Government of Indonesia bears the risk of adding to Indonesia's debt burden.
In addition, there is also JETP financing that is likely to require Indonesian sovereign guarantee, namely the US$ 2 billion MDB guarantee identified in the CIPP. The detailed mechanism for unlocking this type of financing are still being discussed.
Other types of financing that are not concessional financing or MDB Guarantee do not add to Indonesia's debt burden when channeled to a non-SOE entity.
More details regarding JETP financing and be found in Chapter 7 of the CIPP.
