Thursday, 22 October 2020 | 05:49 WIB

Asset Securitization Needed to Support Domestic Infrastructure Developments

Asset Securitization Needed to Support Domestic Infrastructure Developments (beritabekasi)

JAKARTA, NNC - Capital market analyst Reza Priyambada from Binaartha Sekuritas considers securitization of assets to be a strategy to achieve financing for State-Owned Enterprises (SOE) and private companies. This is in the effort to support infrastructure development in the country.

"One of the SOEs has securitized its assets and its products have been responded quite positively by the markets,” Reza said in Jakarta, Sunday (12/03/2017).

He added that the increase in domestic financial instruments is expected to deepen financial markets in Indonesia and attract more investors.

At the end of August this year, state-owned toll road company Jasa Marga (IDX:JSMR) issued Collective Investment Contract of Asset Backed Securities (KIK EBA) for Toll Road Revenues Letter for  Jakarta-Bogor-Ciawi toll road.

Jasa Marga has securitized its revenues on Jagorawi toll roads over the next five years. With the asset securitization, the company obtains cash funds that can be used for other project development.

Reza Priyambada expects products related to infrastructure development to be more developed, thus the national economy grows higher.

Previously, Hoesen, Chief Executive Officer of Capital Market Supervisory of the Financial Services Authority (OJK), proposed to the Directorate General of Taxates to relax the tax on several investment instruments in the capital market in order to support infrastructure development to attract investors.

"With the relaxation of taxation on capital market instruments in infrastructure assets can grow more rapidly, more competitive, and attract both foreign and domestic investors," he said as reported by Antara.

He conveys the proposed capital market products of taxation of corporate taxation, limited investment mutual funds (RDPT), real estate investment funds (DIRE), asset-backed securities (EBA), and infrastructure investment funds (Dinfra).