The increasing demand for infrastructure development to support Indonesia’s economic growth in the midst of budget has led the Government of Indonesia to provide fiscal support and a better framework in attracting private investment and participation of a measurable scale. On December 30, 2009 the Government of Indonesia has established PT Penjaminan Infrastruktur Indonesia (Persero)/ PT PII as a State-Owned Enterprises (SOEs) under the Ministry of Finance which is responsible on providing government guarantees for infrastructure projects developed under the Public Private Partnership (PPP) scheme. PT PII guarantee is intended to guarantee political risk of both central and local government as a Contracting Agency to provide certainty and comfort for investors. The availability of PT PII guarantee can increase the certainty of private sector’s participation and financing for infrastructure development in Indonesia. PT PII also works with international and multilateral institutions in increasing its capacity to guarantee large scale infrastructure projects.