Jakarta. The government has released a new regulation, which will provide a stronger legal ground for state-owned infrastructure guarantee fund Penjaminan Infrastruktur Indonesia to provide insurance for projects it guarantees.

The regulation, signed by Finance Minister Bambang Brodjonegoro on Oct. 6, but only made available online on Monday, will allow multilateral and overseas lenders to get assurance that the government-backed PII will cover any possible defaults over infrastructure projects being worked by state firms.

Sonny Loho, director general for state treasury, said on Monday that Indonesia needs up to Rp 4,796 trillion ($351 billion) from 2015 until 2019 to fund its infrastructure development projects set by the government, but unfortunately, the state can only provide up to 30 percent of the needed fund.

“The government needs to find other funding sources,” he said.

Under the regulation, a fully owned SOEs can secure the guarantee facility without president’s approval, but those not fully owned, like the ones that the government has majority or minority stakes need to secure president’s approval before getting the facility.

PII has secured Rp 5.8 trillion in its coffers, which is its maximum guarantee capability until the end of this year.

PII currently guarantees several projects, including Batang power plant project in Central Java, two mine mouth power plants in South Sumatra and water supply systems in Bandar Lampung and West Semarang.