Infrastructure Development 2015 - 2019
Making Progress on PPP Development
Government of Indonesia (GoI) has highlighted that approximately IDR 2,877 trillion (60% of total infrastructure funding needs) is required to fill the gap of total infrastructure funding needs. It is essential to improve the private participation in accelerating infrastructure development in Indonesia up to 40% through Public Private Partnership (PPP) scheme as an alternate creative financing. Furthermore, to advance the quality of infrastructure services, private entity expected to contribute in sharing their knowledge and experience in the development, operation, and management of qualified infrastructure services. Moreover, the Government of Indonesia has committed to continuously improve and innovate in increasing investment attractiveness and to assure involvement of private sector.
The new government continues to evaluate and strengthen the policy in order to support acceleration and improvement of PPP preparation process. For the purposes, the Presidential Regulation 67/2005 and its amendment has been reviewed and revoked through Presidential Regulation 38/2015 on Cooperation between Government and Business Entity in Infrastructure Provision. Moreover, it is strengthened with Ministry of National Development Planning No.4/2015 regarding operational guideline for the PPP in Infrastructure Provision, Head of National Procurement Agency (LKPP) Regulation No.19/2015 regarding guideline for procurement of Business Entity on PPP in Infrastructure Provision, Ministry of Finance Regulation Number 190 Year 2015 Regarding Availability Payment on PPP in Infrastructure Provision and Ministry of Home Affair Regulation Number 96 Year 2016 Regarding Availability Payment on Regional PPP in Infrastructure Provision.
For over 2 years, The government has showed commitment on acceleration of infrastructure development in Indonesia. There are 7 projects which current status are under construction and 1 project is financial closed with total investment about IDR 81.43 trillion. Further, there are several projects that on progress to financial close.
Started from 2009, BAPPENAS - as national development planning agency in Indonesia who is responsible for PPP planning and implementation - issues PPP Book to provide the information on available infrastructure investment in Indonesia to potential investors. Projects listed in PPP Book are results of rigorous review and screening process by BAPPENAS in compliance with Ministerial Regulation of National Development Planning 4/2015. The projects are organized into two categories based on their readiness level, those are ready to offer projects and under preparation projects. PPP Book also provides information related projects that have already moved to tender process (already tendered).
This PPP Book 2017 is prepared to provide the latest preview and information about infrastructure PPP projects plan. Total projects in this PPP Book are 22 projects with 21 under preparation projects and 1 ready to offer projects also there are 17 already tendered projects.
We hope this PPP book can be a useful reference to any party involved in the PPP development in Indonesia.
Jakarta, December 2016
Prof. Bambang P.S. Brodjonegoro, Ph.D.
Minister of National Development Planning/
Head of National Development Planning Agency