2.1. Cross-Sector Regulator Framework

The Government of Indonesia (GOI) has taken a series of major step to refine the PPP Policies and regulatory framework in order to improve the attractive and competitiveness of GOI's PPP program. There are:

• Presidential Regulation Number 38 Year 2015, issued by government as replacement of Presidential Regulation number 67 year 2005 and its amendment, establishing the cross-sector regulation framework for implementing PPPs in the provision of infrastructure. The successive amendments have established clearer and more detailed stipulations about unsolicited proposal, cooperation agreement, return on investment with the payment by the user in the form of tariffs (user charge) or availability payment, government support and guarantees to project, among other points;

• Presidential Regulation Number 78 year 2010 regarding government guarantee on PPP infrastructure project. Ministry of Finance regulation number 260 Year 2010 as amended by Ministerial Regulation of Finance No. 8 year 2016 regarding guideline on government guarantee. The Government guarantee has been applied on Palapa Ring Project, Umbulan Water Supply Project, Central Java Power Plan Project, and Toll Road Projects;

• Ministerial Regulation of National Development Planning/Head of National Development Planning Agency Number 4 Year 2015 regarding operational guideline for the PPP in Infrastructure Provision.

• Head of National Procurement Agency (LKPP) Regulation Number 19 Year 2015 Regarding Guideline for procurement of Business Entity on PPP in infrastructure provision.

• Ministerial Regulation of Finance Number 190 Year 2015 Regarding Availability Payment on PPP in Infrastructure Provision.

• Ministerial Regulation of Home Affair Number 96 Year 2016 Regarding Availability Payment on Regionl PPP in Infrastructure Provision.

• Ministerial Regulation of Finance Number 223 Year 2012 Regarding Viability Gap Funding.