Well-Functioning Institutions

PPP institutional systems in the Philippines and the Republic of Korea center on their ministries of finance, while Indonesia's system is dispersed among several agencies. For example, the Indonesian Ministry of Finance secures budgets for PPP projects, and plans and provides government financial support for PPPs, while the National Development Planning Agency oversees project evaluations and management, and builds the capacity of other agencies to handle PPPs. The Indonesia Investment Coordinating Board, meanwhile, provides information on the PPP system and projects to investors, and the Coordinating Ministry for Economic Affairs of Indonesia coordinates PPPs with relevant organizations. To ensure a stable and systematic institutional system for PPPs, the government should clearly set out the functions of all ministries and government institutions for working on PPPs to avoid overlaps and conflicts of interest.

All three countries have national support agencies for PPPs for project development, feasibility studies, and project evaluations, though there are differences in their functions and roles. The Republic of Korea's PIMAC is independent; the Philippines' PPP Center is attached to NEDA, a government agency; and Indonesia has two central government PPP units. PIMAC may not finance PPP projects, but the PPP units of Indonesia and the Philippines can.