Infrastructure Development 2015 - 2019
Making PPP Works
The Government of Indonesia realizes the importance of private participation in accelerating infrastructure development in Indonesia, especially considering the limitation of government in funding the infrastructure needs. Based on an estimation of infrastructure funding needs in 2015-2019, the government is only able to fulfill 41.3% of total infrastructure funding needs, which is about IDR 4,796 trillion in total. Approximately 36.5% of the funding gap is expected to be fulfilled through cooperation with private using PPP scheme. The private participation, however, is expected not only to fill the funding gap but also to share knowledge and experience in the development, operation, and management of qualified infrastructure services. To that end, the Government of Indonesia has committed to continuously improve and innovate in increasing investment attractiveness and to assure that the involvement of private is not hampered.
At present, commitment to accelerate infrastructure development continues. The Government remains committed to pursuing equitable development of infrastructure projects in across Indonesia. In line with this, the Medium Term National Development Plan 2015-2019 (RPJMN 2015-2019) stated that the PPP is an alternative approach for infrastructure development.
The Government of Indonesia continues to evaluate and strengthen the policy in order to support acceleration and improvement of PPP preparation process. For the purposes, Government of Indonesia has enacted Presidential Regulation 38/2015 on Cooperation between Government and Business Entity in Infrastructure Provision as the new regulation for PPP implementation in Indonesia.
Started from 2009, BAPPENAS - as national development planning agency in Indonesia who responsible for PPP planning and implementation - issues PPP Book to provide the information on available infrastructure investment in Indonesia for potential investors or any other PPP stakeholders. 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 have already moved to tender process (already tendered) and success story of PPP projects in Indonesia.
This PPP Book 2018 is prepared to provide the latest preview and information about infrastructure PPP projects plan. Total projects in this PPP Book have 15 projects with 14 under preparation projects and 1 ready to offer projects also 8 already tendered projects. By the third year of Joko Widodo - Jusuf Kalla Presidency within the period 2015-2019, there are 12 PPP infrastructure projects under construction. These projects show PPP scheme can be a solution and also a challenge for acceleration of infrastructure development in Indonesia.
Last, we hope this PPP book can be a useful reference to any party involved in the PPP development in Indonesia.
Prof. Bambang P.S. Brodjonegoro, Ph.D.
Minister of National Development Planning/
Head of National Development Planning Agency