2. REGULATORY FRAMEWORK FOR PUBLIC-PRIVATE PARTNERSHIP IN THE PROVISION OF INFRASTRUCTURE

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 attractiveness and competitiveness of GOI's PPP program. There are:

• Presidential Regulation Number 38 Year 2015, issued by the government as replacement of presidential regulation number 67 year 2005 and its revised, 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 guarantee 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 Ministry of Finance Regulation Number 8 year 2016 regarding guideline on the government guarantee, whereas Ministry of Finance Regulation number 30 Year 2012 regarding contingency liability fund. It has applied to Palapa Ring Project, Umbulan Water Supply Project, Central Java Power Plan Project, Toll Road Projects and Bandar Lampung Water Supply Project.

• Ministry of National Development Planning/Head of National Development Planning Agency Regulation 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.

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

• Ministry of Home Affair Regulation Number 96 Year 2016 Regarding Availability Payment using the local budget (APBD) on PPP in Infrastructure Provision.

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

Figure 1. The Evolving Cross-sector PPP Regulatory Frameworks in Indonesia

Full details of the regulatory framework are available for consultation on the website at http://kpsrb.bappenas.go.id