4. PPP JOINT OFFICE

Due to the nature of PPP which requires cross-sector and cross-agency coordination to make sure the success of PPP project, a coordination system between government agencies is needed. Responding that needs, in December 2016, PPP Joint Office (Kantor Bersama KPBU Republik Indonesia) was established.

This PPP Joint Office was established to assist the GCA, investors, and answer any queries about PPP Scheme. The PPP stakeholders from the central government and institution agreed to establish this PPP Joint Office in Jakarta. This PPP

Joint Office now acts as 'one stop service' for PPP. Hence PPP could be accelerated in an accountable method.

PPP Joint Office is a coordinating system between above-mentioned agencies to accelerate PPP project implementation in Indonesia. It has no structural system between the agencies but works as a coordination system. The functions of PPP Joint Office are:

1. Coordination between government agencies, GCA and SPV related to PPP project.

2. Facilitate all parties related the project in order to accelerate PPP project implementation in Indonesia.

3. Capacity building related to PPP project implementation.

The member of PPP Joint Office are Ministry of National Development and Planning (Badan Perencanaan Pembangunan Nasional - BAPPENAS/Kementerian Perencanaan Peembangunan Nasional), Ministry of Finance (Kementerian Keuangan), Coordinating Ministry of Economic Affairs (Kementerian Kooordinator Bidang Perekonomian), Ministry of Home Affair (Kementerian Dalam Negeri), Indonesia's Investment Coordinating Board (Badan Koordinasi Penanaman Modal - BKPM), National Public Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah - LKPP), and Indonesia Infrastructure Guarantee Fund -IIGF (PT. Penjaminan Infrasruktur Indonesia - PT. PII).

Each of PPP Joint Office members has its own role and authorization in implementing PPP project. Each of the member's roles, timeframes, and workflows related to PPP pipeline is shown in FIGURE 2.

Coordinating Ministry of Economic Affairs (Kementerian Kooordinator Bidang Perekonomian) will act as a debottlenecking role.

Directorate for PPP and Financial Engineering (KPSRB) Bappenas will facilitate GCA in project selection, identification and preparation. This directorate will ensure that the PPP project is in line with PPP planning regulation and national development plan and policies. Another function of Bappenas is to make sure that the project plans are executable in the future.

Ministry of Finance is in charge in evaluating the financial and economical aspect, and making a recommendation about government support to the GCA.

Ministry of Home Affair will evaluate the project value and the allocation of Availability Payment regarding regional fiscal. Only PPP project with AP scheme from the regional government will be evaluated by MOHA.

Indonesia's Investment Coordinating Board (BKPM) role is to make sure that the investor credibility, and also helping the GCA by inviting interested private sector in market sounding.

National Public Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah - LKPP), will act as transaction probity, and make sure that tendering progress will be fair, and in the corridor of PPP framework.

Indonesian Infrastructure Guarantee Fund is responsible in evaluating the risk analysis and its mitigation, and also examining the financial and economic calculation to provide the guarantee for the PPP project.

Another government body, KPPIP (Committee for Acceleration of Priority Infrastructure Delivery) is positioned as the Project Management Office (PMO) for priority projects. KPPIP has a crucial role in project development and implementation, starting from project selection up to groundbreaking for top priority projects. KPPIP also has a central role in coordinating related stakeholders in project implementation through the action plan development facilitation, monitoring and debottlenecking as well as providing incentives and disincentives schemes to accelerate the project realization. Some of PPP projects are included in priority projects and national strategic project (PSN).

Figure 2. PPP Joint Office Workflow Related PPP Pipeline