Inflation Control and Financial Facilities Strategy
Infrastructure Projects and Financing Schemes
Promotion of Infrastructure Development to Accelerate Economic Growth
1
Infrastructure Development is a Key Priority
Infrastructure Development in order to:
1. Accelerate growth particularly in rural areas
2. Support industrial development and tourism
3. Reduce unemployment and poverty
Infrastructure fundraising needs: $357.9 bn (or equivalent to IDR4,796.2 tn)
Broad
Objective
Core
Mandates
1
1
245 National Strategy Projects under National Medium Term Plan for 2015
2019 with an estimated total cost of IDR 4,197 tn (USD 313 bn)
1
37 priority infrastructure projects with an estimated cost of IDR 2,490 tn (USD
180 billion)
Additional
Mandates
1
-
Majority of 37 priority projects are expected to commence commercial operation
by 2018 2022
Establishment of PPP Unit
Champion project preparation and acceleration of the PPP
agenda in Indonesia
-
Improve quality of project selection under KPPIP OBC criteria
Support project preparation through PDF support and highly
qualified transaction advisors
Act on behalf the Minister of Finance in providing government
support and approvals for projects
Coordinate all public finance instruments
Provide input for PPP Policy program Development and Regulations
Implement capacity building for Govt. Contracting Agency (GCAs)
One stop shop for PPP promotion & Information
Budget
Central & regional budget
(special allocation fund &
rural transfer)
• Primarily to support basic
infrastructure projects:
Food security:
Irrigation, dams etc.
Maritime: Seaports,
shipyards etc.
Connectivity: Village
roads, public
transportation etc.
Public Private Partnership
Certain infrastructure projects to be funded and operated through a
partnership between the Indonesian government and the private sector
Projects ready for auction under the PPP Scheme:
Toll roads projects such as Balikpapan-Samarinda and Manado-Bitung
Railway projects such as an express line into Soekarno-Hatta
International Airport
Water supply projects such as the West Semarang Project
Various government support for PPP:
-
-
Project Development Facility (PDF): Helps Government
Contracting Agencies (GCAs) in project preparation and
transaction
Viability Gap Fund: improves financial viability of PPP projects
Government Guarantees: Supports PPP projects' bankability by
providing sovereign guarantees
Infrastructure Financing Fund: Provided through PT SMI and IIGF
Availability Payment (AP): GCA pays private partner based of availability
of infrastructure services
Note: OBC: Outline Business Case; PDF: Project Development Facility; GCA: Government Contracting Activity
Source
SOE & Private Sector
Government to inject capital into SOES:
Intended multiplier effect to develop more
infrastructure projects
• Key focus areas:
Infrastructure and maritime development
Transportation and connectivity
Food security
● Medium term infrastructure developments to
focus on:
Water Supply
Airports
Seaports
Electricity and power plants
Housing
Mining
Ministry of Finance; Bappenas; KPPIP: "Komite Kebijakan Percepatan Penyediaan Infrastruktur" or National Committee for the Acceleration of Infrastructure Delivery
Source: Committee for Acceleration of Priority Infrastructure Delivery (KPPIP)
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