Inflation Control and Financial Facilities Strategy
The Government has Enacted Various Reforms to Accelerate
Infrastructure Provision
$ Fiscal Reforms
Viability Gap Funding (VGF)
Increase project financial feasibility by
contributing up to 49% of the construction
cost (MoF Reg. No. 223/2012)
Availability Payment
Issuance of regulatory framework to allow
annuity payment by the Government during
concession period to concessionaire since
project operation based on infrastructure
service availability (MoF Reg. No. 190/2015
for Central Gov'r and MoHA Reg. No.
96/2016 for Regional Gov't.)
Land Revolving Fund
A revolving-fund sourced from State Budget,
to accelerate land acquisition (MoF Reg. No.
220/2010)
Risk-sharing Guidelines
IIGF has issued risk allocation and mitigation
guidelines for PPP project
Tax Incentives (Tax Holiday)
MoF Reg. No.35/2018 allowed 100% Tax
Holiday for 17 Pioneering Industries for 5
20 years depending on the investment value
KPPIP
Institutional Reforms
KPPIP is actively involved in accelerating
delivery of priority infrastructure projects
PT. Sarana Multi Infrastruktur
Merging between PT. SMI and Gov't
Investment Center (PIP) to become an
infrastructure funding company
Indonesia Infras. Guarantee Fund (IIGF)
IIGF has the potential to provide project
guarantee for non-PPP projects
PPP Unit
Provide facilities to help GCA on preparing
PPP project (PDF/TA)
BLU LMAN
The State Asset Management Agency (BLU
LMAN) is mandated to provide land fund for
National Strategic Projects to ensure timely
land acquisition process
Indonesia Infrastructure Guarantee Fund
(IIGF)
IIGF has the potential to provide project
guarantee for non-PPP projects
Source: Committee for Acceleration of Priority Infrastructure Delivery (KPPIP)
4/4 Regulatory Reforms
Direct Lending
Allow guarantee for direct lending to SOE
to accelerate financial close process for
infrastructure projects (Presidential Reg. No.
82/2015)
Land Acquisition
Stipulate land acquisition acceleration
based on Law No. 2/2012 (Presidential Reg.
No. 148/2015) and land acquisition fee
payment for impacted community
(Presidential Reg. No.56/2017)
Economy Packages
Conduct deregulation for issues hindering
infrastructure delivery and develop a task
force under CMEA to ensure the
effectiveness of economic packages
implementation
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