Infrastructure Knowledge Exchange

This year, the Global Infrastructure Hub (GI Hub) again attended the Annual Meetings of the World Bank and IMF, held in Bali, Indonesia, alongside the meetings of G20 Finance Ministers and Central Bank Governors. Trade tensions dominated many of the multilateral meetings, with all sides calling for a workable solution to be found. The leaders and representatives of smaller nations among the G20 and the IMF and World Bank community were pointed in their remarks that escalation of tensions between major economic powers was already having exponentially greater impacts on smaller economies.

Inadequate financing for project preparation can result in projects being taken to procurement without the requisite readiness, which can lead to cost and time overruns during implementation, or a project that is not well-suited to the needs of the public.

Communication throughout infrastructure project preparation should be recognised as a strategic activity. It should factor in the importance of all key stakeholder groups towards the project, tailor communicative actions to engage and inform them and foster a supportive environment.

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.

Competition Regulator

Competition Regulator

PT Indonesia Infrastructure Finance (IIF) is designed as a catalyst for infrastructure financing in Indonesia.

PT Sarana Multi Infrastruktur (Persero) is an infrastructure financing company with 100% shares owned by the Government of Indonesia through the Minister of Finance Republic of Indonesia.

Committee for Acceleration of Priority Infrastructure Delivery (KPPIP).

PPP Unit

Ministry of Finance Republic of Indonesia

Communications Regulator

On December 30, 2009 the Government of Indonesia has established Indonesia Infrastructure Guarantee Fund or IIGF, as a State-Owned Enterprises (SOEs) under the Ministry of Finance which is responsible for providing government guarantees for infrastructure projects developed under the Public Private Partnership (PPP) scheme.

PDF is a facility provided by the Ministry of Finance to help Government Contracting Agency to prepare pre-feasibility study, bidding documents, and assist the GCA in the PPP project transaction until reaches the financial close.

VGF is a government support in the form of contribution of some of the construction cost, given in cash to a PPP project that already economically viable but has not had a financial feasibility.

Infrastructure guarantee is a guarantee given on GCA’s financial obligation to pay compensation to the project company in the occurence of infrastructure risks which has become GCA’s responsibility based on risk allocations agreed in the PPP agreement.

Mark Moseley, the GI Hub’s Senior Director for Legal Frameworks and Procurement Policies gave a presentation at a seminar on Future Ready: Sustainable Cities – Indonesia Infrastructure in Focus held in Jakarta, Indonesia on 7 March 2017.

Indonesian Ministry of Finance officials visiting Australia met with the GI Hub in Sydney today for discussions on infrastructure.

Although Indonesia’s PPP regulations date back to 2005, initially the number of actual project transactions between the government and private sector was very limited. The private sector’s interest in Indonesian projects was constrained by three main factors; the low quality of project preparation, low financial feasibility of projects (particularly those related to the determination of tariffs) and uncertainty related to the political risk of projects.