Indonesia International Infrastructure Conference and Exhibition 2011

Plenary Session : “Delivering the Fiscal Policy and Regulatory

Frameworks to Drive the Infrastructure Roadmap”

Fiscal Facilites to Accelerate

Public Private Partnership
(PPP)

Anny Ratnawati – Vice Minister of Finance

1
 PPP as a Key Policy
 The Government consistently commits to support
private sector involvement through PPP scheme.
 On-going improvement of the current PPP facilities:
 Land Fund
 Land Revolving Fund - IDR 2.3 trillion
 Land Capping Fund – IDR 4.9 trillion
 Infrastructure Fund
 PT Sarana Multi Infrastruktur (PT SMI) – IDR 2 trillion
 PT Indonesia Infrastruktur Financing (PT IIF)
 Guarantee Fund
 PT Penjaminan Infrastruktur Indonesia – IDR 3.5 trillion (in 2011)

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 Operationalization of the
Guarantee Fund

 Regulation on Infrastructure Guarantee :

 Presidential Decree No. 78 Year 2010;
 Minister of Finance Regulation No. 260/ PMK.011/ 2010.
 PT PII is implemented as a “single window” in
providing guarantee.
 Government supports cooperation of PT PII to
enhance the guarantee credibility.

3
 More Financial Facilities
to Strengthen PPP
 Project Development Services by PT SMI
 Present bankable projects;
 Apply competitive bidding.
 Viability Gap Financing (VGF)
 Government financial support in making financially viable
projects.
 Revolving Fund for Geothermal Project
 Government Investment Unit (PIP) is assigned to provide
the revolving fund.
 To give more confidence in dealing with the exploration
risk.

4
 Presence of PPP Projects
 The execution of Umbulan Water Project – East Java
and Airport railway Project are strongly supported by
the Government.
 Central Java IPP Project (2 x 1000 MW), worth USD 3
billion,
 In the end of tendering process;
 The first project will be guaranteed under the new guarantee
scheme.
 Lampung water treatment and supply project
 Being prepared by legal technical and financials advisors of
international repute;
 Will be offered in September 2011.
5
 Conclusion

 PPP development must be managed in a

transparent, credible, and professional way.
 Private and Public should give their best
contribution in developing infrastructure.