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Issues in PPP Infrastructure Development in Indonesia

In: Infrastructure Development and Public–Private Partnership

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  • Susumu Ito

    (University of Niigata Prefecture)

Abstract

This chapter discusses a case of PPP infrastructure development in Indonesia as a comparison case of the Philippines and to learn if there are any lessons for the Philippines. PPP infrastructure development in Indonesia started in the 1990s, but the substantial regulatory framework of PPP was not introduced until 2005 under the Yudhoyono administration. Subsequently, the PPP policy has been improved, including by the Presidential Regulation No. 38 of 2015 in 2015 under President Joko Widodo administration. With this background, the country’s PPP investment performance has been remarkable over the past few years. Of the USD 67.2 billion PPP investment in the country from 1990 to 2019, about USD 31 billion over three years (2016–2018) was invested accounting for over 46% to the total making Indonesia the largest PPP invested country within ASEAN and one of the top 10 emerging economies with improved PPP frameworks. On the other hand, there are still issues with the PPP program in Indonesia. This chapter identifies key issues of the PPP program: (1) regulatory framework, (2) institutional framework, (3) institutional capacity, and (4) financial facilities with policy recommendations. The important lesson is financial support by the government for promotion of PPP.

Suggested Citation

  • Susumu Ito, 2022. "Issues in PPP Infrastructure Development in Indonesia," Springer Books, in: Infrastructure Development and Public–Private Partnership, chapter 0, pages 79-98, Springer.
    • Handle: RePEc:spr:sprchp:978-981-19-1088-3_7
    DOI: 10.1007/978-981-19-1088-3_7
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