PathwaystoTackleRegionalDisparitiesAcrosstheArchipelago

“ ENCOURAGING ALTERNATIVE FINANCING THROUGH PUBLIC PRIVATE PARTNERSHIP ”

SriBagusGuritnoDirekturKerjaSamaPemerintahSwastadanRancangBangun

MinistryofNationalDevelopmentPlanning/Bappenas

Jakarta,10July2018

Planning for Infrastructure Development Risk Management 1

PPP VGF DAK StateBudget

PrivateFinancing

3

STEP BETTERPLANNING

FORBETTERSERVICEOUTCOME

Smarter Funding 2

RISKIdentification

RISKAllocation

RISKMitigation

Planning Tools 3

VfM PSC CBA 5 Case Model

Financing for Infrastructure in Indonesia

Private:USD131.1Bn

(Rp.1.751,5Tn)

(36,5%)

TotalInvestmentfor

IndonesiaInfrastructure

in2015-2019:

USD359.2Bn(IDR4,796.2Tn)

SOE:USD79.8Bn

(Rp.1.066,2Tn)

(22,2%)

StateBudget:USD148.2Bn

(Rp.1.978,6Tn)

(41,3%)

InfrastructureInvestment

AllriskallocatedtoGovernment

Funding

Design

IncreaseofConstructionCost

IncreaseofOperationalCost

ConstructionRisk

LandProcurement

Traditional Procurement

AllocatedRisktoGoverment

AllocatedRisktoPrivate

Funding Design

RegulationofRates

LandProcurementRegulation Politic

IncreaseofConstruction

Cost

IncreaseofOperational

Cost

ConstructionRisk

Public Private Partnership

Umbulan Water Supply US$ 140.7 Million

VGF US$ 56.8 Million

DIPA Cipta Karya US$ 32 Million

PPP US$ 85.5 Million

DAK

Local State Budget

GCA: Investors:ProjectStatus:

Manado – Bitung Toll Road

USD 396 Milion

Serang - Panimbang Toll Road

USD 391.6 Milion

Umbulan Water Supply

USD 140.7 Milion

Palapa Ring Central Package USD 71.5 Milion

Palapa Ring East Package

USD 386.5 Milion

Balikpappan - Samarinda Toll Road

USD 767 Milion

Palapa Ring West Package USD 87.6 Milion

Krian – Legundi – Bunder - Manyar Toll Road

USD 940 Milion

Pandaan – Malang Toll Road

USD 461 Milion

Jakarta Cikampek Elevated II Toll Road

USD 1,249 Milion

Batang - Semarang Toll Road

USD 850 Milion

Serpong – Balaraja Toll Road

USD 464 Milion

Central Java Power Plant

USD 4,200 Milion

Cisumdawu Toll Road

USD 617.9 Milion Ministry/Agency

14projects

Sector GCA

LocalGovernment

10projects

Sector GCA

Success Story

MONITORING AND EVALUATION IN PPP PROJECT

No Project Q22018 Q32018 Q42018 Q12019 Q22019 Status4 5 6 7 8 9 10 11 12 1 2 3 4 5 6

1 LabuanBajoAirport PS OBC FBC PQ RFP BA CS FC

PS OBC

2Makasar-ParepareRailway

OBC FBC PQ RFP BA CS FC C OBC FBC PQ

5 LRTMedan FBC PQ RFP BA CS FC C

FBC

6SemarangBaratWaterSupply

PQ RFP BA CS FC C

PQPPPProject

inLocalGovernm

ent

PPPProject

inM

inistry/Ag

ency

Green

Green

Green

Yellow

Existing

PlanningOBC=OutlineBusinessCase

FBC=FinalBusinessCase

PQ=Praqualification

RFP=RequestforProposal

BA=BidAward

CS=ContractSigning

FC=FinancialClose

C=Construction

TimelinePS=PreliminaryStudy

PPPStagesGreen :onthetrack

Yellow :needsattention

Red :needsextraattentionStatus