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Public–Private Partnership Monitor: Indonesia Public–Private Partnership Monitor Indonesia This publication provides a snapshot of the overall public–private partnership (PPP) landscape in Indonesia. It includes more than qualitative and quantitative indicators to profile the national PPP environment, the sector-specific PPP landscape (for eight identified infrastructure sectors), and the PPP landscape for local government projects. This downloadable guide also captures the critical macroeconomic and infrastructure sector indicators (including the Ease of Doing Business scores) from globally accepted sources. Through Presidential Regulation 38/2015, the cornerstone of the country’s robust PPP enabling framework, Indonesia expects PPPs to continue playing a pivotal role to achieve its infrastructure investment target of billion for and mobilize of this value from the private sector. About the Asian Development Bank ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its eorts to eradicate extreme poverty. Established in , it is owned by members — from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. PUBLIC–PRIVATEPUBLICPRIVATE PARTNERSHIP MONITORMONITOR INDONESIA DECEMBER 2020 ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines ASIAN DEVELOPMENT BANK www.adb.org Public–Private Partnership Monitor Indonesia This publication provides a snapshot of the overall public–private partnership (PPP) landscape in Indonesia. It includes more than qualitative and quantitative indicators to profile the national PPP environment, the sector-specific PPP landscape (for eight identified infrastructure sectors), and the PPP landscape for local government projects. This downloadable guide also captures the critical macroeconomic and infrastructure sector indicators (including the Ease of Doing Business scores) from globally accepted sources. Through Presidential Regulation 38/2015, the cornerstone of the country’s robust PPP enabling framework, Indonesia expects PPPs to continue playing a pivotal role to achieve its infrastructure investment target of billion for and mobilize of this value from the private sector. About the Asian Development Bank ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its eorts to eradicate extreme poverty. Established in , it is owned by members — from the region. Its main instruments for helping its developing member countries are policy dialogue, loans, equity investments, guarantees, grants, and technical assistance. PUBLIC–PRIVATEPUBLICPRIVATE PARTNERSHIP MONITORMONITOR INDONESIA DECEMBER 2020 ASIAN DEVELOPMENT BANK 6 ADB Avenue, Mandaluyong City 1550 Metro Manila, Philippines ASIAN DEVELOPMENT BANK www.adb.org Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) © 2020 Asian Development Bank 6 ADB Avenue, Mandaluyong City, 1550 Metro Manila, Philippines Tel +63 2 8632 4444; Fax +63 2 8636 2444 www.adb.org Some rights reserved. Published in 2020. Printed in the Philippines ISBN 978-92-9262-109-4 (print); 978-92-9262-110-0 (electronic); 978-92-9262-111-7 (ebook) Publication Stock No. SGP210069-2 DOI: http://dx.doi.org/10.22617/SGP210069-2 The views expressed in this publication are those of the authors and do not necessarily reflect the views and policies of the Asian Development Bank (ADB) or its Board of Governors or the governments they represent. ADB does not guarantee the accuracy of the data included in this publication and accepts no responsibility for any consequence of their use. The mention of specific companies or products of manufacturers does not imply that they are endorsed or recommended by ADB in preference to others of a similar nature that are not mentioned. By making any designation of or reference to a particular territory or geographic area, or by using the term “country” in this document, ADB does not intend to make any judgments as to the legal or other status of any territory or area. This work is available under the Creative Commons Attribution 3.0 IGO license (CC BY 3.0 IGO) https://creativecommons.org/licenses/by/3.0/igo/. By using the content of this publication, you agree to be bound by the terms of this license. For attribution, translations, adaptations, and permissions, please read the provisions and terms of use at https://www.adb.org/terms-use#openaccess. This CC license does not apply to non-ADB copyright materials in this publication. If the material is attributed to another source, please contact the copyright owner or publisher of that source for permission to reproduce it. ADB cannot be held liable for any claims that arise as a result of your use of the material. Please contact [email protected] if you have questions or comments with respect to content, or if you wish to obtain copyright permission for your intended use that does not fall within these terms, or for permission to use the ADB logo. Corrigenda to ADB publications may be found at http://www.adb.org/publications/corrigenda. Notes: In this publication, “$” refers to United States dollars. ADB recognizes “China” as the People’s Republic of China, “Korea” as the Republic of Korea, and “Vietnam” as Viet Nam. On the cover: Left side: Steam from deep within the Earth is used to generate electricity at the Lahendong geothermal power plant in Manado, Indonesia (photo by Ariel Javellana/ADB). Center photo: Renewable Energy Development Project in Indonesia: The Lahendong Geothermal Power Plant can produce 40 megawatts of electricity (photo by Ariel Javellana/ADB). Right side from top to bottom: The Sumba Iconic Island Initiative aims to provide 100% renewable energy to the inhabitants of Sumba island within 10 years. Scaling Up Renewable Energy Access in Eastern Indonesia (Sumba Iconic Island Initiative) (photo by Sean Crowley/ADB); View from a sky bar on the 56th floor at BCA Tower overlooking downtown Jakarta (photo by Gerhard Joren/ADB). Cover design by Claudette Rodrigo. Contents Tables and Figures ......................................................................................... v Foreword .................................................................................................. ix Acknowledgments ........................................................................................ xi Definition of Terms ........................................................................................ xii Abbreviations .............................................................................................. xviii Guide to Understanding the Public–Private Partnership Monitor ......................................... xxi Overview ............................................................................................... xxi National Public–Private Partnership Landscape Indicators. xxii Sector-Specific Public–Private Partnership Landscape Indicators ........................................ xxiii Local Government Public–Private Partnership Landscape ............................................... xxiv Critical Macroeconomic and Infrastructure Sector Indicators ............................................ xxv Time Periods ........................................................................................... xxv I. Overview .............................................................................................. 1 II. National Public–Private Partnership Landscape ....................................................... 7 III. The Public–Private Partnership Landscape by Sector ................................................. 50 Roads .................................................................................................. 50 Railways ................................................................................................ 59 Ports ................................................................................................... 67 Airports ................................................................................................ 75 Energy. 82 Water and Wastewater ................................................................................. 96 Information and Communication Technology .......................................................... 110 Social Infrastructure .................................................................................... 121 IV. Local Government Landscape for Public–Private Partnerships ........................................ 132 iv Contents Appendixes ................................................................................................ 142 1 Methodology ...................................................................................... 142 2 Critical Macroeconomic and Infrastructure Sector Indicators for Indonesia .......................... 172 3 World Bank’s Ease of Doing Business Parameters for Indonesia ...................................... 175 4 Assessment of the Public Financial Management System in Indonesia ............................... 178 References ................................................................................................. 179 Tables and Figures Tables 1 Major Sponsors Active in the Infrastructure Sector .................................................... 3 2 Major Improvements in the Regulatory Framework for Public–Private Partnerships ..................... 10 3 Regulations on Public–Private Partnerships ...........................................................
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