Indonesia releases 2012 book of PPP projects
In May 2011, the Indonesian government launched a 15-year economic development master plan, MP3EI, on the establishment of six economic corridors in Indonesia. A few days ago, the government released the new 2012 Public Private Partnerships book with all the projects within the MP3EI.
According to the book, the traditional approach of funding infrastructure from the state budget is not sustainable because of limited public finances. And the alternative is Private Provision of Infrastructure (PPI). A significant number of infrastructure projects in the MP3EI is expected to be financed through an appropriate Public-Private Partnership (PPP) scheme.
The book comes months after a new law on land acquisition (Law 2/2012) was designedto accelerate the land acquisition process for public infrastructure projects.
The current PPP Book is an update of the 2011 version, incorporating recent developments. To date, 12 projects have been tendered out. In this 2012 version, there are 3 projects ready for offer (basic conditions underlying its business case, such as land availability and government support are largely met or soon to be met), 26 projects under the category "priority" and 29 projects under "potential". There are 9 new projects thatare not in the 2011 PPP Book, of which 1 is classified as "priority" and 8 as "potential".
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