Unlocking the Public-Private Partnerships Deadlock in Indonesia
The challenges faced by Indonesia in creating a robust Public-Private Partnership (PPP) program are similar to those faced by many other middle-income countries. This paper provides a gap analysis for Indonesia's PPP framework based on lessons...
| Main Authors: | , , |
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| Format: | Report |
| Language: | English en_US |
| Published: |
World Bank, Jakarta
2017
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/603611468043468438/Unlocking-the-public-private-partnerships-deadlock-in-Indonesia http://hdl.handle.net/10986/27399 |
| Summary: | The challenges faced by Indonesia in
creating a robust Public-Private Partnership (PPP) program
are similar to those faced by many other middle-income
countries. This paper provides a gap analysis for
Indonesia's PPP framework based on lessons learned and
good practice from countries with successful PPP programs.
It identifies, in particular, the need for the government
to: select good projects for PPP, rather than only complex
ones that are less likely to attract private partners.
Establish a list of projects by a limited cabinet meeting
and stick to it-issuing different lists of projects and
holding showcase summits with open agendas tends to confuse
the market. Keep those projects on track for PPP-allowing
the contracting agencies to develop prospective projects
directly, or to award them without competition leads
investors to question the commitment and resolve of the
government to its own PPP process. Prepare projects well,
using the Ministry of Finance to provide access to: 1) a
team of PPP experts to help contracting agencies develop
projects; 2) project preparation funding to help pay the
high costs of preparation; and 3) viability gap funding to
make projects more affordable and bankable by defraying some
of the capital costs. |
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