Download INDONESIAN PPP THE REPUBLIC OF INDONESIA MINISTRY OF FINANCE

THE REPUBLIC OF INDONESIA
MINISTRY OF FINANCE
INDONESIAN PPP
Country Report
Subregional Expert Group Meeting (EGM) for South-East Asian Countries
24-25 November, 2015
The Economy on Stable and Promising Growth Path
Competitive GDP Growth Rate…
Consistent GDP Growth Rate…
(%)
(%)
8.00
6.00
2012 GDP Growth:
6.0%
8.00
2013 GDP Growth:
5.6%
2014 GDP Growth:
5.0%
1H15:
4.7%
6.00
4.00
4.00
2.00
2.00
0.00
0.00
2012
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2012
2013
2014
Indonesia
2015
2013
Malaysia
Philipines
2014
Singapore
2015*
Thailand
Vietnam
Source: ADB,2015
Source: Bank Indonesia
Stable Debt to GDP Ratio…
Rising Direct Investments…
Q2-2015
Total Direct Investment grew 16.3% (YoY)
FDI grew 18.2% (YoY)
DDI grew 16.1% (YoY)
USD Bn
135.1
42.9
30%
24.5%
23.1%
23.0%
2010
2011
2012
24.9%
24.7%
2013
2014
11.26%
92.2
20%
10%
Source: MoF Indonesia
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2011
Source: BKPM
2012
PMA
FDI
2013
PMDN
DDI
2014
Total
Total
2015
Estimated Funding Source for Infrastructure Development
(2015-2019)
Gov’t and Local
Budget
Strategic
Infrastructure
Investment
+ USD 165 billion
+ USD 89 billion
Gov’t and Local
Budget
(41.25%)
SOE (22.23%)
Alternative
Financing
Scheme
USD 400 billion
Financing Gap
+ USD 146 billion
Private (36.52%)
• Based on medium term economic development plan 2015-2019, the infrastructure investment needs
is estimated around USD 400 billion;
• The development focuses on basic infrastructure sectors, such as Connectivity, Power & Electricity,
communication, water & housing;
• To fill the gap of infrastructure needs, GOI is welcoming private involvement through PPP scheme as
well as SOE participation.
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Structure of Support in PPP Financing Scheme
Government
Support
Project Development
Fund
Payment
Scheme
User Payment
Viability Gap Fund
Availability Payment
Government Guarantee
periodic payment to concessionaire
by public authority for providing
agreed infrastructure services
Infrastructure Financing
Fund
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PPP Institutional Arrangement
• Key players in Indonesian PPP:
Institution
Roles
KPPIP (Infrastructure Acceleration
Committee)
- Prioritizing projects
- Deciding funding project scheme
Ministry of Planning
- Planning in infrastructure development
Ministry of Finance cq PPP Unit
- Providing government supports such as Project
Development Facility (PDF), Viability Gap Fund,
Sovereign Guarantee
- Assisting the implementation of Availability Payment
Scheme
- Assisting development of business package and
transaction process until financial close
Indonesia Infrastructure Guarantee - Fiscal tool to provide sovereign guarantee
Fund (IIGF) - SOE
(assessment and administration process for the
guarantee are carried out through IIGF)
PT Sarana Multi Infrastruktur - SOE
- Facilitator in Project Development Facility
- Providing competitive infrastructure financing
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PPP Challenges
 Land acquisition issue often times causes project delay;
 In some cases, PPP Co is unable to achieve financial close;
 The absence of the time indication to process the PPP projects
from initiation phase until achieving the financial close;
 Domestic banks do not have adequate capacity to compete in
PPP infrastructure financing due to relatively conservative
banking regulation.
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Progress on PPP Projects
TOTAL PROJECT
(in USD million)
STATUS
GOVERNMENT
SUPPORT/ FINANCING
SCHEME
Central Java Power Plant
3,030
PPP Agreement has been signed
Processing Financial Close
Government Guarantee
Mine Mouth 9-10, South
Sumatera
4,090
Tendering Process
Government Guarantee
Umbulan Water Supply
151
Tendering Process (RfP—Bid
Submission)
Guarantee and Viability Gap
Fund
Lampung Water Supply
75
Tendering Process (RfP—Bid
Submission)
Guarantee and Viability Gap
Fund
West Semarang Water Supply
57
Enter tendering process
Viability Gap Fund
1,820
Wait for GCA clarification of PDF
continuity
Project Development Facility
230.6
Prepare for RfP Process
Availability Payment
PROJECT
POWER SECTOR
WATER SECTOR
TRANSPORTATION
Airport Railway-Soekarno Hatta
International Airport
TELECOMUNICATION
Palapa Ring-Fiber Optic Project
3-5 PROJECTS TARGETED TO BE DELIVERED AND GET FINANCIAL CLOSING WITHIN 3 YEARS
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THE INVESTMENT OPPORTUNITIES
PPP Project Pipeline
Investment Cost
(in USD million)
ENERGY
1. Bontang Oil Refinery
2. IPP Project 35,000 MW
5,680-10,600
+105,000
TOLL ROAD
3. Toll Road Balikpapan – Samarinda
864
4. Toll Road Manado - Bitung
295
5. Toll Road Serang – Panimbang
909
WATER AND SANITATION
6. Water Supply System Semarang Barat
76
RAILWAY
7. Express Airport Railway SHIA
1,820
HEALTH FACILITY
8. Pirngadi Hospital
18
SPORT CENTER
9. Bali Sport Stadium and Aquatic Center
International Stadium = 82
Aquatic Center = 15
Beside the above projects, there are certain sectors such as hydropower and
water supply which are PPP potential spreading across provinces in Indonesia.
• GoI has addressed the
needs of the private
sector in PPP Projects
by providing required
government supports
such as sovereign
guarantee, viability gap
fund, offering the
attractive and robust
PPP business package,
simplifying and
shortening time and
processes for
investment licensing.
• Moreover, the
opportunities to invest
in infrastructure widely
open through a pipeline
of a number of potential
PPP projects.
• The transfer in
technology, knowledge
and fund from
international resources
are expected to support
the infrastructure
development in
Indonesia.
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Thank You
DIRECTORAT GENERAL OF FINANCING AND RISK MANAGEMENT
MINISTRY OF FINANCE , GOVERNMENT OF INDONESIA
Frans Seda building 1st floor
Dr. Wahidin 1, Jakarta 10710
Phone (+6221) 3510722; Fax (+6221) 3447386
www.djppr.kemenkeu.go.id
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