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...

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Main Authors: Wibisono, Andri, Delmon, Jeff, Hahm, Hongjoo
Format: Report
Language:English
en_US
Published: World Bank, Jakarta 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/603611468043468438/Unlocking-the-public-private-partnerships-deadlock-in-Indonesia
http://hdl.handle.net/10986/27399
id okr-10986-27399
recordtype oai_dc
spelling okr-10986-273992021-04-23T14:04:41Z Unlocking the Public-Private Partnerships Deadlock in Indonesia Wibisono, Andri Delmon, Jeff Hahm, Hongjoo AIR AIR TRANSPORT AIRPORT AIRPORTS BANK OFFICE CAPACITY BUILDING CAPITAL COSTS COMMERCIAL BANKS CONCESSION AGREEMENT CORPORATION COST-BENEFIT DEVELOPMENT BANK DONOR FUNDS DRIVERS ECONOMIC DEVELOPMENT ECONOMIC POLICY ELECTRICITY EXPENDITURE EXPENDITURES FACILITATION FINANCIAL ASSISTANCE FINANCIAL INCENTIVES FINANCIAL INSTITUTION FINANCIAL SUPPORT FINANCIAL VIABILITY FINANCING FACILITIES FINANCING FACILITY FIRMS FISCAL SUPPORT GOVERNMENT GUARANTEES HIDDEN SUBSIDIES INCOME INFRASTRUCTURE DEVELOPMENT INFRASTRUCTURE FINANCING INFRASTRUCTURE PROJECTS INSTITUTIONAL FRAMEWORK INSTITUTIONAL STRUCTURE INTERNATIONAL FINANCE JOINT VENTURES KEY CHALLENGES LAND SPECULATION LAND TRANSPORT LAW FIRMS LAWYERS LENDERS LOCAL CURRENCY FINANCING LOCAL GOVERNMENT LOCAL GOVERNMENTS NATIONAL BUDGET OPEN MARKET PATRONAGE PEOPLES PRIVATE COMPANIES PRIVATE INVESTMENT PRIVATE INVESTORS PRIVATE PARTNERSHIP PRIVATE SECTOR PROVINCIAL GOVERNMENTS PUBLIC PUBLIC FINANCE PUBLIC FUNDS PUBLIC RESOURCES PUBLIC SECTOR PUBLIC WORKS PUBLIC-PRIVATE PARTNERSHIP PUBLIC-PRIVATE PARTNERSHIPS RAILWAY RAILWAYS REGULATORY FRAMEWORK REVOLVING FUND RISK MANAGEMENT ROADS SANITATION SOCIAL DEVELOPMENT START-UP START-UP CAPITAL STATE OWNED ENTERPRISES TECHNICAL SUPPORT TELECOMMUNICATIONS TOLL TOLL ROAD TOLL ROADS TRANSPARENCY TRANSPORT WATER SUPPLY 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. 2017-06-27T20:31:23Z 2017-06-27T20:31:23Z 2011-03 Report http://documents.worldbank.org/curated/en/603611468043468438/Unlocking-the-public-private-partnerships-deadlock-in-Indonesia http://hdl.handle.net/10986/27399 English en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Jakarta Economic & Sector Work :: Country Infrastructure Framework Economic & Sector Work East Asia and Pacific Indonesia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic AIR
AIR TRANSPORT
AIRPORT
AIRPORTS
BANK OFFICE
CAPACITY BUILDING
CAPITAL COSTS
COMMERCIAL BANKS
CONCESSION AGREEMENT
CORPORATION
COST-BENEFIT
DEVELOPMENT BANK
DONOR FUNDS
DRIVERS
ECONOMIC DEVELOPMENT
ECONOMIC POLICY
ELECTRICITY
EXPENDITURE
EXPENDITURES
FACILITATION
FINANCIAL ASSISTANCE
FINANCIAL INCENTIVES
FINANCIAL INSTITUTION
FINANCIAL SUPPORT
FINANCIAL VIABILITY
FINANCING FACILITIES
FINANCING FACILITY
FIRMS
FISCAL SUPPORT
GOVERNMENT GUARANTEES
HIDDEN SUBSIDIES
INCOME
INFRASTRUCTURE DEVELOPMENT
INFRASTRUCTURE FINANCING
INFRASTRUCTURE PROJECTS
INSTITUTIONAL FRAMEWORK
INSTITUTIONAL STRUCTURE
INTERNATIONAL FINANCE
JOINT VENTURES
KEY CHALLENGES
LAND SPECULATION
LAND TRANSPORT
LAW FIRMS
LAWYERS
LENDERS
LOCAL CURRENCY FINANCING
LOCAL GOVERNMENT
LOCAL GOVERNMENTS
NATIONAL BUDGET
OPEN MARKET
PATRONAGE
PEOPLES
PRIVATE COMPANIES
PRIVATE INVESTMENT
PRIVATE INVESTORS
PRIVATE PARTNERSHIP
PRIVATE SECTOR
PROVINCIAL GOVERNMENTS
PUBLIC
PUBLIC FINANCE
PUBLIC FUNDS
PUBLIC RESOURCES
PUBLIC SECTOR
PUBLIC WORKS
PUBLIC-PRIVATE PARTNERSHIP
PUBLIC-PRIVATE PARTNERSHIPS
RAILWAY
RAILWAYS
REGULATORY FRAMEWORK
REVOLVING FUND
RISK MANAGEMENT
ROADS
SANITATION
SOCIAL DEVELOPMENT
START-UP
START-UP CAPITAL
STATE OWNED ENTERPRISES
TECHNICAL SUPPORT
TELECOMMUNICATIONS
TOLL
TOLL ROAD
TOLL ROADS
TRANSPARENCY
TRANSPORT
WATER SUPPLY
spellingShingle AIR
AIR TRANSPORT
AIRPORT
AIRPORTS
BANK OFFICE
CAPACITY BUILDING
CAPITAL COSTS
COMMERCIAL BANKS
CONCESSION AGREEMENT
CORPORATION
COST-BENEFIT
DEVELOPMENT BANK
DONOR FUNDS
DRIVERS
ECONOMIC DEVELOPMENT
ECONOMIC POLICY
ELECTRICITY
EXPENDITURE
EXPENDITURES
FACILITATION
FINANCIAL ASSISTANCE
FINANCIAL INCENTIVES
FINANCIAL INSTITUTION
FINANCIAL SUPPORT
FINANCIAL VIABILITY
FINANCING FACILITIES
FINANCING FACILITY
FIRMS
FISCAL SUPPORT
GOVERNMENT GUARANTEES
HIDDEN SUBSIDIES
INCOME
INFRASTRUCTURE DEVELOPMENT
INFRASTRUCTURE FINANCING
INFRASTRUCTURE PROJECTS
INSTITUTIONAL FRAMEWORK
INSTITUTIONAL STRUCTURE
INTERNATIONAL FINANCE
JOINT VENTURES
KEY CHALLENGES
LAND SPECULATION
LAND TRANSPORT
LAW FIRMS
LAWYERS
LENDERS
LOCAL CURRENCY FINANCING
LOCAL GOVERNMENT
LOCAL GOVERNMENTS
NATIONAL BUDGET
OPEN MARKET
PATRONAGE
PEOPLES
PRIVATE COMPANIES
PRIVATE INVESTMENT
PRIVATE INVESTORS
PRIVATE PARTNERSHIP
PRIVATE SECTOR
PROVINCIAL GOVERNMENTS
PUBLIC
PUBLIC FINANCE
PUBLIC FUNDS
PUBLIC RESOURCES
PUBLIC SECTOR
PUBLIC WORKS
PUBLIC-PRIVATE PARTNERSHIP
PUBLIC-PRIVATE PARTNERSHIPS
RAILWAY
RAILWAYS
REGULATORY FRAMEWORK
REVOLVING FUND
RISK MANAGEMENT
ROADS
SANITATION
SOCIAL DEVELOPMENT
START-UP
START-UP CAPITAL
STATE OWNED ENTERPRISES
TECHNICAL SUPPORT
TELECOMMUNICATIONS
TOLL
TOLL ROAD
TOLL ROADS
TRANSPARENCY
TRANSPORT
WATER SUPPLY
Wibisono, Andri
Delmon, Jeff
Hahm, Hongjoo
Unlocking the Public-Private Partnerships Deadlock in Indonesia
geographic_facet East Asia and Pacific
Indonesia
description 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.
format Report
author Wibisono, Andri
Delmon, Jeff
Hahm, Hongjoo
author_facet Wibisono, Andri
Delmon, Jeff
Hahm, Hongjoo
author_sort Wibisono, Andri
title Unlocking the Public-Private Partnerships Deadlock in Indonesia
title_short Unlocking the Public-Private Partnerships Deadlock in Indonesia
title_full Unlocking the Public-Private Partnerships Deadlock in Indonesia
title_fullStr Unlocking the Public-Private Partnerships Deadlock in Indonesia
title_full_unstemmed Unlocking the Public-Private Partnerships Deadlock in Indonesia
title_sort unlocking the public-private partnerships deadlock in indonesia
publisher World Bank, Jakarta
publishDate 2017
url http://documents.worldbank.org/curated/en/603611468043468438/Unlocking-the-public-private-partnerships-deadlock-in-Indonesia
http://hdl.handle.net/10986/27399
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