An Introduction to Public Private Partnership (PPP) in Infrastructure Provision

The Infrastructure financing needs in Indonesia are massive, totaling to Rp4,796 T between 2015-2019, to support its economic growth. Therefore, infrastructure development requires other sources of financing to fill the financing gap due to limited state budget. Given these limitations, private sector participation is key in the provision of infrastructure in Indonesia through the Public Private Partnership (PPP) scheme. The PPP scheme was introduced by the Government of Indonesia in 2009 as an alternative infrastructure financing solution to attract the private sector in the development of infrastructure. To requires projects that are feasible, bankable, fiscally acceptable and comply with the regulations and laws that are stipulated in Indonesia.