To meet a shortfall in financing for its infrastructure needs, Indonesia is looking towards multilateral agencies, institutional investors and private funds, among others. Within this strategy, Public Private Partnerships (PPPs) are an important way to harness finance to develop essential infrastructure in exchange for revenue from projects or services. PPP schemes are expected to meet about 36.5% of the funding gap.
To encourage investment, the Indonesian government has been liberalising regulation and policy on PPPs, including on the critical issue of land acquisition. PPPs also are bolstered by state financing institutions, such as the Indonesia Infrastructure Guarantee Fund, which has the support of the World Bank. The message is: PPP schemes are structurally and financially complex, but they offer robust investment opportunities for the private sector, and in Indonesia, the government will be proactive in helping companies to realise returns on investment.
Beyond Boundaries: Indonesia as a Global PPP Investment Destination, an Indonesia PPP Day event in collaboration with the Financial Times, will examine the opportunities and challenges in Indonesia’s PPP ecosystem. To determine how investors, financiers, multilateral agencies, funds, contractors and infrastructure experts can work together to realise the full potential of PPPs, this exclusive event will explore three key issues:
- Creating bankable projects
- Building a competitively neutral and high-quality procurement process
- Addressing the political and currency-mismatch risks that continue to affect foreign private investment in Indonesia’s infrastructure
Presented by the Financial Times, the event is co-hosted by Indonesia's Ministry of Finance, the Government of Canada and the World Bank, with the support of Indonesia Infrastructure Finance, Penjaminan Infrastruktur Indonesia and Sarana Multi Infrastruktur.