Quality Infrastructure Preparation

and Transaction

Tulus Hutagalung
Committee for Acceleration of Priority Infrastructure Delivery
Tokyo, 13th August 2018
 Indonesia Current Project Development Facility Mechanism

OBC Market Pre- Contract Financial

Qualification RFP
Preparation Sounding Signing Close

Pre PDF
Priority Projects

1. Project prioritization and funding

scheme determination by KPPIP
2. If funding scheme is PPP, then OBC
will be done by KPPIP
3. KPPIP facilitate GCA proposal for PDF
PDF by MoF PPP Unit
to MoF
Provide PDF for Provide PDF for transaction
FBC completion advisory
Other Projects

1. PPP funding scheme determination is

done by GCA
2. OBC is prepared by GCA supported by Processig VGF application
consultants or donor agency
3. After initial investor interest for the
project is identified through market Processiong guarantee
sounding, GCA may propose PDF to application
MoF
Scope of Project Development Facility

• For Priority Projects, PDF will be given once KPPIP

confirmed that the project have fulfilled all the criteria
(including OBC)
Project • For non priority projects, PDF will be given once the GC
Preparation have proven project feasibility and attractiveness through
OBC and market sounding
• Type of activities funded through PDF are FBC preparation
or OBC supporting study/document preparation

• PDF will be given for the transaction phase

Transaction • Type of activities funded through PDF are assistance for PQ,
Advisory bidders meeting, lenders meeting, Reuest for Proposal, etc.

After the PDF is granted by Minister of Finance, the it will be carried forward by Directorate of
Management of Govt Support and Infrastructure Financing (PPP Unit) through assignment to
State Owned Enterprise having capabilities in infrastructure preparation and transaction
(usually PT SMI)
MoF provides Viability Gap Fund (VGF) facility to attract investor interest to invest in
infrastructure project that is not financially feasible

Presidential Reg. No. 38/2015:

This Presidential Reg. stipulates that GCA can provide VGF to the implementing
Business Entity in order to obtain the expected investment return (capital,
operational cost, and profit for a certain period). VGF can only be provided to PPP
1 Legal Basis project which has social interests and benefits.

MoF Reg. No. 143/2013:

This MoF Reg. regulates the VGF granting mechanism for partial construction of
PPP project in infrastructure provision

Approval of VGF has been given to the following projects:

2016: Umbulan Water Supply 2018: Lampung Water Supply

In the form of partial construction, approval has been given to the following
Toll Road projects:
Implementation No. Nama Jalan Tol PPJT No. Nama Jalan Tol PPJT
2 To Date
1. Ngawi – Kertosono 2011 5. Manado – Bitung 2016

2. Solo – Ngawi 2011 6. Medan - Kuala Namu - Tebing 2016

Tinggi
3. Semarang – Solo 2012 7. Cileunyi - Sumedang – Dawuan 2017
4. Balikpapan – Samarinda 2016 8. Tebing Tinggi – Parapat 2017

4
For the Land Acquisition issues, LMAN was established in 2015 and has disbursed up to
IDR 20.8 Trillion (April 2018) through bridging finance scheme for toll road projects

Implementation Progress
LMAN was established in Dec 2015 through (Up to April 2018, LMAN has disbursed up to IDR 20.8 Trillion
the issuance of MoF Reg. 219/2015
concerning State Assets Management 25000

Cumulative Disbursement
20000 20807
• In 2016, BLU LMAN was mandated to provide
land acquisition fund for all National Strategic 15000 1443015264
12644
1113011720
Projects through the issuance of MoF Reg. 10000

(IDR Billion)
7600 7600
6400
21/2017 concerning land acquisition financing 5000 3400
guideline for PSN 0 368 368
• There two scheme of Land Funding: Direct
Payment and Bridging Fund scheme

Bridging
Key Advantages Reimbursement
Batch Fund
IDR IDR %
Unutilized fund can be allocated for the
following year Batch 1 (2016) 12,4 T 12,1 T 97,7%

Batch 2 (2016) 978,9 B 666,7 B 68,1%

Non-project-specific land acquisition fund
allocation. Unused allocated fund can flexibly
be made available for the other project
Land acquisition fund for PSN projects is
managed under one agency
Batch 1 (2017) 10,52 T 8,04 T 76.42%
Bridging Fund scheme is not registered as government debt
since LMAN will be reimburse the bridging fund as soon as the
state budget spending allocation ready to be disbursed and
the reimbursement documents are completed
 THANK YOU
KPPIP
Menara Merdeka, 8th floor
Jl Budi Kemuliaan I No 2, Jakarta 10110
E-mail : sekretariat@kppip.go.id
Landline : +62 21 2957 3771