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Provision of infrastructure is needed to accelerate economic growth, improve people's welfare, and realize the availability of better public services. The involvement of the private sector as an innovation in infrastructure development will create better public services. Related to this, the Government of Indonesia introduced the Public Private Partnership (PPP) scheme in providing infrastructure to provide space for the government to cooperate with the private sector based on the principle of proportional risk allocation. The implementation of this scheme has been regulated in Presidential Regulation No. 38/2015.
To support the implementation of PPP in Indonesia, the Ministry of Finance has committed to provide various facilities and government support, namely:
The Ministry of Finance also introduced a PPP project investment return scheme, which is a Payment Based Services Availability scheme or commonly known as Availability Payment or AP. Some of the advantages of this AP scheme include the absence of demand risk for the Business Entity and certainty of return on investment for the Business Entity.
To support the implementation of the PPP and the birth of new projects that focus on public services, the Ministry of Finance also established the Directorate of Government Support and Infrastructure Financing Management (DGSIFM) under the auspices of the Directorate General of Budget Financing and Risk Management. The DGSIFM plays a role in managing the provision of facilities and government support, as well as facilitating the GCA in preparing and conducting PPP project transactions. This support is a tangible form of the Indonesian Government's efforts to support and strengthen infrastructure development by bridging the advantages of the private sector and the government for a better community life.
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