Regulatory structure for PPPs has continued to develop since 2011,but it has to be tested and weakness remains.

Indonesia’s electricity, transport and water sectors are covered by separate regulations but since 2005 there have been continuously efforts to develop a coordinated approach to PPPs.

Since 2009 every year, the National Development Planning Agency (BAPPENAS) has published a PPP Book including a list of potential projects, and PPPs were indicated as a priority in the Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) in 2011.Presidential Regulations since 2010 have fortified the framework. However, project implementation has been slow. There has been no PPP reaching financial close since 2011,as a result of weak leadership and planning.

In terms of leadership, the task of inter ministerial policy coordination was formerly assigned to KKPPI. But KKPPI failed to perform as intended and in July 2014 the government reorganized it into the KPPIP. The PPP Central Unit (P3CU) under BAPPENAS works on project identification and selection criteria, while the Ministry of Finance created a PPP unit in 2014.So far, little has changed. But there is significant government will to test out the new regulations.

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