Indonesian govt planning ‘simpler, faster’ PPP regime

The Indonesian government is looking to make its PPP system more attractive to investors in order to entice them to support its plans to build its new capital city, Nusantara.

The Ministry of National Development Planning/National Development Planning Agency (Bappenas) has recognised that it cannot deliver all the infrastructure for the new city without private investment.

According to Indonesian news agency Antara, Bappenas Deputy Minister for Development Funding, Scenaider Siahaan, told a conference this week that it will prioritise PPPs to deliver Nusantara’s infrastructure.

“The government will prepare a simpler and faster PPP scheme,” he was quoted as telling delegates at the event, which was focused on highlighting the potential for investment in Nusantara.

Governments are increasingly turning to PPPs to deliver larger and more complex programmes of investment, such as delivering new cities like Nusantara. However, there remain questions over whether the model can adapt and flex to meet such needs, as discussed in our recent article. Click here to read more.