Infrastructure development is needed to accelerate economic growth, improve social welfare and provide better public services. The involvement of the private sector in infrastructure development will create better public services and innovation. In this regard, the Government of Indonesia is introducing Public-Private Partnership (PPP) in infrastructure provision to allow the government to cooperate with the private sector based on the principle of proportional allocation of risks. The implementation of this scheme is regulated in Presidential Regulation No. 38 of 2015.
To support the implementation of PPP in Indonesia, the Ministry of Finance administer an innovative infrastructure financing through the provision of various facilities and fiscal support for projects with PPP scheme. In order to support the implementation of PPP scheme and rise new projects that focus on public services, the Ministry of Finance established the Directorate of Government Support and Infrastructure Financing Management whitin the Directorate General of Budget Financing and Risk Management.
This support is the manifestation of the Government efforts to support and fortify the development of infrastructure by bridging the private sector excellence and public sector eminence for the improvement of life quality of people of Indonesia.