1. Indonesia
  2. National PPP landscape

National PPP landscape

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  • Overview

    National PPP, Indonesia

    Number of PPPs and Investment in PPPs

    • PPP Investment
      $ 20,286 M
    • Number of PPPs Reaching FC
      135
    • Value of PPPs Reaching FC
      $ 63,464 M

    Revenue Model and Government Support to PPPs

    • Number of PPPs with Govt. Support
      97
    • Number of User Charge PPPs
      22
    • Number of Govt. Pay PPPs
      64

    PPPs under Preparation and Procurement

    • Number of PPPs under Preparation
      20
    • Number of PPPs under Procurement
      7

    FC = financial closure, Govt. = government, M = million.

    Sources: Government of Indonesia, Ministry of National Development Planning (BAPPENAS). 2019. Public–Private Partnership: Infrastructure Projects Plan in Indonesia 2019. Jakarta. https://library.pppknowledgelab.org/documents/5826/download; World Bank. Infrastructure Finance, PPPs and Guarantees. Country Snapshots: Indonesia. https://ppi.worldbank.org/en/snapshots/country/indonesia.

    Considering the pivotal role of private participation in infrastructure development, the government has instituted a public–private partnership (PPP) scheme for developing infrastructure projects. It has also enacted a regulation dedicated to PPP implementation in Indonesia: Presidential Regulation No. 38 of 2015 on Cooperation between Government and Business Entity in Infrastructure Provision. This regulation complies with the Minister of National Development Planning/Head of National Development Planning Agency Regulation No. 4 of 2015, which is implemented by the Ministry of National Development Planning (BAPPENAS). The government has over the years been supporting the acceleration and improvement of the PPP processes.

    • National Framework for Enabling PPPs

      Types of PPPs

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      Service Contracts

      Management Contracts

      Affermage or Lease Contracts

      Design-Bid-Build (DBB)

      Design-Build (DB)

      Build-Operate-Transfer (BOT)

      Design-Build-Finance-Operate-Transfer (DBFOT)

      Build-Own-Operate (BOO)

      Concessions

      Joint Venture

      Hybrid Contracts

      Others

      1.Build-Own-Operate-Transfer (BOOT)

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      National Framework for Enabling PPPs

      Types of PPPs

      Regulations in Indonesia do not define specific types of PPP contracts. However, PPPs can be differentiated based on the payment mechanism through which the private sector partner recovers its costs receives its profits. According to the Ministry of National Development Planning/Head of National Planning Agency Regulation No. 4 of 2015, there are three payment mechanisms through which the private sector partner can recover its costs and earn a reasonable return on its investments. These include the

      • user fee, in which the main income of the special purpose vehicle (SPV) is based on user payments for the services and facilities, offered in form of tariffs;
      • availability payment, in which the government makes an annual payment of an agreed amount as the SPV’s main income throughout the operation period (it essentially covers all costs—construction, operation and maintenance (O&M), financing, and statutory—and provides the returns for investors; this is a new model, introduced in the latest presidential regulation); and
      • other forms, as long as they do not conflict with the legislation.
      fig-ppptype

      Based on the above, it could be construed that Indonesia allows for all standard forms of the PPPs, such as build–operate–transfer (BOT), build–own–operate–transfer (BOOT), build–operate–own (BOO), design–build–finance–operate–transfer (DBFOT), management contracts, annuity-based agreements, and O&M agreements.

    • National Framework for Enabling PPPs

      Eligible Sectors for PPPs

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      Transportation Infrastructure

      Road Infrastructure

      Main roads, Collector roads and local roads, Toll roads, Toll bridges

      Rail and Mass Transit Infrastructure

      Railway facilities, urban mass transportation

      Waterways Infrastructure

      Infrastructure for crossing at sea river or lake

      Seaport Infrastructure

      Port facilities and passengers and cargo terminal

      Airport Infrastructure

      Airports facilities

      Logistics Infrastructure

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      Water, Wastewater, and Solid Waste Management Infrastructure

      Water Resources and Irrigation Infrastructure

      Bulk water carrier pipelines, irrigation networks and water storage infrastructure including its supporting structures, among others reservoir, dam, and weir

      Water Supply Infrastructure

      Raw water unit, Production unit, Distribution unit

      Wastewater Infrastructure

      Centralized wastewater management systems including service unit, collection unit, processing unit, final disposal unit, water discharge pipeline, and sanitation Local water waste management system including local processing unit, transport unit, sludge treatment unit, final disposal unit, water discharge pipeline, and sanitation

      Solid Waste Management Infrastructure

      Transportation, Processing, Waste final processing

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      ICT Infrastructure

      Telecommunication Infrastructure

      Telecommunication network, passive infrastructure such as transmission media cable ducts

      IT and Informatics Infrastructure

      E-government infrastructure

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      Energy and Electricity Infrastructure

      Power Generation

      Power generation facilities

      Power Transmission and Sub-Transmission

      Power transmission, and main sub-station facilities

      Power Distribution

      Power distribution facilities

      Energy Conservation Infrastructure

      Main road lighting, energy efficiency

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      Other Infrastructure

      Zone Infrastructure

      Science development region, technology innovation including science, Techno park development, Industrial zone

      Oil and gas infrastructure, including bio-energy

      Processing, storage, transportation, distribution

      Tourism Infrastructure

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      National Framework for Enabling PPPs

      Eligible Sectors for PPPs

      According to Article 5 of Presidential Regulation 38 of 2015, there are 19 economic and social infrastructure sectors across which projects can be procured through the PPP route. A PPP project may also be proposed for a combination of two or more infrastructure sectors.

      Sectors Subsectors Asset/Facility Type
      Transportation
      infrastructure      		 Road infrastructure Main roads, collector roads and local roads, toll roads, toll bridges
      Rail and mass transit infrastructure Railway facilities, urban mass transportation
      Waterways infrastructure Infrastructure for crossing at sea, river, or lake
      Seaport infrastructure Port facilities and passengers and cargo terminal
      Airport infrastructure Airport facilities
      Logistics infrastructure UA
      Water, wastewater, and solid waste management
      infrastructure      		 Water resources and irrigation
      infrastructure      		 Bulk water carrier pipelines, irrigation networks and water storage
      infrastructure (including its supporting structures, among others)
      reservoir, dam, and weir
      Water supply infrastructure Raw water unit, production unit, distribution unit
      Wastewater infrastructure

      Centralized wastewater management systems including service
      unit, collection unit, processing unit, final disposal unit, water
      discharge pipeline, and sanitation

      Local wastewater management system including local processing
      unit, transport unit, sludge treatment unit, final disposal unit,
      water discharge pipeline, and sanitation
      Solid waste management
      infrastructure      		 Transportation, processing, final waste processing
      ICT infrastructure Telecommunication
      infrastructure      		 Telecommunication network, passive infrastructure such as
      transmission media cable ducts
      Information technology and
      informatics infrastructure      		 E-government infrastructure
      Energy and
      electricity
      infrastructure      		 Power generation Power generation facilities
      Power transmission and
      sub-transmission      		 Power transmission and main substation facilities
      Power distribution Power distribution facilities
      Energy conservation infrastructure Main road lighting, energy efficiency
      Social infrastructure Education infrastructure Learning facility, laboratory, training center, research center/study center, research and development infrastructures, business incubator, learning gallery, student practice room, library, learning and training supporting facility
      Health infrastructure Hospital (i.e., hospital building, hospital infrastructure, and
      medical equipment; basic health service facility, such as building,
      infrastructure, and medical equipment for health center and/or
      clinic; health laboratory, such as health laboratory building, health
      laboratory, infrastructure, and laboratory equipment)
      Public housing Social housing, simple flat lease
      Government buildings Penitentiary institution, community hall, detention house, confiscated goods storage and state confiscated goods, temporary child placement institution, child special development institution, penitentiary hospital, public markets, sport stadium/building, art and culture building
      Other infrastructure Zone infrastructure Science development region, technology innovation including science, techno park development, industrial zone
      zones, and related projects
      Oil and gas infrastructure,
      including bioenergy      		 Processing, storage, transportation, distribution
      Tourism infrastructure UA

      ICT = information and communication technology, UA = unavailable.

      Source: Government of Indonesia, Committee for Acceleration of Priority Infrastructure Delivery (KPPIP); government regulations on PPPs.

      ICT = information communication technology.

    • National Framework for Enabling PPPs

      PPP Institutional Framework

      Parameters

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      Does the country have a national PPP unit?
      What are the functions of the national PPP unit?

      • Supporting the design and operationalization of the national PPP-enabling framework?

      • Helping develop a national PPP pipeline?

      • Supporting the arrangement of funding for project preparation (budgetary allocations, technical assistance funding from multilateral development agencies, operating a dedicated project preparation/project development fund)?

      • Guidance for project preparation to and coordination with the government agencies responsible for sponsoring the projects?

      • Making recommendations to the PPP Committee and/or other approving authorities to provide approvals associated with various stages of PPP process?
      • Yes
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      National Framework for Enabling PPPs

      PPP Institutional Framework

      In Indonesia, there are multiple entities facilitating the work of the PPP unit. The key ones include:

      • Directorate of Development for Public Private Partnership, Ministry of National Development Planning (BAPPENAS). The directorate’s main functions include formulating national development plans, drafting budgets, evaluating plan implementation, functioning as a government think tank, and coordinating and administering development plans and other activities in various areas.1 In addition, BAPPENAS, through the Directorate of PPP and Financial Engineering, ensures that PPP projects are in line with PPP-planning regulations and national development plan and policies.
      • Directorate of Government Support and Infrastructure Financing Management, Ministry of Finance. This directorate evaluates the financial and economic aspects of proposed PPP projects, and makes recommendations regarding government support to the relevant government contracting agency (GCA).

      The World Bank also mentioned the Indonesia Infrastructure Guarantee Fund (IIGF), PT Sarana Multi Infrastruktur (PT SMI), and National Public Procurement Agency (LKPP) as facilitators.2

      Principal Public Agencies, Institutions, and Firms that Support PPPs in Indonesia

      Category Key Agencies Function
      Government agencies Directorate of PPP and Design, BAPPENAS Assists in the completion of initial preparation documents.
      KPPIP The main agency that coordinates PPPs and prevents bottlenecks in PSNs and priority projects
      MOF Provides funding and assistance in completing the final preparation documents
      GCA Prepares and/or evaluates PPP project, selects and signs the Cooperation Agreement, and issues PPP project license to the concerned private company
      BKPM Verifies the credibility of the investor and assists the GCA in conducting market sounding
      PPP Joint Office Coordinates, facilitates, and provides capacity building for government agencies, the GCA, and private entities to accelerate PPP project implementation
      LKPP Ensures transaction probity and fair tendering for PPP projects
      Coordinating Ministry for Economic Affairs Supports the process of eliminating bottlenecks in PPP projects
      MOHA Evaluates project value and regional fiscal capacity for PPP projects that use availability payments
      PINA Unit, BAPPENAS Assists private entities in finding alternative nongovernment financing mechanisms to accelerate the financial close
      Supporting institutions (state-owned enterprises) PT SMI Provides infrastructure financing and advisory services for PPP projects
      IIF Provides capital for infrastructure and advisory services for PPP projects
      IIGF Provides contingency support and guarantees against government-related risks to private entities
      LMAN Funds land acquisition for PPP projects listed as national strategic projects
      Private firms SPV An Indonesian legal entity owned by the project sponsors, which enters into a Cooperation Agreement with a GCA, or receives a direct appointment from the government, to provide a particular service or build infrastructure on a PPP basis

      BAPPENAS = Ministry of National Development Planning, BKPM = Indonesia Investment Coordinating Board, GCA = government contracting agency, IIF = Indonesia Infrastructure Finance, IIGF = Indonesia Infrastructure Guarantee Fund, KPPIP = Committee for Acceleration of Priority Infrastructure Delivery, LKPP = National Public Procurement Agency, LMAN = State Asset Management Agency, MOF = Ministry of Finance, MOHA = Ministry of Home Affairs, PINA = Non-Government Budget Equity Financing, PPP = public–private partnership, PT-SMI = Indonesia State-Owned Infrastructure Financing Company, SPV = special purpose vehicle.

      Source: Asia-Pacific Economic Cooperation (APEC), APEC Policy Support Unit. 2019. Peer Review and Capacity Building on APEC Infrastructure Development and Investment: Indonesia. Singapore. https://www.apec.org/Publications/2019/11/Peer-Review-andCapacity-Building-on-APEC-Infrastructure-Development-and-Investment-Indonesia.

      Sources: Government of Indonesia, Committee for Acceleration of Priority Infrastructure Delivery (KPPIP); Government of Indonesia, Ministry of National Development Planning (BAPPENAS). 2019. Public–Private Partnership: Infrastructure Projects Plan in Indonesia 2019. Jakarta, Indonesia. https://library.pppknowledgelab.org/documents/5826/download; World Bank Group. Procuring Infrastructure Public–Private Partnerships 2018 in Indonesia. https://bpp.worldbank.org/content/dam/documents/bpp/indonesia.pdf

    • National Framework for Enabling PPPs

      The PPP Process

      Parameters

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      Does the PPP legal and regulatory framework provide for a PPP implementation process covering the entire PPP life cycle? (except for the post-award contract management)
      Does the Feasibility Assessment Stage cover

      • Technical feasibility?

      • Socioeconomic feasibility?

      • Environmental sustainability?

      • Financial feasibility?

      • Fiscal affordability assessment?

      • Legal assessment?

      • Risk assessment and PPP project structuring?

      • Value for Money assessment?

      • Market sounding with stakeholders?
      Is the PPP procurement plan required?
      Is there a need to set up a separate PPP procurement committee?
      Is competitive bidding the only method for selection of PPP private developer?
      Is the prequalification stage necessary? Or does the PPP legal and regulatory framework allow flexibility to skip the prequalification stage? Prequalification not obligatory
      Does the PPP legal and regulatory process provide the option to the preferred bidder for contract negotiations? (in case of Direct Appointment)
      Does the PPP legal and regulatory framework allow unsuccessful bidders to challenge the award/submit complaints? a
      What is the maximum time allowed for submitting a complaint/challenging the award by unsuccessful bidders from the announcement of the preferred bidder? 5 days
      Does the PPP legal and regulatory framework provide for transparency?
      Which of the following are required to be published?

      • Findings from the feasibility assessment?

             		b

      • Procurement notice?

      • Outcome of stakeholder consultations from market sounding?

      • Clarifications to prequalification queries?

      • Prequalification results?

      • Clarifications to pre-bid queries?

      • Results for the bid stage and selection of preferred bidder?

      • Final concession agreement to be entered between the government agency and the preferred bidder? And other PPP project agreements executed between government agency and preferred bidder?

      • Confidentiality
      • aAsian Development Bank (ADB). 2019. Public-Private Partnership Monitor(second edition). Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.
      • bTypically, the Ministry of National Development Planning (BAPPENAS) includes the basic pre-feasibility outcomes in Public-Private Partnership: Infrastructure Projects Plan in Indonesia, an annual publication that includes the project descriptions, specifications, findings of environmental impact assessments, land issues, project structure briefs, and indicative internal rates of return for the projects.
      • Yes
      • No
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      National Framework for Enabling PPPs

      The PPP Process

      The implementation of a PPP project consists of three key stages specified in Presidential Regulation No. 38 of 2015:

      • Planning stage.
      • Preparation stage.
      • Transaction stage.
      The Three Stages of a Public–Private Partnership Project and their Outputs

       

      GCA = government contracting agency, BAPPENAS = Ministry of National Development Planning, BKPM = Indonesia Investment Coordinating Board, BOD = board of directors, BUPI = Infrastructure Guarantee Corporation, ROE = regional government-owned enterprise, MOF = Ministry of Finance, SOE = state-owned enterprise.

      a PPP Book refers to Public–Private Partnership: Infrastructure Projects Plan in Indonesia, published annually by BAPPENAS.

      Source: Government of Indonesia. Presidential Regulation No. 38 of 2015.

    • National Framework for Enabling PPPs

      Standard Operating Procedures, Tool Kits, Templates, and Model Bid Documents for PPPs

      Parameters

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      Does the country have PPP Guidelines/PPP Guidance Manual?
      Does the PPP Guidelines/PPP Guidance Manual adequately cover the process, entities involved, roles and responsibilities of various entities, approvals required at various stages, and the timelines for the various stages of the PPP project life cycle?
      What are the templates and checklists available in the PPP Guidelines/PPP Guidance Manual?

      • Project Needs Assessment and Options Analysis checklist?

      • Project Due Diligence checklist?

      • Technical Assessment checklist?

      • Environmental Assessment checklist?

      • PPP Procurement Plan template?
      Does the country have standardizedmodel bidding documents for PPPs?

      • Model Request for Qualification (RFQ) document?

      • Model Request for Proposal (RFP) document?

      • Model PPP/Concession Agreement?

      • State Support Agreement?

      • VGF Agreement?

      • Guarantee Agreement?

      • Power Purchase Agreement?

      • Capacity Take-or-Pay Contract?

      • Fuel Supply Agreement?

      • Transmission and Use of System Agreement?

      • Performance-Based Operations and Maintenance Contract?

      • Engineering, Procurement and Construction Contract?

             		(except for PPAs, which are available in subsectors for non-WTE projects)
      Does the country have standardized PPP agreement terms?
      Does the country have standardized/ model tool kits to facilitate identification, preparation, procurement, and management of PPP projects?

      • PPP Family Indicator?

             		a

      • PPP Mode Validity Indicator?

             		a

      • PPP Suitability Filter?

             		a

      • PPP Screening Tool?

             		a

      • Financial Viability Indicator Model?

             		a

      • Economic Viability Indicator Model?

             		a

      • VFM Indicator Tool?

             		a

      • Readiness Filter?

             		a
      Is there a framework for monitoring fiscal risks from PPPs including the following?

      • Process for assessing fiscal commitments?

      • Process for approving fiscal commitments?

      • Process for monitoring fiscal commitments?

      • Process for reporting fiscal commitments?

      • Process for budgeting fiscal commitments?
      Are there fiscal prudence norms/thresholds to limit fiscal exposure to PPPs?
      Is there a process for assessing and budgeting contingent liabilities from PPPs?
      • aThere are reference documents. For example, the Office of Public-Private Partnership (OPPP), at the Asian Development Bank (ADB), has delivered screening tools for teaching hospitals and higher-education facilities that the Ministry of Health, the Ministry of Higher Education, and the Ministry of National Development Planning (BAPPENAS) can utilize for such subsector projects.
      • Yes
      • No
      • Unavailable
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      National Framework for Enabling PPPs

      Standard Operating Procedures, Tool Kits, Templates, and Model Bid Documents for PPPs

      The following guidelines are available:

      • Minister of National Development Planning/Head of National Development Planning Agency Regulation No. 4 of 2015, regarding the operational guidelines for PPPs in infrastructure provision.
      • Head of LKPP Regulation No. 19 of 2015, regarding guidelines for procuring business entities for PPPs in infrastructure provision.
      • Head of LKPP Regulation No. 29 of 2018, regarding the guidelines for procuring business entities for solicited PPP infrastructure projects.

      These regulations largely define the process, approvals, timelines, and other related criteria set by the GCA and procurement committee for the selection of the special purpose company (SPC).

      PPA = power purchase agreement, VFM = value for money, VGF = viability gap fund, WTE = waste-to-energy.

      Key Clauses Related to PPP Agreements

      Parameters

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      Does the law specifically enable lenders the following rights:

      • Security over the project assets?

      • Security over the land on which they are built (land use right)?

      • Security over the shares of a PPP project company?

      • Can there be a direct agreement between the government and lenders?

      • Do lenders get priority in the case of insolvency?

      • Can lenders be given step-in rights?
      Does the law specifically enable compensation payment to the private partner in case of early termination due to:

      • Public sector default or termination for reasons of public interest?

      • Private sector default?

      • Force majeure?
      Does the law enable the concept of economic/financial equilibrium?
      Does the law enable compensation payment to the private partner due to:

      • Material adverse government action?

      • Force majeure?

      • Change in law?
      • Yes
      • No
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      National Framework for Enabling PPPs

      Standard Operating Procedures, Tool Kits, Templates, and Model Bid Documents for PPPs

      Key Clauses Related to PPP Agreements

      Presidential Regulation No. 38 of 2015 requires the inclusion of certain provisions in any PPP agreement between the government contracting agency (GCA) and the special purpose company (SPC). 

      • Performance security. The SPC needs to provide performance security when signing of the agreement. It is stipulated that the amount of performance security will be a maximum of 5% of the investment value of the PPP project.
      • Transfer of ownership. While the detailed guidelines regarding ownership transfers are unavailable (there are no model documents), the regulation stipulates that the transfer of shares of the SPC before the date when commercial operations begin is restricted: only possible upon prior approval based on the criteria established by the government minister or by the head of the relevant institution, regional government, state-owned enterprise (SOE), or regional government-owned enterprise (ROE).
      • Other requirements. Further, the regulation also stipulates that the agreement shall at the minimum include (this list is not exhaustive):
        • a dispute-resolution mechanism arranged in stages: deliberation and consensus, mediation, and arbitration or court;
        • mechanism for monitoring the performance of the implementing business entity in procurement implementation;
        • “step-in” mechanism for the government and lenders; and
        • a mechanism for handling changes in the scope scenario.1

      Bank loans are usually fully secured and have recourse to project assets in the event of default. The types of security commonly used for project finance include:

      • security rights to land and goods related to land (including buildings, plants, etc.) and that are an inseparable part of the land, for instance hak tanggungan (mortgage rights);
      • fiduciary security (non-possessory security rights, usually established for receivables, shares, insurance, claims, and inventory); and
      • pledges (possessory security rights, usually established for shares, bank accounts, and time deposits).2

      PPP regulations (both old and new) require that PPP contracts include a procedure for determining the grounds for and the consequences of termination or force majeure, as well as a mechanism for allowing variations. However, there are no standard compensation clauses, as there are no model concession documents available. And there is still no clear, standardized system for compensating the private sector partner for unilateral changes by the government during or after the bidding (i.e., before the project reaches financial close), save for energygeneration projects involving independent power producers (IPPs), for which the provisions for termination and rights for compensation (e.g., price adjustments) are regulated under the Ministry of Energy and Mineral Resources (MEMR) Regulation No. 10 of 2017, as lastly amended by MEMR Regulation No. 10 of 2018 (on the principles of power purchase agreements). In addition, for all sectors, a compensation mechanism could be provided to private sector partners through government guarantees.3

      Source: Asian Development Bank (ADB). 2019. Public–Private Partnership Monitor (second edition). Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.

    • National Framework for Enabling PPPs

      Unsolicited PPP Proposals

      Parameters

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      Does the PPP legal and regulatory framework allow submission and acceptance of unsolicited proposals?
      What are the advantages provided to the project proponent for an unsolicited bid?

      • Competitive advantage at bid evaluation?

             		(an additional 10% for its bidding evaluation score)

      • Swiss Challenge?

      • Compensation of the project development costs?

      • Government support for land acquisition and resettlement cost?

      • Government support in the form of viabiity gap funding and guarantees?
      • Yes
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      National Framework for Enabling PPPs

      Unsolicited PPP Proposals

      The PPP Regulation No. 38 of 2015 states that infrastructure provision may be initiated by a business entity (i.e., unsolicited project proposals) if three major requirements are met: (i) technically, the proposal is integrated with the master plan of the sector concerned; (ii) the project is economically and financially feasible; and (iii) the business entity that proposes the initiative has the capability to finance the project.

      When an unsolicited proposal is submitted, a value-for-money (VFM) evaluation and a competitive bidding process are carried out to achieve the highest value from the project. Three major incentives for the private entities to submit unsolicited project proposals are

      • the addition of 10% to the procurement score;
      • the right to match the offer of the highest bidder, based on the results of the assessment during the tender process; and
      • the ability of the government contracting agency (GCA) to purchase the PPP project.

      Chapter V of National Planning and Development Minister Regulation No. 4 of 2015 defines and elaborates on the process for handling unsolicited proposals. Unsolicited proposals are eligible to receive government guarantees as per the relevant laws and regulations.

    • National Framework for Enabling PPPs

      Foreign Investor Participation Restrictions

      Parameters

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      Is there any restriction for foreign investors on:

      • Land use/ownership rights as opposed to similar rights of local investors?

      • Currency conversion?
      PPP projects with foreign sponsor participation (number) 72
      • Yes
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      National Framework for Enabling PPPs

      Foreign Investor Participation Restrictions

      Indonesia’s regulations prevent foreigners and foreign-owned companies from owning land in the country. The Indonesian Agrarian Law of 1960 only allows a foreigner “domiciled in Indonesia” to hold a right-to-use land title (called Hak Pakai) as well as other forms of land title. For the state-owned land, the building rights (Hak Guna Bangunan) can be granted for a maximum period of 50 years (30 years plus a 20-year extension). A limited liability company with foreign ownership could also obtain Hak Pakai for land that may extend up to 70 years.

      Law No. 7 of 2011 and Bank Indonesia Regulation No. 17/3/PBI/2015 both mandate that the Indonesian rupiah must be used in all transactions in Indonesia. Consequently, the project company will receive payment in that currency.

      For foreign investors, Law No. 25 of 2007 (“Investment Law”) requires that foreign direct capital investments in Indonesia be implemented through the establishment of a limited liability company (usually referred to as a “PT PMA,” with “PMA” standing for “Penanaman Modal Asing” or “foreign capital investment”) or of other entities allowed under relevant Indonesian laws and regulations.

      From an infrastructure finance perspective, it is important to note the provisions of the law that do not disallow the granting of security for real estate to foreign lenders or restrict repayments to foreign lenders under a security document or loan agreement. Article 10 (1) of the Indonesian Mortgage Law provides that a loan agreement or other agreement used as a mortgage can be signed overseas, and the associated parties can also be a foreign individual or entity, as long as the loan is used for a development within the territory of the Republic of Indonesia.

      In addition to the above, restrictions in terms of a negative list of investments and employment conditions are applicable to foreign entities investing in Indonesia.

      Article 13 of the Ministry of National Development Planning (BKPM) Regulation No. 14 of 2015 provides the minimum foreign investment capitalization to be fulfilled, as follows:

      • The total investment value must be more than Rp10 billion.
      • The amount of paid-up capital must be a minimum of Rp2.5 billion.
      • Each shareholder is required to contribute a minimum of Rp10 million, and the percentage of share ownership shall be calculated according to the share value.

    • National Framework for Enabling PPPs

      Dispute Resolution

      Parameters

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      Does the country have a Dispute Resolution Tribunal? a
      Does the country have an Institutional Arbitration Mechanism? b
      Can a foreign law be chosen to govern PPP contracts?
      What dispute resolution mechanisms are available for PPP agreements?

      • Court litigation

      • Local arbitration

      • International arbitration
      Has the country signed the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards?
      • Yes
      • No
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      National Framework for Enabling PPPs

      Dispute Resolution

      PPP regulations (both old and new) prescribe that PPP contracts determine the dispute-resolution mechanism. However, there are no standard dispute-resolution procedures for PPPs, as there are no model concession documents available. Most contractual disputes for “less-than-termination” events are resolved through negotiation. If unresolved, domestic or international arbitration is called for, commonly with the Singapore International Arbitration Centre.1

      Arbitration in Indonesia is governed by Law No. 30 of 1999 on Arbitration and Alternative Dispute Resolution. The law defines arbitration as a method of settling a civil dispute outside the general court, based on an arbitration agreement made in writing by the disputing parties.2

      Indonesia has ratified the New York Convention. However, for foreign arbitral awards to be recognized and enforced within the jurisdiction of the Republic of Indonesia, such awards must satisfy the following requirements:

      • The awards are rendered by an arbitration body or by an arbitrator in a country that is bilaterally bound to Indonesia or jointly bound with Indonesia by an international convention on the recognition and enforcement of foreign arbitral awards. Its enforcement is based on the principle of reciprocity.
      • Foreign arbitral awards are limited to those who, according to Indonesian law, fall within the scope of its commercial law.
      • Foreign arbitral awards do not contravene public order.
      • Foreign arbitral awards may be enforced in the Republic of Indonesia after an exequatur (writ of execution) has been obtained from the chairman of the Central Jakarta District Court (footnote 1).

    • National Framework for Enabling PPPs

      Environmental and Social Issues

      Parameters

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      Is there a local regulation establishing a process for environmental impact assessment?
      Is there a legal mechanism for the private partner to limit environmental liability for what is outside of its control or caused by third parties?
      Is there a local regulation establishing a process for social impact assessment?
      Is there involuntary land clearance for PPP projects?
      • Yes
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      National Framework for Enabling PPPs

      Environmental and Social Issues

      The minister of the environment and forestry has issued Regulation No. 38 of 2019, which defines the types of planned businesses and/or activities requiring an environmental impact analysis. This regulation replaced Regulation No. 05 of 2012. It provides a specific list of businesses and activities that must submit an AMDAL (“List of Activities”) in several sectors, such as in construction, water utilization, reclamation, activities involving hazardous and toxic waste (B3), electric power, new and renewable energy, ports, and mining. AMDALs, as per the regulation, fall into three categories (A, B, and C) according to their complexity, impact on the environment, location sensitivity, and environmental capacity. Moreover, the regulation defines the timeline within which the AMDAL preparation has to be undertaken.1

      For social issues, the other relevant laws are: Law No. 2 of 2012, Presidential Regulation No. 71 of 2012 on the Acquisition of Land for Development in the Public Interest, and Presidential Regulation No. 40 of 2014 on Changes to Presidential Regulation No. 71 of 2012.

    • National Framework for Enabling PPPs

      Land Rights

      Parameters

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      Which of the following is permitted to the private partner:

      • Transfer land lease/use/ownership rights to third party

      • Use leased/owned land as collateral

      • Mortgage leased/owned land
      Is there a legal mechanism for granting wayleave rights, for example, laying water pipes or fiber cables over land occupied by persons other than the government or the private partner?
      Is there a land registry/cadastre with public information on land plots?
      Which of the following information on land plots is available to the private partner?

      • Appraisal of land value

      • Landowners

      • Land boundaries

      • Utility connections

      • Immovable property on land

      • Plots classification
      • Yes
      LEARN MORE

      National Framework for Enabling PPPs

      Land Rights

      The key regulations pertaining to land, land use, and land acquisition include:

      • fundamental regulations concerning the Indonesian agrarian framework under Law No. 5 of 1960 on the Basic Agrarian Law, which is currently being amended;
      • Government Regulation No. 40 of 1996 on the Right to Cultivate, Right to Build, and Right to Use Land;
      • Law No. 2 of 2012 on the Acquisition of Land for Development in the Public Interest;
      • Presidential Regulation No. 71 of 2012 (recently amended by Presidential Regulation No. 148 of 2015); and the
      • Regulation of National Land Agency No. 5 of 2012.

       

      Source: ADB. 2019. Public–Private Partnership Monitor (second edition). Manila. https://www.adb.org/sites/default/files/ publication/509426/ppp-monitor-second-edition.pdf.

  • Government Support for PPP Projects

    Project Funding Support

    Parameters

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    Project Funding Support
    Is there a dedicated government financial support mechanism for PPP projects?
    What are the instruments of government financial support available under this government financial support mechanism?

    • Capital grant

    • Operations grant

    • Annuity/availability payments

    • Guarantees to cover

    • Currency inconvertibility and transfer risk

    • Foreign exchange risk

    • War and civil disturbance risk

    • Breach of contract risk

    • Regulatory risk

    • Expropriation risk

    • Government payment obligation risk

    • Credit risk

    • Minimum demand/revenue risk

    • Risk of making annuity/availability payments in a timely manner

    		a
    What are the caps/ceilings for the government financial support under each of the abovementioned government financial support instruments?
    (i) VGF - maximum of 49% of Project Cost
    (ii) Maximum Guarantee limited to 6% of GDP during 2018-2021
    Is there a minimum PPP project size (investment) for a PPP project to be eligible for receiving government financial support? For the VGF, total investment at least Rp100 billion
    Are there minimum financial commitment requirements for the private developer equity before the government support could be drawn? At least 20% of the equity
    Is the government financial support required, usually the bid parameter for PPP projects?
    Are unsolicited PPP proposals eligible to receive government financial support?
    Are there standard operating procedures for providing government financial support to PPP projects?

    • Appraisal and approval process

    • Budgeting process

    • Disbursement process

    • Monitoring process

    • Accounting, auditing, and reporting process

         		(not clear if auditing processes are available)
    Who are the signatories to the government financial support agreement?
    GCA, IIGF, and SPC (for guarantees)
    GCA, MOF, and SPC ( for VGF)b
    Who is responsible for monitoring the performance of PPP projects availing government financial support?

    • Independent engineer?

         		(independent consultants)

    • Government agency?

         		(PJPK)

    • Ministry of Finance?

         		(MOF Feasibility Support Committee)
    What are the other forms of government support available for PPP projects?

    • Land acquisition funding support?

    • Funding support for resettlement and rehabilitation of affected parties?

    • Tax holidays/exemptions?

    • Real estate development rights?

    • Advertising and marketing rights?

    • Interest rate/cost of debt subventions?

    • Other subsidies and subventions?
    Can the other forms of government support be availed over and above the government financial support through various instruments listed above? (schemes offered by PT SMI and PT IIF)
    • Yes
    • No
    • Unavailable
    LEARN MORE

    Government Support for PPP Projects

    The government has taken various initiatives to support infrastructure development under the PPP scheme, such as project development fund (PDF), viability gap fund (VGF), government guarantee, and regulatory support in procurement and land acquisition. The government also provides the availability payment mechanism that gives investment repayment certainty for private investors.

    Viability Gap Fund

    In 2012, under Minister of Finance Regulation No. 223/PMK.011/2012, the government introduced VGF assistance for infrastructure projects. VGF is government support in the form of a partial contribution, up to a maximum of 49% of the construction, equipment, and installation costs of an infrastructure PPP project that has reached economic viability, but not financial viability. VGF is provided as the last resort if there is no alternative that will make the project financially viable. It would only be given to infrastructure projects that are unable to deliver large profits or with too long a turnaround time to attract investors to participate in the tender. VGF does not include costs related to land acquisition and tax incentives.1

    Government Guarantees

    To mitigate government-related financial risk, the government provides guarantee assistance through the Indonesia Infrastructure Guarantee Fund (IIGF) established in 2009. The IIGF acts as a guarantor for the various infrastructure risks stemming from government inaction that could result in financial losses for PPP infrastructure projects, including, for example, license delays, financial close termination or delays, amendments to legislation and regulatory provisions, or changes to tariff structure. The IIGF guarantees the financial obligations of the government contracting agency (GCA) by paying compensation to business entities when infrastructure risks arise in accordance with the allocation agreed in the PPP–KPBU agreement. The infrastructure guarantee is implemented by the IIGF as a single-window policy. If the coverage needs of a guarantee exceed the capacity of the IIGF, there may be a co-guarantee between the Ministry of Finance and the IIGF.2

    Land Acquisition Fund

    In Indonesia, land acquisition is an obligation of the GCA, and Presidential Regulation no. 30 of 2015 which allows investors to prefinance land acquisition and later recovered by the government. In 2017, the Ministry of Finance introduced a land acquisition scheme for national strategic infrastructure PPP projects through LMAN (State Asset Management Agency). The agency is required to provide land funds for these projects to guarantee timely procurement to boost private infrastructure investment.

    According to Presidential Regulation No. 38 of 2015, the source of funding for land acquisition for PPP projects that are listed as PSNs (national strategic projects) are the State Revenue and Expenditure Budget (APBN) and/or the Regional Revenue and Expenditure Budget (APBD).

    Availability Payment

    The availability payment is made from the GCA to the special purpose company (SPC) as a reward for ensuring the availability of the facility and for providing specified services under a PPP–KPBU contract. The availability payment is a fixed amount and is paid throughout the operation period, with a possible deduction in case the SPC fails to fulfill certain requirements. The availability payment essentially covers all costs (construction, operation and maintenance, project financing, etc.) and also the return for investors.3

    The availability payment mechanism is guided by Ministry of Finance (MOF) Regulation No. 260/PMK.08/2016 and Ministry of Home Affairs (MOHA) Regulation No. 96 of 2016.

    Other Financial Incentives

    Indonesia has regulations on financial incentives such as tax holidays, tax allowances, and import duty facilities. MOF Regulation No.35 of 2018 provides for (i) 5- to 15-year tax exemptions, with a potential 20-year exemption for projects that are considered strategic for Indonesia’s economy; and (ii) up to a 100% reduction on taxes for businesses in 17 eligible industries. Government Regulation No. 9 of 2016 allows a reduction in the corporate net income tax for 6 years equivalent to 30% of investment value, including 5% each year for various eligible segments. And MOF Regulation No. 176/PMK.011/2009 has provisions for exemptions from import duties for eligible cases.4

    Nongovernment Equity Financing

    The Non-Government Budget Equity Financing (“PINA” in Indonesian abbreviation) is a facilitation scheme aimed to accelerate the financial close of national priority projects. The PINA Center for Private Investment, a unit under the Ministry of National Development Planning (BAPPENAS), undertakes a strategic role in facilitating the project financing and enable any "de-bottlenecking" of financing process for Indonesia’s infrastructure development. Founded in 2017, the PINA Center for Private Investment successfully facilitated $3.3 billion for 11 projects across sectors by end of 2018.

    PINA offers alternative financing options to the investors. Three main instruments are Direct Equity, Hybrid, and Funds.5

    GCA= government contracting agency, GDP = gross domestic product, IIGF = Indonesia Infrastructure Guarantee Fund, MOF = Ministry of Finance, PJPK = government institution responsible for a PPP project, PT IIF = Indonesia Infrastructure Finance, PT SMI = PT Sarana Multi Infrastruktur (an Indonesian state-owned infrastructure financing company), SPC = special purpose company, VGF = viability gap fund.

    Project Development Funding

    Parameters

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    Project Development Funding
    What are the various sources of funds for PPP project preparation?

    • Budgetary allocations

    • Dedicated project preparation/project development fund

    • Technical assistance from multilateral/bilateral/and donor agencies

    • Recovery of project preparation funding from the preferred bidder
    At what stage of the PPP project, can the project preparation/development funding be availed by the government agency?

    • Pre-feasibility stage

    • Detailed feasibility stage

    • Transaction stage
    Is there a list of project preparation/project development activities towards which the project development funding can be utilized?
    Can the project development funding be utilized to appoint transaction advisors for PPP projects?
    Is there a specific process to be followed by government agencies to appoint transaction advisors?
    What are the payment mechanisms for making payments to transaction advisors?

    • Timesheet-based

    • Milestone-based
    Are there standard agreements and documents to avail project development funding?
    Who are the signatories to the project development funding agreements? GCA and PT SMI or IIGF
    • Yes
    LEARN MORE

    Government Support for PPP Projects

    Project Development Facility

    To develop the required documentation standards and studies for the preparation and the implementation of PPP–KPBU project transactions, particularly the pre-feasibility study and the PPP agreement design documents, the government provides support through the Project Development Facility (PDF). The PDF is managed by the Ministry of Finance through the Directorate General of Budget Financing and Risk Management. The primary function of the PDF is to help the government contracting agency (GCA) increase the effectiveness of the preparation and/or the implementation of PPP project transactions to meet the specified quality and time. The PDF encompasses several types of facilities:

    • Project preparation facility
      • Preparation of the pre-feasibility study (to assess the feasibility of a PPP by considering at the minimum the legal, technical, economic, financial, risk management, environmental, and social aspects).
      • Preparation of all studies and documents supporting the pre-feasibility study.
    • Transaction assistance facility
      • Procurement of implementing business entities.
      • PPP agreement signing.
      • Financing for the PPP project (financial close) as long as it is part of the responsibility allocated to the GCA based on the PPP agreement.
    • Combined project preparation and transaction assistance facilities. The scope consists of a combination of the two types of facilities(italics in the original).1

    The legal basis for the PDF consists of the following:

    • Presidential Decree Number 75 Number 75 of 2014 about Acceleration of Provision of Priority Infrastructure.
    • Presidential Decree Number 122 of 2016 about Amendment to Presidential Regulation Number 75 of 2014 about Acceleration of Provision of Priority Infrastructure.
    • Ministry of Finance of Regulation Number 73/PMK.08/2018 about Facilities for the Preparation and Implementation of Transactions of Government Cooperation Projects with Business Entities in the Provision of Infrastructure.
    • Ministry of Finance Regulation Number 129/PMK.011/2016 about Amendment to Minister of Finance Regulation Number 265/PMK.08/2015.2

    GCA = government contracting agency, IIGF = Indonesia Infrastructure Guarantee Fund, PT SMI = PT Sarana Multi Infrastruktur (an Indonesian state-owned infrastructure financing company).

  • Maturity of the PPP Market

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    PPP Project Statistics

    • Is there a national PPP database for the country?

         		a
    Is the distribution of PPP projects across infrastructure sectors available?
    Is the distribution of PPP projects across various stages of the PPP life cycle available? a and b
    • aThere is no single consolidated database that serves as the PPP database for the country. The Asian Development Bank (ADB) is working to create a national project database. There are multiple lists maintained by different entities such as the Ministry of Finance and the Ministry of National Development Planning (BAPPENAS).
    • bGovernment of Indonesia, BAPPENAS. 2019. Public-Private Partnership: Infrastructure Projects Plan in Indonesia 2019. Jakarta. https://library.pppknowledgelab.org/documents/5826/download.
    • Yes
    • No
    LEARN MORE

    Maturity of the PPP Market

    The Directorate of Government Support and Infrastructure Financing Management, within the Directorate General of Budget Financing and Risk Management, maintains a list of PPP projects indicating where they are in the stages of a project life cycle: the preparation stage, auction stage, financing acquisition stage, construction stage, and operational stage.

    Sources: Government of Indonesia, BAPPENAS. 2019. Public–Private Partnership: Infrastructure Projects Plan in Indonesia 2019. Jakarta. https://library.pppknowledgelab.org/documents/5826/download.

    PPP Project Pipeline

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    Does the country publish a national PPP project pipeline?
    At what frequency is the national PPP project pipeline published? Annually
    Is the national PPP project pipeline based on the national infrastructure plan for the country?
    • Yes

    PPP Book

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    Sources of PPP Financing
    Who are the typical entities financing PPP projects in the country?

    • Private developers

    • Construction contractors

    • Institutional/financial/private equity investors

    • Pension funds

         		(indirectly by purchase of bonds)

    • Insurance companies

    • Banks

    • Nonbanking financial corporations/Financial institutions

    • Donor agencies

    • Government agencies and state-owned enterprises
    What is the distribution of financing among these entities financing PPP projects?
    Does the country have the history/track record of issuing bonds by infrastructure projects?
    How many infrastructure projects private developers for infrastructure projects have raised funding through bond issuances?
    What is the value of funding raised through capital markets by PPPs?
    Does the country have a matured derivatives market to hedge certain risks associated with PPPs?
    Does the country have a national development bank?
    Does the country have credit rating agencies to rate infrastructure projects?
    Typically, what are the credit ratings achieved/received by infrastructure projects?
    Is there a threshold credit rating for infrastructure PPPs below which institutional investors, pension funds, and insurance companies would not invest in infrastructure PPPs?
    What is the typical funding model for infrastructure PPPs -- corporate finance or project finance?
    Are there regulatory limits/restrictions for the maximum exposure that can be taken by banks to infrastructure projects?
    • Yes
    • No
    • Unavailable
    LEARN MORE

    Maturity of the PPP Market

    In compliance with BAPPENAS Regulation No. 4 of 2015, the ministry publishes Public–Private Partnership: Infrastructure Projects Plan in Indonesia (also known as the “PPP Book”) on an annual basis. The publication provides the information on PPP infrastructure projects in the country that are open to potential investors or any other PPP stakeholders. The projects listed in the book have been reviewed by BAPPENAS, and they are organized into two categories based on their readiness level: “under preparation” and “ready to offer.” However, the PPP Book also provides information on projects that have entered into transaction stage (tender process, already tendered) and covers success stories of PPP projects in Indonesia.1

    In addition to the PPP Book, the government has identified a list of national strategic projects (PSNs) led by the Committee for Acceleration of Priority Infrastructure Delivery (KPPIP), which was formed under the Presidential Regulation No. 75 of 2014. For such priority projects, the KPPIP ensures that the projects are prepared in accordance with quality standards it has established, and controls the steps taken to overcome any bottlenecks.

    The government attracts private sector participation in PPP projects by offering two options for project financing:

    • PPP projects offering an internal rate of return (IRR) that is higher than 13%, use the PINA scheme.
    • PPP projects offering an IRR that is lower than 13%, use a PPP–KPBU contract with a government-support or government-guarantee scheme.2

    Infrastructure financing in Indonesia has largely been provided by banks, primarily international banks based in the People’s Republic of China (PRC) and Japan. There is little financing from capital markets specialized in the development of new infrastructure. Bonds for individual projects are unavailable partly because of the lack of a credit culture among domestic investors. The bond market is limited to plain vanilla corporate bonds issued by large utilities and construction companies, mostly by state-owned enterprises (SOEs).

    The PPP and infrastructure sectors have only recently started opening up to structured products. Dana Investasi Infrastruktur (DINFRA) is the only fund devoted to infrastructure project financing that is registered with Indonesia’s Financial Services Authority (OJK).3

    Under OJK Regulation No. 3 of 2015, pension funds are not allowed to invest directly in infrastructure projects; they may only participate in infrastructure investment through bond purchases issued by SOEs. However, international pension funds can participate in special purpose companies (SPCs) involved in PPP projects through direct equity investment. For example, the Canada Pension Plan Investment Board agreed in 2019 to buy a stake in a private toll road operator in Indonesia.4

    Based on the National Financial Market Development and Deepening Strategy (SN-PPPK), there were nine financing instruments that have potential as instruments for infrastructure financing, such as asset-backed securities; mandatory convertible bonds and green bonds; and Shari‘a-based financing instruments, such as the waqf-linked sukuk.5

    Three key institutions involved in different formats of financing or guaranteeing PPP projects are the Indonesia Infrastructure Finance (PT IIF), the PT Sarana Multi Infrastruktur (PT SMI), and the Indonesia Infrastructure Guarantee Fund (IIGF).

    Various Types of Loans for PPPs

    ­Item Non-Limited Recourse Loan Non-Limited Recourse Loan in Local Currency Project Financing by Local Public Sector Banks Interest Rate Swaps Currency Swaps Project Financing through Project Bond Issuance
    Maximum Tenor (Years) 15–20 15–20 Up to 20 Forward duration of <5 < 1  
    Upfront arrangement fee (bps) 100–450 100–550        
    Floor rate LIBOR JIBOR        
    Margin rate (bps) 300–500 500–600        
    Foreign debt as percentage of total debt for project financing (%)     >50      
    Project bonds as percentage of total debt for project financing (%)           <30%
    Typical debt-to-equity ratio 70:30 70:30 75:25      
    Timeline to financial close (months) 6–12 months     6–12 months
    Minimum DSCR covenant levels (x) 1.2–1.5     1.2–1.5
    Nominal interest rates (%) 13-15     NA
    Real interest rates (%) 6-8     NA
    Security Package

    • Lender rights to step-in, substitute

    • Charge on assets

    • Receivables escrow

    • Waterfall mechanism for project cash flows

    • Cash deficit reserves (20%–30% of project cost)

    • Debt service reserves (6 months)

    • Termination coverage for debt due

    • Performance bonds 5%–10% for construction

    • Parent guarantees to backstop project SPV commitments to lenders

    		     

    bps = basis points, DSCR = debt service coverage ratio, JIBOR = Jakarta interbank offered rate, LIBOR = London interbank offered rate, NA = not applicable, SPV = special purpose vehicle,

    An empty cell indicates that the column head does not apply.

    Source: ADB. 2019. Public–Private Partnership Monitor (second edition). Manila. https://www.adb.org/sites/default/files/publication/509426/ppp-monitor-second-edition.pdf.

    Most Active Banks in Project Finance in Indonesia, June 2018–May 2020

    Name Total Project Financing Number of Transactions
    ($ million) (Rp trillion)
    JBIC 604.00 8.4 1
    BNI 541.93 5.3 4
    Bank Mandiri 378.51 5.2 5
    ADB 375.00 4.8 3
    SMBC 348.73 3.3 3
    BRI 238.01 4.1 3
    MUFG 293.81 3.0 3
    IIF 212.72 2.8 4
    Bank Central Asia 201.12 2.4 3
    Intesa Sanpaolo 172.21 8.4 1

    ADB = Asian Development Bank, BNI = Bank Negara Indonesia, BRI = Bank Rakyat Indonesia, IIF = Indonesia Infrastructure Finance, JBIC = Japan Bank for International Cooperation, MUFG = Mitsubishi UFJ Financial Group, SMBC = Sumitomo Mitsui Banking Corporation.

    Source: https://www.inframationnews.com/country-factbook/1447302/indonesia.thtml.

    Most Active Equity Sponsors in Indonesia, June 2018–May 2020

    Name Total Project Financing Transactions
    ($ million) (Rp trillion)
    Marubeni 1,800.00 25.0 1
    Sojitz Corporation 1,800.00 25.0 1
    Pertamina 1,800.00 25.0 1
    Waskita Karya 498.47 6.9 2
    Jasa Marga 390.47 5.4 2
    Ratchaburi Electricity Generating Holding Public Company Limited 350.00 4.9 1
    Medco Energi 350.00 4.9 1
    Sinohydro 257.98 3.6 1
    PT Toba Bara Sejahtra Tbk 257.98 3.6 1
    PT Profesional Telekomunikasi Indonesia (Protelindo) 232.19 3.2 2

    PT = Perseroan Terbatas (limited liability company), Tbk = Terbuka (publically listed company).

    Source: https://www.inframationnews.com/country-factbook/1447302/indonesia.thtml.

    Credit Rating Agencies in Indonesia

    In Indonesia, there are three credit rating agencies:

    • PT Pemeringkat Efek Indonesia (PEFINDO).
    • PT. Fitch Ratings Indonesia.
    • PT. Kredit Rating Indonesia.6
    • 6Source: Statistik Perusahaan Pemeringkat Efek Di Otoritas Jasa Keuangan - Direktorat Lembaga Dan Profesi Penunjang Pasar Modal