PPP (Public Private Partnership)

Public-Private Partnership (PPP) describes a government service or private business venture which is funded and operated through a partnership of government and one or more private sector companies.

In 2005 & 2006, the Government of Indonesia organized Indonesia Infrastructure Summit in Jakarta to promote the concept of Public Private Partnerships (PPP) and to attract private investor cooperation in the provision of infrastructures (such as toll roads, electricity, airports and so on) in Indonesia.

 Please see PPP investor guide


 please see OPINION

Boston Consulting Group Opinion (2013)

  1. PLN intends to involve the private sector for the construction of Central Java Coal Fired IPP Project as a model
  2. PLN has appointed IFC (International Finance Corporation) of the World Bank Group, as the transaction advisor
  3. Bappenas (National Development Planning Agency) urged that the Central Java Power Plant Project (CJPP) can be the model for PPP Project in power sector.


see also PPP BOOK 2012

  1. Bidding Document has been completed;
  2. PPP procurement team has been established and ready to operate;
  3. Procurement schedule has been defined;
  4. Government support has been approved (if required)

LEGAL BASIS FOR CENTRAL JAVA                          project profile


  • PERPRES 67/2005 as amended by PERPRES13/2010 on PPP Infrastructure Project
  • MOF Regulation 38/2006 on Government Support for PPP Infrastructure Project
  • CMEA Regulation 4/2006 on the Evaluation of Government support proposal
  • New regulation being introduced under the PPP framework to establish Indonesia Infrastructure Guarantee Fund (IIGF) or PT. Penjaminan Infrastuktur Indonesia (PII) as a Guarantor for the project


  • For IPPs Project through PPP Scheme, a guarantee Agreement will be provided
  • The Guarantee Agreement will be provided by Indonesia Infrastructure Government Fund (IIGF) as the representative of Indonesian Government
  • IIGF is ready to offer a guarantee package which may include Multilateral Development Agency as well as MOF
  • The guarantee package will cover the PLN’s financial obligations under PPA
  • Decision on the risks cover under the guarantee package will be given and tailored based on specifics risk requested by investors and also IIGF’s and Government consideration

The role of IIGF


  •  In January 2011 IIGF/PII launches IDR 30 trillion guarantee for coal-fired power plant in Central Java
  • In May 2011 a consortium of Electric Power Development Co (J-Power), coal miner Adaro Energy and Itochu Corporation was the preferred bidder to develop a coal power plant in Central Java
  • On 6 October 2011 a Public Private Partnership (PP ) was signed to develop a steam power generation project of 2×1000 MW. Details of this cooperation include:
    1. Power Purchase  Agreement between PT PLN (Persero) with
    private power developer PT Bhimasena Power Indonesia ”PT BPI”;
    2. Guarantee Agreement between the RI Minister of Finance and PT PII (Persero) as guarantor, with private power developer PT BPI;
    3. Recourse Agreement between the RI Minister of Finance as guarantor with PT PLN (Persero);
    4. Recourse Agreement between PT PII (Persero) as guarantor and PT PLN (Persero);
    5. Sponsor Agreement to develop projects between J-Power, Itochu and Adaro.
    The Central Java PP steam power plant project is the first large-scale showcase PP project with an investment value of over Rp30 trillion. This PPP project is being implemented based on Presidential Regulation No. 67/2005 regarding Government Cooperation with Business Entities for the Provision of Infrastructure. In 2006, the Government determined the Central Java steam power plant project as a model for the PPP project. Alongside, this project is also included in the Master Plan for Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) and is a showcase model for PP as
    proclaimed by the Government in 2010.




  1. Conformity with the national / regional mid term development plan and the infrastructure sector’s strategic plan;
  2. Conformity of the project’s location with the Regional Spatial Planning;
  3. Linkage between the infrastructure sectors and the regional areas;
  4. Cost recovery potential
  5. Preliminary Study


  1. PLTU New North Sumatera (2 x 200 MW)
  2. PLTU South Sulawesi (200 MW)
  3. PLTU North Sulawesi (2 x 55 MW)
  4. PLTU North Sulawesi New (55 MW)
  5. North Sumatera (Infrastructure) (2 x 55 MW)
  6. PLTU Sumatera Mine Mouth HVDC (2 x 200 MW)
  7. PLTU East Kalimantan (Infrastructure) (2 x 65 MW)



source : PPP Book

Posted June 29, 2011 by repit

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