Indonesia Country Report

Riatu M Oibthiyyah
Authors registered in the RePEc Author Service: Riatu Qibthiyyah

Chapter 3 in Financing ASEAN Connectivity, pp 103-129 from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: This report gives deeper insights on how the infrastructure development is being funded in different ASEAN Member States (AMSs) for ASEAN Connectivity. In this regards, the Public-Private Partnership (PPP) Program is also seen as one way to help build the infrastructure in ASEAN. The AMSs are having different levels of infrastructure policy, financing method and financial capacity. The PPP Program has been significantly developed and utilized in Malaysia, Indonesia, Thailand and the Philippines, and recently in Singapore. Whilst Cambodia and Viet Nam have not yet formalized the PPP, private sector participation has become increasingly important in infrastructure development. Laos and Myanmar have potentials, although are facing multiple challenges from lacking of fiscal sources to fiscal sustainability. PPP still takes less significant role in Brunei that has abundant public financial resources to build infrastructure. The differences amongst ASEAN countries mentioned above are seen in many ways. The issues discussed in this report consists of the country fiscal situation, regulatory framework, potential financial sources, the PPP in the ASEAN and PPP in an ASEAN Way. This report is hoped to give broader and better picture of the financing situation in ASEAN's infrastructure development and to help both academies and policymakers in making recommendations and policies regarding infrastructure development in ASEAN for ASEAN Connectivity.

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