OECD Reviews of Regulatory Reform: Indonesia 2012

Strengthening Co-ordination and Connecting Markets

image of OECD Reviews of Regulatory Reform: Indonesia 2012

The OECD Review of Regulatory Reform in Indonesia focuses on the administrative and institutional arrangements for ensuring that regulations are effective and efficient. It covers the medium term macroeconomic linkages with regulatory policy; of institutional and procedural arrangements for regulatory policy and governance; non-tariff barriers and behind the border constraints to market openness; competition policy in relation to infrastructure; and budgetary and governance arrangements for the management of Public Private Partnerships (PPP). A specific emphasis has been given to the challenges of decentralization for improving connectivity across the Indonesian archipelago and regulatory obstacles in the areas of ports rail and shipping.



Public-private partnership governance

Policy, process and structure

This chapter is a summary of the background report Governance of Public-Private Partnerships (PPPs) in Indonesia. While the government of Indonesia has taken significant steps to define the legal and administrative framework for PPPs and identify a pipeline of projects, further measures are required if Indonesia is to meet its goals for private sector infrastructure investment. These include integrating the selection of PPP projects in the budget process, developing a public sector comparator for evaluating alternative bids, and strengthening the role of the Ministry of Finance to support government contracting agencies and act as a gateway on infrastructure investment decisions.


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