Infrastructure Financing through Islamic
Finance in the Islamic Countries
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Table 4.1. 4: Targets of Medium Term National Development Planning (RPJNM)
RPJMN
2005-2009
RPJMN
2010-2014
RPJMN
2015-2019
RPJMN
2020-2025
Target To develop Indonesia
as a secure, prosper,
fair and democratic
country with an
improved public
welfare.
To enhance the quality
of human resources,
develop information
and technology, and
strengthen economic
competitiveness.
To distribute
economic
development with the
bases of natural
resources, high
quality human
resources, and
information and
technology.
To have an
independent, well-
developed,
prosperous and just
country through
accelerated economic
development and a
robust and
competitive economic
structure.
Source: Ministry of National Development Planning (2005-2018).
The Committee for the Acceleration of Priority Infrastructure Delivery (KPPIP) was
reconstituted under Presidential Regulation No. 75/2014 to help implement national strategic
and priority projects.24 Other than determining strategy and policy and facilitating the capacity
and institutional building related to priority infrastructure delivery, the mandates of KPPIP
include developing pre-feasibility study quality standards, determining priority projects,
determining funding schemes and sources, and monitoring and debottlenecking the
implementation of projects. The members of KPPIP are represented by the Minister of
Economic Affairs (coordinating minister), Minister of Agrarian and Spatial Planning, Minister
of Finance and Minister of National Development Planning (Bappenes). KPPIP has a full time
Project Management Office that manages and delivers the strategic and priority infrastructure
projects in the country. Along with providing knowledge sharing on project preparation and
debottlenecking for the RPJMM projects, KPPIP monitors, evaluates and debottlenecks the
National Strategic Projects. For Priority Projects, KPPIP is actively involved in the whole
project life-cycle starting from project preparation, operations and maintenance.
The PPP Directorate of Indonesia under Bappenes is responsible for policies related to PPP in
the country. The Directorate’s role is to develop cooperation between the government and
private sector in the areas related to infrastructure under the arrangements of public-private
partnerships (PPP). Among other things, the Directorate is responsible for assessing,
implementing and monitoring the projects undertaken under PPP arrangements in a
transparent and efficient manner.25 The ministry published a detailed document on the
infrastructure projects that would be implemented under PPP.26
PT Sarana Multi Infrastructure (PT SMI) was established as a state-owned enterprise (SEO)
financial institution to provide advisory services, project development and long-term financing
facilities. The funding sources include equity, loans and grants, bonds and securities and
securitization. PT SMI’s capacity to assist infrastructure development was enhanced by its
merger with the Indonesian Investment Center in 2017. The Availability Payment scheme was
instituted by the Ministry of Finance (stipulated by Presidential Regulation no 38/2015 and
Ministry of Finance Regulation no 190/PMK.08/2015) to support projects that are not
commercially viable and have high demand risks to enable private participation.
24 The information is taken from Utomo and Haryanto (2016).
25
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