PPP Indonesia is constituted by some regulatory and institutional frameworks that work as guidance for both the government and private sector during the project. The government of Indonesia has been criticized due to the inconsistency of the regulation and the lack of transparency. However, things have gone better for these past several years due to the government’s commitment to accelerate infrastructure development by incorporating private sector’s participation. Here is the brief overview of the regulatory and institutional framework of Public Private Partnership in Indonesia.  

 Regulatory Framework
The government has refined the regulatory framework for Public Private Partnership to make the country and the projects look more attractive to private investors. One of the most important regulations is Presidential Regulation No. 38/2015 which regulates the implementation of PPP in infrastructure development. This regulation gives clearer explanations about how the government will support and guarantee the project that will give more confidence to the private sector about the government’s commitment. Meanwhile, Law 2/2012 and Government Regulation 27/2012 are more directed towards the protection of Indonesia’s citizens and national interest. The first law regulates the land acquisition and shows the government’s commitment to protect the public. Meanwhile the later regulates the environmental permit.

 Institutional Framework
The institutional framework regulates which institution is in charge of PPP Indonesia. National Development Planning Agency (BAPPENAS) is in charge of deciding which project can be done with PPP framework and ensuring the coordination among all the parties involved during the infrastructure development process. Meanwhile, the fiscal and budgeting recommendation is the responsibility of The Ministry of Finance. Besides, there is also KPPIP whose one of the responsibilities is to provide project information for the potential investor. We can see clearly that there are many government bodies involved in a procurement process and the actual project of PPP. Therefore, Indonesia really needs to increase the cooperation between those government bodies to ensure the effectiveness of the development.