Digitizing Government Cooperation with Business Entities

The development of various infrastructures in Indonesia can speed up the implementation process and improve the national economy, prosper the people, realize the availability of adequate public services, and increase Indonesia’s competitiveness in global competition. To realize adequate and sustainable infrastructure, Presidential Regulation of the Republic of Indonesia Number 38 of 2015 regulates Cooperation between the Government and Business Entities in the Provision of Infrastructure so that this cooperation can be carried out broadly, quickly, effectively, efficiently, comprehensively, and continuously.

Public private partnership (PPP) or KPBU is a cooperation between the Government and Business Entities in providing infrastructure and/or services for the public interest. The cooperation refers to the specifications set by the government (in this case the Minister/Head of Institution/Head of Region/State Owned Enterprise/Regional Owned Enterprise), which partly or wholly uses the resources of the Business Entity by taking into account the distribution of risks between the parties involved. The provision of infrastructure through the PPP scheme starts from the planning, preparation, and transaction stages, construction, and operation, to the handover of assets at the end of the concession period.

The Directorate General of Financing and Risk Management (DJPPR) in the Government Support and Infrastructure Financing Management unit (PDPPI) received funding from the World Bank to build a management information system called KPBU 4.0 to support a more effective and efficient PPP process. DJPPR wants to develop dynamic and integrated applications to support and accelerate PPP business processes in the provision of infrastructure development in Indonesia.