ADB is supporting Indonesia’s reforms in the infrastructure sector to attract private sector investments. Subprogram 3 of the project assists in improving the policy, institutional, and legal framework; implementing reforms for transportation, power, oil and gas, water supply and sanitation, and telecommunications; and facilitating the preparation of public-private partnerships.
| Project Name | Infrastructure Reform Sector Development Program - Subprogram 3 | ||||
| Project Number | 40009-043 | ||||
| Country | Indonesia |
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| Project Status | Closed | ||||
| Project Type / Modality of Assistance | Loan |
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| Source of Funding / Amount |
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| Strategic Agendas | Inclusive economic growth |
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| Drivers of Change | Governance and capacity development Private sector development |
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| Sector / Subsector |
Energy / Energy sector development and institutional reform Information and communication technology / ICT strategy and policy, and capacity development Public sector management / Economic affairs management Transport / Transport policies and institutional development Water and other urban infrastructure and services / Urban policy, institutional and capacity development |
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| Gender Equity and Mainstreaming | |||||
| Description | The Government fully recognized that private sector participation (PSP) could not be taken for granted, and that major structural and institutional reforms were needed. The IRSDP, formulated jointly by the Government and its principal development partners, supports a comprehensive medium-term reform agenda in various infrastructure sectors. The program loan supports three key reform pillars which are (i) strategic cross-sector reforms, (ii) sector-specific reforms for transportation, power, oil and gas, water supply and sanitation, and telecommunications; and (iii) facilitation of the preparation of public-private partnerships (PPP) resulting in sound model infrastructure projects that can be replicated. | ||||
| Project Rationale and Linkage to Country/Regional Strategy | Prior to the 1997 Asian financial crisis, Indonesia was able to use infrastructure development to support poverty reduction and economic development. However, the financial shock resulted in cancellation or suspension of many planned public and private infrastructure projects. During 1998-2004, the Government was burdened with the more urgent tasks of financial sector restructuring and fiscal consolidation. As a result, infrastructure investments, which accounted for more than 6% of GDP before 1998, fell to a low of 2% in 2000 and fluctuated around 3% in 2001-2006, reflecting a sharp decline in public and private spending. Until recently, little infrastructure expansion took place, with just some basic preservation and maintenance of infrastructure assets. Though investment in infrastructure has started to turn around in recent years, expenditure levels have yet to rebound to pre-crises levels (Figure 1). By 2008, infrastructure investment had risen to over 3.95% of GDP, but was still insufficient to meet the country's growth aspirations and the growing demand from existing infrastructure users, let alone satisfy the large population who lack access to basic infrastructure services. Last year, in response to the global financial crisis, a substantial infrastructure component was included in the Government's fiscal stimulus package, while this year infrastructure allocations are have risen further by 5.5% as announced in the 2011 budget. The Government has pursued a wide program of reform and has been taking difficult but important actions in key sectors such as power and water. The Government projects that an additional 2% of GDP per year in infrastructure investments is needed to reach 6% growth with increased access for the underserved. | ||||
| Impact | Improved investment climate in Indonesia's economy. | ||||
| Project Outcome | |
|---|---|
| Description of Outcome | Enhanced infrastructure provision and access. |
| Progress Toward Outcome | |
| Implementation Progress | |
| Description of Project Outputs | Component 1: Cross-sector policy, institutional, and legal framework 1. Improved PSP framework 2. Improved cross-sector coordination 3. Transparent risk-sharing decisions 4. Financing facility for lending for PPP projects 5. Formulated consistent PSO policy across sectors 6. 5-year rolling pipeline of projects Component 2: Sector-specific reforms 7. Strengthened sector legal framework 8. Improved infrastructure sector development planning 9. Implemented anticorruption measures in the road sector 10. Completed debt restructuring program for PDAMs Component 3: Facilitation of PPP project transactions 11. Adopted standard bidding documents for PPP projects 12. Completed pre-feasibility studies and tendering for at least 2 PPP projects 13. Provide PDF support for project preparation and transaction execution |
| Status of Implementation Progress (Outputs, Activities, and Issues) | |
| Geographical Location | |
| Safeguard Categories | |
|---|---|
| Environment | C |
| Involuntary Resettlement | C |
| Indigenous Peoples | C |
| Summary of Environmental and Social Aspects | |
|---|---|
| Environmental Aspects | |
| Involuntary Resettlement | |
| Indigenous Peoples | |
| Stakeholder Communication, Participation, and Consultation | |
| During Project Design | |
| During Project Implementation | |
| Business Opportunities | |
|---|---|
| Consulting Services | To be determined |
| Procurement | To be determined |
| Responsible ADB Officer | Carmen M. Ricerra |
| Responsible ADB Department | Southeast Asia Department |
| Responsible ADB Division | Energy Division, SERD |
| Executing Agencies |
National Development Planning Agency (BAPPENAS) [email protected] Jl. Taman Suropati No. 2 Jakarta 10310 Indonesia |
| Timetable | |
|---|---|
| Concept Clearance | 18 Jan 2011 |
| Fact Finding | 01 Mar 2010 to 18 Jan 2011 |
| MRM | 18 Jan 2011 |
| Approval | 01 Dec 2010 |
| Last Review Mission | - |
| PDS Creation Date | 26 Oct 2010 |
| Last PDS Update | 26 Oct 2010 |
Loan 2708-INO
| Milestones | |||||
|---|---|---|---|---|---|
| Approval | Signing Date | Effectivity Date | Closing | ||
| Original | Revised | Actual | |||
| 01 Dec 2010 | 20 Dec 2010 | 28 Dec 2010 | 31 Mar 2011 | - | 29 Dec 2010 |
| Financing Plan | Loan Utilization | ||||
|---|---|---|---|---|---|
| Total (Amount in US$ million) | Date | ADB | Others | Net Percentage | |
| Project Cost | 200.00 | Cumulative Contract Awards | |||
| ADB | 200.00 | 01 Dec 2010 | 200.00 | 0.00 | 100% |
| Counterpart | 0.00 | Cumulative Disbursements | |||
| Cofinancing | 0.00 | 01 Dec 2010 | 200.00 | 0.00 | 100% |
Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.
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| Title | Document Type | Document Date |
|---|---|---|
| Infrastructure Reform Sector Development Program: Program Completion Report | Project/Program Completion Reports | Aug 2017 |
| Loan Agreement for Infrastructure Reform Sector Development Program - Subprogram 3 between Republic of Indonesia and Asian Development Bank dated 20 December 2010 | Loan Agreement (Ordinary Resources) | Dec 2010 |
| Infrastructure Reform Sector Development Program - Subprogram 3 | Reports and Recommendations of the President | Nov 2010 |
| Infrastructure Reform Sector Development Program - Subprogram 3 | Summary Poverty Reduction and Social Strategies | Nov 2010 |
Safeguard Documents See also: Safeguards
Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.
None currently available.
Evaluation Documents See also: Independent Evaluation
| Title | Document Type | Document Date |
|---|---|---|
| Indonesia: Infrastructure Reform Sector Development Program (Subprograms 1, 2, and 3, and an Infrastructure Project Development Facility) | Validations of Project Completion Reports | Jan 2019 |
Related Publications
None currently available.
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Tenders
No tenders for this project were found.
Contracts Awarded
No contracts awarded for this project were found
Procurement Plan
None currently available.