Committee for Acceleration of Priority Infrastructure Delivery

Infrastructure provision in Indonesia often faces obstacles due to the lack of coordination between various stakeholders involved, namely the Government (ministries, institutions, regional governments, SOEs/ROEs) and the private sector. Such a large range of stakeholders, each having its own objectives and responsibilities, has the potential to cause delays to the implementation of infrastructure projects. Therefore, the establishment of a committee that can work across ministries and institutions will facilitate and assist the Project Owner in preparing and performing the development of the project.

The Committee for Acceleration of Priority Infrastructure Delivery (KPPIP) was established with the main objective of becoming a coordinating unit in decision-making processes to encourage settlement of issues arising from the lack of effective coordination between the various stakeholders. KPPIP acts as the point of contact to facilitate coordination in debottlenecking efforts for National Strategic Projects and Priority Projects.

KPPIP was formed by revitalizing KKPPI (National Committee for the Acceleration of Infrastructure Provision), which was considered ineffective for several reasons such as lack of decision-making authority, limited roles at all stages of the projects starting from the design stage until the commencement of the construction, inability to provide incentives or disincentives in order to encourage projects acceleration, and an organizational structure that was too large that often caused ardous decision-making process. Taking such limitations into consideration, Presidential Regulation No. 75 of 2014 on Acceleration in Priority Infrastructure Delivery was issued for the purpose of establishing KPPIP.

Led by the Coordinating Minister for Economic Affairs as the Chairperson, the Committee consists of the Minister of Finance, Minister of PPN (National Development Planning)/Head of Bappenas (National Development Planning Agency), and Minister of Agrarian Affairs and Spatial Planning. Due to the change of the structure of Kabinet Kerja (the currently ruling cabinet) in October 2014, a change in the organization structure to include the Coordinating Minister for Maritime Affairs and Minister of the Environment and Forestry in the membership is currently under consideration.

According to the mandates as provided under Presidential Regulation No. 75 of 2014, KPPIP will provide support for the projects selected as priority projects in line with the criteria established by KPPIP. For such priority projects, KPPIP will ensure that the projects are prepared in accordance with quality standards it has established and will control the steps taken for problem resolution. Furthermore, KPPIP will apply incentive/disincentive schemes to follow-up project monitoring results so that all relevant parties are encouraged to accelerate the delivery of the priority projects. Besides that, KPPIP also has a duty to expand the capacity of the Government Contracting Agencies (GCAs) to ensure their capability for providing the projects as well as a duty to coordinate issuance of regulations and policies related to infrastructure. The chart below shows a brief description of the roles and functions of KPPIP derived from the objective of its establishment.

6 Main Duties of KPPIP as Mandated in The Presidential Regulation No. 75 of 2014

 

kppip_mandate

In line with the development of economic policies, the roles of KPPIP are in adjustment to these developments. KPPIP has been entrusted with selecting National Strategic Projects (PSN), which have been given privileges and accelerating facilities as stipulated by Presidential Regulation No. 3 of 2016 on Acceleration of the Implementation of National Strategic Projects. From the PSN list of projects, KPPIP selected some projects to be put on the list of priority projects. In 2015, KPPIP nalized various preparations for the operation, establishment and image building of the committee, which among others covered:

  1. Establishment and operation of various Working Teams (Tim Kerja1) dan Project Management Offices (PMO);
  2. Finalization of the List of Priority Projects for 2015 – 2019 as stipulated by Coordinating Minister for Economic Affairs Regulation (Permenko) No. 12 of 2015;
  3. Provision of facility to prepare Pre-Feasibility Study, Value for Money, and AMDAL Study for the selected Priority Projects;
  4. Preparations for and establishment of Standard Operating Procedure (SOP) and mechanisms for monitoring and debottlenecking;
  5. Actual acceleration in priority projects as elaborated further herein;
  6. Mapping of improvements to be made to regulations on infrastructure;
  7. Development of an IT system for the purpose of project management and improvements in decision-making quality.

 

By having completed the operationalization of the Committee in 2015, KPPIP is expected to be able to accelerate the accomplishment of the tasks as mandated by Presidential Regulation No. 75 of 2014. In order to achieve the target for 2016, KPPIP will push for financial closure of 2 to 4 priority projects, establish all Working Teams required, and ensure that the IT system is fully operational by the end of the 1st Quarter for the use of all stakeholders. It is expected that all of the endeavors will encourage the development of infrastructure urgently required to improve the economy of Indonesia.