Font Size:
PPP and Government Guarantee to Strengthen SDGs in Indonesia
Last modified: 2019-09-30
Abstract
Achievement of SDGs depends on availability of public service and infrastructure development. Indonesia’s state budget allocation for infrastructure 2015-2019 is about US$ 358 billion. Meanwhile the government budget is only about US$ 148 billion and covering for 41,3%. Hence, total financing gap for 37 priority projects is US$ 234,8 billion. Private involvement is considered as possible solution to close the gap. Thus, PPP scheme is considered as a promising alternative to deliver credible projects to private sectors. One of key success for PPP projects are Government Guarantee. Infrastructure projects which are economically feasible but financially non-viable can be accelerated trough Government Guarantee. Therefore, PPP and Government Guarantee will play decisive role in achieving SDGs in Indonesia. This paper will analyse and explain the important role of PPP and Government Guarantee to strengthen SDGs in Indonesia. As a result, infrastructure PPP Project with Government Guarantee is only need less than 1 year (non-toll road projects) and less than 2 years (toll road projects) to achieve financial close. Moreover, infrastructure PPP Project with Government Guarantee directly enhance to SDGs 6, 7, 9, and 17.
Keywords
SDGs, PPP, Government Guarantee