First PPP Center in Indonesia


First PPP Center in Indonesia

Mayor of Makassar Signed Memorandum of Understanding with Penida Capital and HD Asia Advisory at ASEAN Mayors and Makassar Investment Forum


Makassar, Indonesia, 11 September 2015.  In order to scale greater private investment in infrastructure in Eastern Indonesia, Makassar Mayor H. Ramdhan Pomanto, announced that it is launching the first PPP Center namely Makassar Public-Private Partnership Investment Centre (or “MPI Center”).

Quality infrastructure is critical to improving living standards through enabling access to markets and ensuring access to reliable sources of clean water, electricity, and other services. These are but some of the key issues discussed at this year’s ASEAN Mayors and Makassar Investment Forum; a 2-day event from 8 to 9 Spetember in Makassar, attended by leading corporates, investors, financing agencies and mayors representing ASEAN’s 10-member economies and 620 million population, and all seeking ways to underwrite and deliver infrastructure to their citizens.

For Indonesia to emerge as a middle-income economy by 2019 will require over US$450 billion of new infrastructure spending, with two-thirds of this amount underwritten by private investors.

“With the support of institutional investors, the MPI Center will identify and deliver investment-ready infrastructure projects for Makassar and hopefully our partner-cities in Eastern Indonesia and help them overcome the challenges with domestic coordination on a project-by-project basis. This is the first PPP Center in Indonesia,” said Mayor Pomanto.  Specifically, the MPI Center will:

  • provide technical expertise in structuring priority infrastructure projects to a stage where they can be financed.
  • ensure coordination by reviewing project structures, removing regulatory bottlenecks in central and local government, filling gaps and identifying problems in the delivery of particular infrastructure projects; and
  • assist in raising the capacity of relevant entities with infrastructure investment planning and programming.

“Makassar and Eastern Indonesia have become priority regions for investors and for the Government of Indonesia.  We look forward to supporting the MPI Center in delivering infrastructure-ready projects for our international investors,” said Edward Gustely, Managing Director, Penida Capital.

The MPI Center – which Mayor Pomanto launched in partnership with Penida Capital and HD Asia Advisory at the ASEAN Mayors and Makassar Investment Forum, – will be located in the City of Makassar.

“With the central government slow progress in paving the way for private participation in development of infrastructure, MPIC is a breakthrough. We expect the launch of the MPI Center will help lead to the creation of a network of PPP centers in Eastern Indonesia and support the collaboration with existing PPP institutions in the region, in ASEAN, and other Infrastructure Centre of Excellence,” said Bernardus Djonoputro, Managing Partner, HD Asia Advisory.