IndII - Indonesia Infrastructure Initiative

The Indonesia Infrastructure Initiative (IndII) is a three-year project funded by the Australian government. Its goal is to promote economic growth by working with the Government of Indonesia to enhance infrastructure policy, planning and investment. IndII focuses primarily on water and sanitation issues and on transport by road, rail and sea, as well as a number of cross-sectoral policy issues. All of IndII’s activities are designed to build local capacity at both national and sub-national levels. IndII coordinates its efforts with other donors participating in major infrastructure projects, and promotes partnerships between government and the private sector. A selection of its current work includes incentive grants for local governments to invest in their water utility companies, assisting with the development of national master plans for ports and railways, and formulating new guidelines and procedures for the management of transport sector public service obligations.

Recent Activities

Presentation on the Development of Guidelines for Special Railway

The Office of the Deputy for Infrastructure and Regional Development in the Coordinating Ministry for Economic Affairs (CMEA) and the Directorate General of Railway (DGR) both acknowledge the need to promote greater investment in Special Railway. An initial meeting was conducted at DGR on 26 July 2010 to discuss the development of the necessary guidelines. Richard G. Sharp and John Winner from IndII Consultans made presentations. The Guidelines will provide tools to assist national and subnational authorities to establish an effective Special Railway system and will address technical operation; spatial planning; economic viability; risk management; the legal, financial and commercial aspects of investment; and environmental and social impacts. Representatives from DGR, CMEA, Bappenas, the Ministry of Finance, and the Study Center for Partnership and Transportation Service (MoT)participated in the meeting and provide inputs and recommendations.

Infrastructure Enhancement Grants for Sanitation Development Acceleration Program

To increase access to clean water and improve sanitation, the Directorate General of Human Settlements (DGHS) is creating a Sanitation Development Acceleration program utilising an Infrastructure Enhancement Grant from IndII. The program concept was discussed in a workshop held on 20 July 2010 at Grand Flora Hotel, Jakarta. The workshop also explained how the 2010 budget data of Local Governments (LGs) will potentially be used as part of the process to select participating LGs. The workshop was chaired by Ir. Rina Agustin I, MURP and Rudi Arifin from DGHS, Nugroho Tri Utomo from Bappenas, and Rita Herlina from the Directorate General of Financial Balance, MoF. LGs that are candidates for the program include Makassar, Yogyakarta, Purworejo, Probolinggo, Jombang, Solok, Deli Serdang, Sanggau and Banjarmasin. Field visits will be arranged soon to follow up.

Workshop on Socialisation of the Water and Sanitation Hibah Program

To accelerate adoption of the Water and Sanitation Hibah program, the Directorate General of Human Settlement (DGCK) in the Ministry of Public Works held a workshop to explain the program’s implementation guidelines to Local Government officials and representatives of local water companies. Sixty-four participants from 17 cities and regencies took part in the workshop, held on 13 July 2010 at Grand Kemang Hotel in Jakarta. Topics covered included program requirements, the financing process and technical aspects of the program. The presenters were Ir. Rina Agustin I, MURP, Section Head of Foreign Partnership, and Ir. Alex Abdi Chalik, MT, Section Head of Water Development, both officials at DGCK; and Rita Herlina, Section Head of Local Hibah, Directorate General of Finance Balancing (DJPK), Ministry of Finance.