UK Government and the World Bank support Indonesia in improving infrastructure project preparation and delivery

Jakarta, 6 October 2021 - Through a World Bank program with UK Government funding, PwC Indonesia develop an Early Business Case for the Bandung Basin Metropolitan Area Mass Transportation Project.

President Jokowi, in his state speech on 16 August 2021, stated that infrastructure development is still one of the main focuses to drive Indonesia’s economic growth. Now, more than ever, it is essential that infrastructure projects undergo a robust planning and preparation process to ensure the necessary analysis has been conducted and to allow government officials to make informed decisions. More effective and structured business cases will result in better quality projects and attract investors and lenders. With the background of the pandemic, it is crucial that infrastructure financing should come not only from the state budget but also involve other parties, including the private sector.

The Minister of National Planning and Development (Bappenas), Dr. Ir. H. Suharso Monoarfa, stated:
“We see that infrastructure development is the key to Indonesia's success in accelerating economic development. In Indonesia's 2045 vision and mission, economic transformation must begin in 2020-2024 to provide a solid foundation towards an Indonesia Emas 2045. Indonesia has a vision and mission to become the country with the fifth largest GDP in the world by 2045, so the 2020-2024 RPJMN is prepared as a starting point for achieving the target in Indonesia's vision in 2045, which will make us a high-economy country."

In line with this ambition, as many as 300 Indonesian government officials at the Central and Provincial Government levels participated in the “Five Case Model Infrastructure Business Case” training held by the UK Government. This training is intended to improve the preparation and assessment of infrastructure business cases, based on UK best practices and G20 principles over the past two years, as part of a UK Government programmes series entitled “Global Infrastructure Programme” and presented by PwC Indonesia.

This ceremony, witnessed by Ir. A. Koswara, M. P. - Head of Transportation Agency of West Java Province, representing West Java Governor, Ridwan Kamil, Owen Jenkins - British Ambassador to Indonesia and Timor Leste, David Ingham - Senior Urban Transport Specialist Consultant and Elena Chesheva - Senior Transport Specialist from World Bank, and Julian Smith - Government and Infrastructure Advisor for PwC Indonesia, celebrates the participants’ achievements in obtaining certification through APMG in the foundation and/or practitioner courses.

British Ambassador to Indonesia and Timor Leste, Owen Jenkins, said:
“Infrastructure is vital for any country’s economic growth and development, as it provides the foundation on which all growth can be built. Under President Joko Widodo, Indonesia has made vital progress: Indonesia is better connected through transport infrastructure, and the Start-up ecosystem has boomed, creating innovations we can all benefit from. Indonesia is continuing to work towards connecting existing infrastructure so as to optimise use, as well as increasing infrastructure investment by drawing on private funding. The UK supports Indonesia’s efforts, and through this programme we hope to have empowered Civil Servants with the knowledge they need to make the decisions that best serve Indonesia’s future. Officials from both central and local government have taken part and completed the course. I look forward to handing out the certificates to them. Congratulations!”

Head of International, UK Infrastructure and Projects Authority, James Ballingall, added:
"We have been working with Indonesia for over four years on our Global Infrastructure Programme. This programme is designed to help countries produce better business cases or propositions for infrastructure projects that will help them be strategically important, commercially viable, and financeable. This methodology has been adopted and put forward as best practice by the G20, and is being used by different countries around the world - and Indonesia is at the front of that movement."

For the final phase of the Global Infrastructure Programme, the UK Government’s Foreign and Commonwealth Development Office provided funding to the World Bank through the Indonesia Sustainable Urbanization Multi-Donor Trust Fund to apply the Five Case Model and the G20 Principles for the Infrastructure Project Preparation Phase in an Early Business Case for the Bandung Basin Metropolitan Area Mass Transit Project in West Java Province. In this ceremony, the completed Early Business Case was symbolically handed over to the West Java Provincial Government.

Ir. Koswara as Head of Transportation Agency of West Java Province, said:
“The West Java Provincial Government proposes the Greater Bandung LRT project plan with the assistance of Bappenas and the World Bank together with the Global Infrastructure Program through the Early Business Case document and will be refined into a Business Case outline as part of the process of cooperation between the government and business entities.” According to Koswara, the construction of mass public transportation is the best option to improve traffic and air conditions in Greater Bandung. The project plan is also in line with the vision and mission of the West Java Provincial Government, to accelerate growth, equitable distribution of environmental-based development and sustainable spatial planning through increased connectivity.

David Ingham, Senior Urban Transport Specialist Consultant at World Bank, stated:
“The success or failure of an LRT, or any other mass transit system, has little to do with the type of vehicle. It’s three things which I would really like to put in my suggestion for the West Java Province. Three aspects which from World Bank experience globally we should focus on. First thing to look at is the institutions, the system should be managed at local, not national level. Second issue is related to the funding, and then the third point is related to integration.”

To close the session, Julian Smith - Government and Infrastructure Advisor, PwC Indonesia said, “Every infrastructure project can benefit from a clear business case to explain why it is needed and how it can be taken forward. We are happy to be trusted by all parties to help support quality infrastructure development in Indonesia. This is in line with our goal to continue to build trust in society, help solve important problems, and deliver sustainable results. We hope that the business case and the training provided to the West Java Provincial Government can be applied in a structured manner to the Bandung Basin Metropolitan Area Mass Transit Project and future infrastructure projects.”