Our Experience
CLIENT’S SITUATION:
PT Indonesia Infrastructure Finance (IIF) is a private non-bank financial institution under the Ministry of Finance of the Republic of Indonesia, Regulation (PMK) No. 100/2009, professionally managed, with a focus on investing in commercially feasible infrastructure projects. The establishment of IIF is a key element of strategic development by Government of Indonesia and development partners among international financial institutions to address the constraints on the flow of private investment in infrastructure.
ACTIONS:
Tusk was reappointed by the company’s shareholders as interim managers due to the departure of the CEO and Tusk was mandated to undertake all necessary work to enable the company to drawdown US$ 360 million in debt and equity.
RESULTS:
During the interim management period, Tusk developed various options on the organizational structure of the company and provided input and detail analysis of the Standard Operating Procedures, key management structure and staff remuneration strategy. Moreover, Tusk team successfully structured the drawdown of the first US$10 million in equity funding and obtained the Non-Bank Finance company license from the BAPEPAM.
CLIENT’S SITUATION:
In 2010, Government of Indonesia established Metropolitan Priority Area (MPA) for Investment and Industry in JABODETABEK (Jakarta, Bogor, Depok, Tangerang and Bekasi) to transform the area to be more attractive and suitable for direct investment and industrial development by accelerating infrastructure development and creating a top-level investment climate in the ASEAN region. In achieving these, GOI via Coordinating Ministry of Economic Affairs (CMEA) needs implementation support to deliver infrastructure projects and facilitate problem resolution on the ground.
ACTIONS:
Tusk supports the acceleration of MPA projects through technical assistance, and includes components of strategic planning and hands-on implementation support. Throughout the assistance process, it was evident that strategic planning is needed to produce debottlenecking action plans, while implementation support is essential to ensure the delivery of debottlenecking efforts and successful project coordination for MPA. As part of the implementation support, Tusk also codified the process to ensure that all important aspects of project acceleration are well captured for future replication. In parallel, Tusk closely involved key stakeholders during the strategy-making process and debottlenecking efforts.
RESULTS:
Tusk’s assistance to MPA program has resulted in the facilitation of problem resolution for port and oil & gas conflict as well as supporting the road and railway alignment determination for the development of a seaport project; analysis on the overall air transportation system for Jakarta and its surrounding in relation to the development of a new international airport; accelerated process of land acquisition and funding resolution for the construction of Java-Sumatra interconnection transmission line; managing project and funding preparation for the development of the sewerage system in Jakarta; as well as streamlining the funding arrangement and land acquisition process for Mass Rapid Transit (MRT) Jakarta. The program assistance for CMEA is still ongoing in keeping with the dynamic natures of infrastructure projects.
CLIENT’S SITUATION:
In 2011, Government of Indonesia (GOI) established The Masterplan for Acceleration and Expansion of Indonesia Economic Development (MP3EI) 2011 – 2025, with the aim to achieve Indonesia Vision 2025 “to create a self-sufficient, advance, just, and prosperous Indonesia”. Yet, the progress of 56 priority projects was lackluster and hence, at the risk of unable to reach the groundbreaking targets. To accelerate the infrastructure delivery, GOI via Coordinating Ministry of Economic Affairs (CMEA) needed strategic and implementation support.
ACTIONS:
Tusk supported the acceleration of MP3EI projects through debottlenecking of 56 priority projects, which cover issues related with land acquisition, permit issuance, funding determination, etc. In developing the debottlenecking strategy, Tusk undertook multi-level analysis including regulatory, financial, risk management, stakeholder, benchmarking, etc. As part of the implementation support, Tusk also codified the debottlenecking process and lessons learned to ensure the same success can be replicated in future projects. Other than the implementation support, Tusk formulated and executed strategic policy recommendations or guidelines related to key permits, spatial planning, land acquisition and funding mechanism. In parallel, Tusk closely involved key stakeholders (Ministry of Public Works, Ministry of Finance, Ministry of Transportation, National Development Planning Agency, National Land Agency and SOEs) during the strategy-making process and debottlenecking effort.
RESULTS:
Tusk’s assistance to MP3EI program has resulted in the determination of government funding for toll road projects, unlocking the 1-year status quo and hence, remain on schedule to reach the groundbreaking targets; publication of two investor guidelines in relation to accelerated approval process for forest-related permits: (1) dispute settlement mechanisms in forest areas and (2) alteration of forest status from Forest Area to Area for Other Uses (APL); development of technical documents for the effective and efficient implementation of land acquisition, spatial planning and Viability Gap Funding; as well as formulation of recommendations on legal policies including state loss and legislation process.
CLIENT’S SITUATION:
In 2011, Government of Indonesia (GOI) established The Masterplan for Acceleration and Expansion of Indonesia Economic Development (MP3EI) 2011 – 2025, with the aim to achieve Indonesia Vision 2025 “to create a self-sufficient, advance, just, and prosperous Indonesia”. To accelerate the infrastructure delivery, GOI via Coordinating Ministry of Economic Affairs (CMEA) needed strategic and implementation support.
ACTIONS:
As it was evident that the lack of concentrated efforts in project management had resulted in no tangible milestones, Tusk developed prioritization framework that took into accounts the strategic importance, readiness level, etc. The objective was to identify projects that require immediate attention and execution from the Government. In addition, Tusk conducted various analyses in funding gap, the performance of State-Owned-Enterprises as well as legal policies. In relation to the implementation support, Tusk also developed the Standard Operating Procedures (SOP) for debottlenecking effort, of which the adherence to the framework has successfully resolve issues for both public and private projects. Lastly, as Tusk recognized the importance of having an agency with a mandate to accelerate infrastructure projects, it developed the strategic and technical aspects for the operationalization of such agency.
RESULTS:
Tusk’s assistance to MP3EI program has resulted in the issuance of priority Investment Focused Area (Kawasan Perhatian Investasi – KPI) for 2012 and 2013 as well as a definitive list of 40 priority projects; development of Standard Operating Procedures (SOP) for debottlenecking effort, which can be applied across all projects; acceleration and realization of projects that were intended for groundbreaking in 2012; as well as revitalization of Policy Committee for the Acceleration of Infrastructure Provision (KKPPI – now named as KPPIP)
CLIENT’S SITUATION:
Indonesia infrastructure faces multiple issues such as poor project preparation and delay in land acquisition. In 2001, the Committee for Acceleration of Infrastructure Delivery (KKPPI) was developed. Nevertheless, KKPPI was ineffective due to its limited authority for coordination, minimum involvement in implementation, and lack of capacities. As the solution, Committee for Priority Infrastructure Delivery (Komite Percepatan Penyediaan Infrastruktur Prioritas/ KPPIP) was established via Presidential Regulation No. 75/2014 to focus on the preparation and delivery of infrastructure projects which are of national priorities.
ACTIONS:
Tusk Advisory was involved since the initiation of KPPIP and the development of the Presidential Regulation on Acceleration of Priority Infrastructure Delivery (Presidential Regulation No. 75/2014). Since then, Tusk has had significant roles in the establishment of KPPIP institution, such as creations of organization structure and standard operating procedure, development of Pre-Feasibility Study quality guidelines, development of criteria for determining priority projects, ensuring stakeholders’ inclusivity in the development of action plans to ensure timely delivery of priority projects, and managing the debottlenecking efforts.
RESULTS:
Tusk has successfully supported CMEA in obtaining the ratification for KPPIP’s Presidential Regulation in 2014. In addition, Tusk has been supporting KPPIP in stakeholders’ coordination meetings which resulted to the Priority Project List for 2015 consisting of 22 priority projects across various infrastructure sectors. On Tusk PMO roles, Tusk is developing all of the required quality guidelines and standard operating procedures that are currently adopted by KPPIP. Moreover, Tusk is successfully coordinating the debottlenecking efforts for several priority infrastructure projects, resulted in accelerated delivery of those projects.