The Indian conglomerate GVK is ready to invest $500m in developing a new, greenfield international airport in Indonesia, making it the country’s first built with private finance.
GVK will create a joint venture with Indonesian state-owned airport operator Angkasa Pura I later this year to develop the airport in the province of Yogyakarta on the island of Java, reports Indonesia Investments.
The Program Development Objectives (PDO) for IIFD is to assist Indonesia in closing its large public infrastructure gap by supporting the flow of private capital into infrastructure development and improving the institutional, legal and regulatory framework to enhance the ability of private capital and public institutions to work together for infrastructure Development.
The Ministry of Finance has established Public Private Partnership (PPP) Unit named Directorate of Government Support and Infrastructure Financing Management, DGFRM – MOF in 2015 aiming to support infrastructure development in Indonesia through private participations. PPP Unit will work closely with the Government Contracting Agency (GCA) on the PPP project development and with other agencies on the provision of Government support.
The issuance of Indonesia's US$ 1.25 billion five-year sukuk (in March 2018) is the world’s first sovereign green sukuk. That issuance is part of US$ 3 billion issuance that Indonesia managed to implement when it developed the sukuk within two months with the assistance of the World Bank. It was issued under the Indonesia's Green Bond and Green Sukuk Framework.
