Government of Indonesia has long recognized the vital role of basic infrastructure in enabling and supporting sustained and rapid economic development, and in improving public welfare and opportunities for the poor. The Governments determination to accelerate infrastructure development is one of the steps taken to realize the expected economic growth. Through infrastructure development, the Government is optimistic to be able to open millions of new employment as well as eradicate poverty by providing access to basic infrastructure desperately needed by poor people. Infrastructure is also essential to determine our level of competitiveness against other nations. Multiplier effects of infrastructure development are expected to touch every elementsocial, culture, politic, and even defense-securityof our life as a nation.

Infrastructure development needs to have pattern and direction that are able to provide maximum benefit. Hence, from this point, the role of infrastructure development policies becomes the direction guideline to perform infrastructure provision activities in efficient, direct and responsive to change, global and regional, fashions. Infrastructure development policies, thus, have to be formed in light of the creation of a balance among various interests, including that of the public, users and operator.

To realize the desired infrastructure development, the Government has launched a policy package that consists of more than 150 action plans to develop various types of infrastructure. The Governments limited fund will be concentrated in developing the basic needs such as rural infrastructure through public service obligation. On the other hand, commercially viable and private cooperation feasible infrastructure will be developed through public-private partnership (PPP) regulation.

On the institutional front, government has strengthened the role of KKPPI (National Committee for the Acceleration of Infrastructure Provision) as the organization to undertake coordination responsibility. The KKPPI was established under Presidential Regulation (Perpres No. 42 / 2005) should play major role in carry out infrastructure reform agenda. The committee has been given mandate by the president to issue a decision on policy related to the acceleration of infrastructure provision in Indonesia.

Organization Structure of KKPI

Chairperson:
State Coordinating Minister for Economic Affairs

Executive Chairperson:
State Minister for National Development Planning/Head of National Development Planning Board (BAPPPENAS)

Secretary I:
Deputy Minister for Infrastructure and Regional Development, Coordinating Ministry for Economic Affairs

Secretary II:
Deputy Minister for Infrastructure, Bappenas

Members:

1. Minister of Home Affairs
2. Minister of Finance
3. Minister of Energy and Natural Resources
4. Minister of Public Works
5. Minister of Transportation
6. Minister of Information and Communication
7. State Minister of State-Owned Enterprise
8. Secretary of the Cabinet

The tasks of the Committee are:

1. Formulate the coordination strategies to accelerate infrastructure provision
2. Coordinate the integration of planning and programs and monitor the implementation of policies
3. Formulate the implementation of public service obligation (PSO) in the acceleration of infrastructure provision
4. Determine efforts required to solve various issues relating to infrastructure provision.

The scope of Infrastructure under the responsibility of the Committee:

1. Transportation infrastructure
2. Road infrastructure
3. Water infrastructure
4. Water supply and sanitation infrastructure
5. Telematics infrastructure
6. Electricity infrastructure
7. Oil and gas distribution infrastructure