CoST Country Study - Indonesia

CoST Country Study – Indonesia

Indonesia plans to become a great economic power for infrastructure development in various sectors. Moreover, transparency and accountability have emerged over the past decade as key to address both developmental failures and democratic deficits. A set of rules related to transparency and openness has been developed by the Indonesian government. Its starting point is from the basic principle of the 1945 Constitution, which states that every person has the right to communicate and obtain information. Accordingly, the law on construction services also states that one of the basic principles of construction delivery is openness. In 2008, the government passed a law on public information disclosure.

The CoST Infrastructure Data Standard (IDS) outlines 40 data points to be disclosed by the institutions responsible for public infrastructure projects. When compared to the IDS, current legislation and regulations in Indonesia still lack details on what documents should be prepared and disclosed for each project. The Indonesian government has made positive moves by ensuring greater information about state activities is available in the public domain. However, there is still room for improvement. Therefore, there is a need for stronger transparency standards in public infrastructure, covering the entire project life cycle.

In partnership with the UK Government’s Foreign and Commonwealth Office (FCO), CoST is conducting four country studies in Indonesia, Malaysia, Thailand, and Vietnam to assess the applicability and viability of the initiative in each country. The purpose of this study is to understand the:
 Key characteristics of public infrastructure investment and governance in Indonesia;
 Public infrastructure transparency policy and practice (baseline) in Indonesia; and
 Scope for improving public infrastructure transparency and accountability, specifically the CoST value-add and potential challenges/barriers to implementation, in Indonesia.