Annual Activity Report(From April 2017 to March 2018)

Asia PPP Institute (APPPI)TOYO University

Organization of Asia PPP Institute (APPPI)
Honorary Advisors
Dr. Mahathir bin Mohamad, the fourth Prime Minister of Malaysia
Dr. Yasuko Fukuda, the ninety-first Prime Minister of Japan

Director
Prof. Sam Tabuchi, Professor of Toyo University, Vice-chair of the Executive Board to
UN PPP Team of Specialists under UNECE (The United Nations Economic Commission
for Europe)
Senior Staff
Fumiyo Takai (from April 2017)

APPPI Members (2016)<In Japan>-

Kitakyusyu City, Fukuoka Prefecture-

Eight-Japan Engineering Consultants Inc.

-

Cova Japan Co. Ltd-

Toyama City, Toyama Prefecture<Overseas>-

Butuan City, the Philippines-

Iriga City, the Philippines2

Table of Contents

I.

Executive Summary ............................................................................................................ 4II.

APPPI Activities from April 2017 to March 2018 .............................................................. 5
1.

Regional Development Advisory Program (RDAP) /PPP Applicability Study ................... 5
1)

JICA Policy Proposal Research Program on PPP in Indonesia:................................... 5

2)

RDAP/ PPP Applicable Study Follow Up in Butuan City, the Philippines: .................. 113)

RDAP/PPP Applicability Study Follow Up in Cebu Province and Mandaue City, thePhilippines:........................................................................................................................... 13
2.

PPP short-term seminars ................................................................................................ 14
1)

PPP seminar for Ministry of Finance from South Africa in Otemachi, Japan.............. 14

2)

PPP seminar for the government officials from Qinghai, China in Otemachi, Japan . 15

3)

PPP seminar for the officials from IIGF from Indonesia in Otemachi, Japan.............. 16

3.

Other Activities ................................................................................................................. 17
1)

Attending the UNECE PPP Business Advisory Board Meetings ................................ 17

2)

Meeting between Dr. Mahathir bin Mohamad and Mr. Yasuko Fukuda, APPPI

Honorary Advisors: .............................................................................................................. 17
3)

PPP Applicability Site Visits to Cambodia and Nepal: ................................................. 18

4)

PPP Applicability Study on Agriculture in Indonesia: ................................................... 19

5)

Workshops for APPPI Members and Open Seminars: ............................................... 20

III. APPPI Activity Plan in 2018 and onward ........................................................................ 21
Appendix 1: Major Activities from September 2011 to March 2018 .................................... 22
Appendix 2: APPPI’s Network ................................................................................................ 24

3

I.

Executive Summary

Since its establishment in 2011, APPPI has been continuing to grow with faith in goingahead with the mission to be a global driver to promote a notion of PPP frameworks and
PPP-based business development across Asia. Its activities have been broadening steadily
among APPPI target countries. While this year marks the 6th year of its foundation, themain activities in 2017 represent as follows;

Two field visits to Indonesia as well as a PPP training and site visit in Tokyo wasconducted based on the three-year contract between Toyo University and JICA on
Policy Advisory Research Studies on PPP and toward the implementation of PPP
projects

RDAP/PPP Follow-up Studies were conducted in Butuan City, Cebu Province andMandaue City, the Philippines

A PPP Seminar was conducted for the Ministry of Finance from South Africa in
Otemachi, JapanA PPP Seminar was conducted for the government officials from Qinghai, China in
Otemachi, JapanA PPP Seminar was conducted for the officials from IIGF, Indonesia in Otemachi,
Japan



PPP Applicability Site Visits were conducted to Cambodia and Nepal

PPP Applicability Study on Agriculture was conducted in Indonesia

Workshops for APPPI members and Open Seminars were conducted

4

II.

APPPI Activities from April 2017 to March 2018

1. Regional Development Advisory Program (RDAP) /PPP Applicability Study
1) JICA Policy Proposal Research Program on PPP in Indonesia:<The 3rd Field Visit: September 3rd to 12th, 2017>
Based on the 3 year (2016-2019) contract between JICA and Toyo University on policy
proposal research on PPP in Indonesia, APPPI proposes on the policies and systems
to promote PPP in Indonesia at the local government level through identifying
bottlenecks and capacity enhancement of local government officials on PPP. We visited
Indonesia twice so far to assist PPP project planning at Sidoarjo Regency, particularly
for a public hospital construction project and consolidation plan of government offices.
In this regard, we conducted the 3rd field visit to Indonesia from 3rd to 12th September,2017. First we visited the Sidoarjo Regency to discuss the Krian hospital project. We
intended to find out about service and risk allocations between private and public
sectors. However, officers explained that everything was prepared under PT SMI, notthemselves. We found out that the health department of the Sidoarjo Regency wishedthat the medical staff were hired as government officers.
On the 2nd day, we visited several private companies. They showed an interest in the
PPP project in principal and some companies expressed positive opinions toward
participating in them. Nevertheless, private sectors expressed some criticism toward
the government. One of the major impediments was land acquisition. The long term,complex formalities were causing concerns for private investors. Another challenge
was that they needed to acquire different types of permission to construct something.
Besides these, distribution of interests, risk allocation, exit mechanism also caused
concerns in the case of the PPP project.
On the 3rd day, we visited the Chamber of Commerce in Surabaya. There weinterviewed an owner of a hospital who wished to construct another private hospital. In

5his case, he showed skepticism regarding PPP as it took longer in terms of time and a
lot of processes for initiating a project compared with general public work. In theafternoon, we visited the public work department of the Sidoarjo Regency to find out
about the details of the government office consolidation project. We introduced thepossibility of applying “soft PPP” method for the project. Based on this meeting, we
agreed to invite officers from Sidoarjo for PPP training and to do site visits in Japan.
On the 4th day, we visited PT SMI and IIGF in Jakarta to report about our meetings in
Sidoarjo. In addition, we visited KPPIP-FS to learn about their experiences withrehabilitation and the expansion plan of Medan public hospital. Though it is a brownfield
PPP project and situation is quite different, we obtained some fruitful insights from theirexperiences.
On the 5th day, we visited BAPPENAS, the Ministry of Finance and JICA Indonesia
office. In addition we visited Siloan private hospital, which is run by the Lippo group. It
runs a BPJS hospital for patients using the national insurance system called “BPJS”
next to their private hospital buildings, which focused on the patients that have private
medical insurance. This visit also gave us a different perspective of how to manage ahospital using BPJS while maximizing the capacity of private sectors.

< PPP Seminar & Site Visits in Tokyo Japan: December 12th to 15th, 2017>
Toyo University conducted a 4 day PPP seminar and site visits in Tokyo, Japan6

between 12th and 15th December 2017, based on the request from the Sidoarjo
Regency. A total of 18 participants from Indonesia (10 from the Sidoarjo Regency,
including the Regent, 8 from the Ministry of Finance, IIGF and PT SMI) participated in
the training.
On the 1st day, the project plans and current progress were shared regarding the Krian
hospital project and the government office consolidation project. Then lectures on
hospital PFI and PPP structuring were held. On the 2nd and 3rd day, participants
visited Toshima-ward local government office, Hiratsuka Hospital and Tama Medical
Hospital for PPP site visits. At Toshima-ward local government office, the participants
showed great interest in the selection process of a construction company and proposal
evaluation methods in the PPP projects. It seemed that the participants were surprisedat the amount of time and effort required for its preparation. Toshima-ward local
government utilized the money that they received from leasing the old city hall site torelocate and acquire a new city hall space.
Hiratsuka Hospital is a private hospital. However, it aims to serve the Hiratsuka
residents by putting significant effort in the emergency response services. In addition, it
was built as the core facility of a mixed-use development in the area. Its efforts of hiring
medical doctors and cooperating with neighboring commercial facilities provided many
insights to the participants.
Tama Medical Centre, build through the PFI-BTO method, is the 4th biggest hospital in
Japan. All the participants were surprised at the massive size of the hospital. The key
issue in this PPP hospital was to improve the management of the hospital andcommunication between public workers (medical staff) and private workers (co-medical
and other related staff). From the explanation by SPC, the participants fully understoodthat comprehensive hospital management was well organized by SPC under the close
cooperation with Tokyo Metropolitan Government by setting up a 24/7 calling center7

system for hospital staff, a monthly management monitoring system and committee
meetings. It also provided many insights on how to divide risk allocation and how toestablish an effective mechanism of penalties and incentives in its contracts.
On the last day, the participants discussed the project structures and way forward forthe above 2 projects, based on the findings from the lectures and site visits. Although
there are still many issues and challenges ahead, Toyo PPP School believed that thistraining could have been an eye opener for the main PPP players on how to deliver
effective PPP projects in Indonesia.

<The 4th Field Visit: February 28th to March 8th, 2017>
We conducted the 4th field visit to Indonesia from 18th to 24th February, 2018. First
we visited the Sidoarjo general hospital which is operational in the east side of the
Sidoarjo Regency. It is a class B public hospital. It is recognized as a “green hospital”,
which introduces the tradition of East Java and green nature as the hospital concept. It
obtained several awards from the Ministry of Health and other institutions as it hasdeveloped advanced activities as a public hospital, such as making MOUs with privatecompanies.
In public hospitals in Indonesia, the ratio of revenue from BPJS patients is regulated as
85% as of February 2018. The medical fee in BPJS is rated low, therefore the Sidoarjo
general hospital makes MOUs with several private companies to reduce the initial costs8

of introducing medical equipment and it introduces Toyota’s “Kaizen” program to
improve the business conditions. We observed that officers in the Sidoarjo general
hospital are proud of their work and activities. These kinds of initiatives could be also
introduced in the Kurian hospital project.
In the afternoon, we had discussions with Sidoarjo Public Works Department on thegovernment office consolidation project. In the meeting, the calculation background of
construction cost was shared. They also shared the information that the Sidoarjo
Regency plans to have a design competition and DB (Design-Build) competitive
bidding in the near future. It seemed to be difficult for the Sidoarjo Regency to makeone comprehensive PPP project by combining both, the reuse of the former
government offices and the construction of new government office under the current
laws and regulations. Therefore we recommended that the Sidoarjo Regency promote
the utilization of Public Real Estates (PRE) to gain the necessary income for thegovernment office consolidation project. Following this line, we also insisted theimportance that the information of all the government offices and land needs to bedisclosed to the private sector. So that the Sidoarjo Regency can analyze their
proposals from the viewpoints of publicness (benefiting the general public) andprofitability.
On the 2nd day, we visited ITS (Institut Teknologi Sepuluh) to find out about thecalculation background used in the FS report for the Kurian hospital project. As a result,
we felt confident in the construction costs. Regarding management costs, despite of thefact that medical revenue and expenditure is different, based on the class of hospitals
from A to D, it is calculated based on the average cost per patient use of medicines,
and inpatient and outpatient operations in principal. In Indonesia, the revenue frommedicines is the majority of the revenue. The ratio of human resource costs inmanagement costs is about 30~35% in general in Indonesia. However, human9resource costs are normally lower in public hospitals, compared with private hospitals,
as they obtain subsidies from the central government for the salaries of doctors andnurses. In the Kurian hospital project, SPC has to cover the cost for the entire humanresource costs, including doctors and nurses, the calculations in the FS report cannot
be applied.
In the afternoon on the 2nd day, we conducted a PPP seminar for Sidoarjo Members of
Parliament (MPs). In the seminar, we explained PPP outlines and hospital PFI
experiences in Japan. We also introduced PPP projects of the French Embassy inTokyo and Toshima-ward government office as examples for the government officeconsolidation projects. Six MPs who participated in the seminar understood the needsof applying PPP. They also expressed the necessity of publicness in PRE projects.
On the 3rd day, we observed the 3rd Kurian Hospital Project Market Sounding. There
were about 20 participants/companies from investors and financial institutions.
BAPPEDA (Regional body for planning and development) and SMI which is contracted
as a consultant by the Sidoarjo Regency made presentations and had Q&A sessions.
Some participants made a request for expanding the contract term up to 15 ~ 20 years,
instead of 10 years. Some also asked the question about the demand risk of incoming
number of patients and SMI responded that they expected the proposals are prepared
including the demand risk. At the end, the upcoming schedules were shared; tender
process starts from March 2018 and the successful bidder will be announced by theend of September 2018. Information confidentiality is enhanced when the tender
process is initiated. It might be difficult for us to make recommendations on the Kurian
hospital project itself. Therefore we would rather focus on policy recommendations forthe future PPP projects by following the Kurian hospital project proceedings. In theafternoon of the 3rd day, we conducted another PPP seminar for the Sidarjo Regency
staff. Initially, a presentation was prepared on the PPP regional platform from the side10

of Japanese experiences to both participants of the Kurian hospital project market
sounding and the Sidoarjo Regency staff. However, after observing the proceeding of
the market sounding, it was difficult to conduct such a presentation, therefore wechanged the subject and conducted a basic PPP seminar to the Sidoarjo Regency staff
only.
On the 4th and 5th day, we had follow up meetings with central government institutions,
including the Ministry of Finance, IIGF and SMI. In addition, we visited the Ministry ofHome Affairs to find out the AP (Availability Payment) approval scheme. In JICA
Indonesia office, we conducted a brief report on the 4th field trip and exchanged ideas
for future research.

2) RDAP/ PPP Applicable Study Follow Up in Butuan City, the Philippines:
APPPI visited Butuan City, the Philippines between September 25th and 28th 2017 tofollow up on the PPP projects which were created from RDAP (Regional Development
Advisory Program) /PPP Applicability Study in 2011. In the field visit, we visited 3
on-going projects (clean water supply project,
eel farming and rice milling along withpromotion of rice farming) and Asiga River
Hydro

Power

Project,

which

was

operationalized in early 2018.

11

The clean water supply project initiated its operation in June 2016. This is the first water
PPP project in the Philippines and treated water taken from the river is sold to the
Butuan City Water District Company. The biggest benefit from the project was a
reduction in complaints from customers regarding water quality, according to the
Butuan City Water District Company. In addition, water, which is equivalent to 1 monthconsumption of Butuan city, could be reserved at the water intake weir as a result of the
project. This could promote the sustainable supply of public water in Butuan.
Rice is the main food in the Philippines and the rice consumption per person is beyond
112kg per year. On the other hand, rice imports reached over 1 million tons, which was
equivalent to 20% of the total amount of rice consumed. Therefore the improvement ofself-efficiency rate of rice and economic improvement of farmers, one-third of which areliving under the poverty line, are imperative issues in the Philippines.
Eel farming started in 2015. The project is operated in a part of former shrimp farming
sites, which were abandoned due to the spread of diseases. It also aims to establish a
local industry, using young eels available in inshore around Mindanao Island. As of
September 2017, the processing facility was not yet in operation but SPC was seeking
markets for the processed eels in Manila, Taiwan, Japan and elsewhere.
As of September 2017, the construction of Asiga River Hydro Power Generation Plant
was still on-going. Once it starts operation, the plant has the capacity to generate 8MWof electricity and will sell the electricity to the regional power distribution company. In
Caraga region, an additional 2 hydro power plants, a biomass power plant and a wind
power plant are planned, beside the Asiga river hydro power project. Once all thepower generation plants are operationalized, the Caraga region will have the capacityof generating 174MW of electricity, which will be about 40% of supply demands in the
Caraga region in 2020.

12

3) RDAP/PPP Applicability Study Follow Up in Cebu Province and Mandaue City, thePhilippines:
We visited Cebu Province and Mandaue City on March 12, 2018 to follow up RDAP/
PPP Applicability Study, which was conducted in 2015 (Cebu Province) and in 2012
(Maudaue City).
In Cebu Province, we discussed the on-going projects and its challenges with theGovernor and several provincial staff. Regarding the transportation issues, a 3rd bridge
between the airport (Mactan Island) and Cebu Island has been under construction anda 4th bridge is also planned to reduce the traffic. Once 4 bridges are constructed, theexpansion of the 1st bridge is planned. In addition, Cebu Province received thepermission from NEDA (The National Economic and Development Authority) tointroduce MRT (Mass Rapid Transit) system.
In order to respond to the garbage problem, Cebu Province will make another landfillsite as a PPP project. We suggested in creating power generation from the waste alongwith the PPP project, because Cebu Province has a huge population. The Cebu
Governor replied that they will first conduct a solid waste management project thenmove toward the power generation project.
It became mandatory for local governments in the Philippines to prepare a contingency
plan against disasters. We praised the progress and recommended that Cebu, which islocated in the center of the country, should accommodate national training and a
response center against disasters. As for PPP project planning, local governments
receive many USP (Un Solicited Proposals)
but officers have difficulties on how toevaluatetheproposals

standards

and

the

without

methods

topropermakecomparisons. We mentioned that we plan to13

conduct training on VFM (Value for Money) for the local government officials inIndonesia and this kind of training could help the officers evaluate received USPs. The
officers in Cebu Province showed an interest thus we agreed to coordinate together to
conduct VFM training in Cebu in the future as well.
In Mandaue City, we had a meeting with the Planning & City Development Department.
This was the first follow up visit since we conducted RDAP/PPP applicability study in2012. Thus most of the staff, including the City Mayor had been replaced. After
introducing ourselves, Mandaue City explained that they have been conducting 11
proposals (on the issues of transportation, garbage, drainage and the proposals fortourism and increasing tax revenue) out of 17, which were proposed in the RDAP reportin 2012. We were happy to hear their progress and agreed to continue ourcommunication to share information including training opportunities in the future.

2. PPP short-term seminars
1) PPP seminar for the Ministry of Finance from South Africa in Otemachi, Japan in May
2017
APPPI conducted a PPP seminar for 8 officials of the Ministry of Finance from South
Africa, who visited Japan under a technical cooperation project of JICA. In the seminar,
Prof. Tabuchi and Associate Prof. Namba from APPPI explained the checklists for PPP
project implementation, including project appraisals, PPP policy and framework, needs
assessment and option analysis, while introducing actual examples. The participants
raised the issues on the low response from private sectors towards RFI (Request for
Information) and how to communicate with private sectors. The professors insisted theimportance of setting incentives for private sectors in each project and introduced “theguide for dialogues between the public and private sectors and its selection process”
published in 2015, as well as PPP platforms to learn and promote PPP as the14corroborative effort between the public and private sectors in Japan.
The professors also explained about the history of railway networks in Tokyo. In 1950s,
the government of Japan took the initiative in setting up core railway lines in Tokyo as apublic project. Later private companies established several interconnecting railway
lines from the core lines, together with the development of residential areas as well as
industrial areas along the railway lines. From this experience, the professors explained
the importance of Transit Oriented Development (TOD) and the need for establishingcomprehensive development plans at national and regional levels.
In addition, the professors indicated that the cheapest option is not necessarily the best
option and the indicators for VFM (Value for Money) involve not only the price issue but
also other factors, by describing an example of the administrative building in Shiwa
town, Iwate prefecture, where the local government decided to utilize local timbers
despite the high costs. In the later part of the seminar, the participants presented thecurrent situation of PPP projects in South
Africa;Tembisadevelopment

andGautrain (high speed train) development
plans. An active discussion took place
based on what they learned from theseminar.

2) PPP seminar for the government officials from Qinghai, China in Otemachi, Japan in
July 2017
On 11th of July, 2017, APPPI conducted a PPP seminar for 18 local government officials
from Qinghai, China, who visited Japan to study about private fund management inpublic projects. The seminar was organized based on the request from theJapan-China Society. In the seminar, Associate Prof. Namba explained PPP

15

classifications, PPP implementation processes and systems in Japan. She further
clarified “Public Service Type” and “Utilization of Public Assets Type” from PPPclassifications through introducing actual case studies. Then Prof. Tabuchi introduced
some case studies, such as Shiwa town, the Belgian Embassy in Tokyo and Yotoku
Dormitory of Nara Prefecture to explain some other PPP methods. In addition, he
described PPP institutional framework in the US, UK and France.
The seminar was about 2 hours only so we didn’t have enough time for a Q&A session.
However, APPPI was able to deliver PPP
basic principles and the fundamental
concept. We hoped this seminar introduced
some

kinds

of

conceptsforthedevelopment of PPP systems and projects
in Qinghai, China.

3) PPP seminar for the officials from IIGF from Indonesia in Otemachi, Japan in July 2017
On 27th of July, 2017, APPPI conducted a PPP seminar for the officers of IIGF
(Indonesia Infrastructure Guarantee Fund). In the PPP outline, we explained PPP
appraisal, feasibility check list and PPP structuring. We showed the examples of PPP
structures in electricity and school construction projects. Japan has only a few
examples for water sector PPP. However, we explained possible PPP schemes in thewater sector and shared 2 water PPP cases
in Japan; comprehensive outsourcing in
Sakai City, Fukui Prefecture and DBO(Design

Build

Operate)casein

Aizuwakamatsu City, Fukushima Prefecture.
Inaddition,

wesharedourpolicy16

recommendation research in Indonesia together with its challenges and referencing
examples of PPP case studies.

3. Other Activities
1) Attending the UNECE PPP Business Advisory Board Meetings :APPPI gave a presentation at the UN PPP Forum in May 2017 in Hong Kong on
on-going PPP projects which were initiated from RDAP / PPP Applicability Study in2011 in Butuan, the Philippines. In October 2017, we participated in the UNECE
Business Advisory Board Meeting in Geneva. We are continuing to raise our presencein the UN to promote PPP initiatives over the world.

2) Meeting between Dr. Mahathir bin Mohamad and Mr. Yasuko Fukuda, APPPI Honorary
Advisors:
On June 5th 2017, Dr. Mahathir、APPPI Honorary Advisor, had a meeting with Dr.
Yasuo Fukuda, former Prime Minister of Japan, who inaugurated as an APPPI
honorary advisor in succession of Dr. Masajyuro Shiokawa, who was passed away in2015, under the coordination of Mr. Shinji Fukukawa, Chairman of Toyo University. At
the end of the meeting, they signed a new APPPI board as shown in the picture below.
APPPI continues working under this new structure.
On the same day, Dr. Mahathir had a discussion with students from the Faculty of
Global Innovation as well as the
PPP Graduate School of Toyo
University.

In

the

discussion,

students

asked

questionsregarding various topics, including
economic issues, such as Islamic

17

Finance, the sale of Proton Motors, ethnic and cultural issues, political and international
issues, such as corruption, inequality, capacity of national leaders, and international
cooperation toward conflict resolution. Dr. Mahathir replied to each question sincerely
and honestly based on his experiences and knowledge.
For example, on the question regarding the capacity of a national leader, Dr. Mahathir
explained the importance of learning various elements, especially on economy andfinance as a leader and also mentioned that the leaders should listen sincerely to thevoices of experts.

3) PPP Applicability Site Visits to Cambodia and Nepal:
Between 3rd and 7th of November, 2017, APPPI visited Cambodia to conduct a PPP
applicability study there. In Phnom Penh, we received the information about the plan of a tollroad construction between Phnom Penh and Bavet from the Embassy of Japan, then wevisited bridges which were constructed with the support from the Japanese government. In
Siem Reap, we visited Angkor monuments and conducted a PPP applicability study on
installing ropeways under the PPP scheme to improve the movement and comfort oftravelers as well as to secure the funding for the world heritage conservation.
Between 14th and 18th of March, 2018, we visited Nepal to have meetings on the possibilityof hydro power PPP projects. Firstly, we visited Upper Trishiuli 3A hydro power project team.
This is a project financed by a Chinese Bank in 2010 and it aims to produce 60 MW ofelectricity. Secondly, we visited the Nepal Electricity Authority (NEA) to find out about thecurrent electricity situation and future plans in Nepal. According to NEA, Nepal imports 50%
of its electricity from India in the dry season and the government plans to invest to generate
power up to 10,000 MW in 10 years. The biggest issue is land acquisition but they highly
welcome foreign investments from the electricity sector.
On the 2nd day, we visited NMB Bank, the biggest private bank in Nepal. NMB bank has a18

hydro power department with technical specialists to promote hydro power investment. The
bank itself is highly motivated to encourage foreign investment in Nepal. In the afternoon,
we visited the Department of Electricity Development (DOED). The DOED offers “one stop”
service on electricity investment for foreign investors. According to the DOED, multiple
power generation plants are planned but many projects face the lack of funds, technicalissues and/or challenges in land acquisition. Lastly, we visited JICA Nepal office. JICA
supports middle scale hydro power generation plants (capacity of 100~300MW) for thesustainable distribution of electricity without blackouts throughout the year. Currently they
support 3 projects; the Kulekhani projects (I and II) and the Kaligandaki “A” project. In
addition, JICA supported to develop a Nationwide Master Plan on storage type hydro power
generation in 2014. They wish to support PPP schemes in hydro power generation projects.

4) PPP Applicability Study on Agriculture in Indonesia:

Between 24th and 28th of February 2018, we visited 10 institutions/ individuals for a PPP
applicability study on agriculture in Indonesia. In Indonesia, the concentration of people/ services to the capital, Jakarta is very large. Despite of the massive land area inIndonesia, 70% of its population lives in Java Island and the economic gap between
Java Island and the rest of the country has been increasing. In addition, there are 34
cabinet ministers in Indonesia and it seems that the coordination among different
ministries is quite difficult. For instance, STA (Sub Terminal Agribisnis) initiative under
the Ministry of Agriculture is independently operated and doesn’t cooperate with the
Ministry of Transport nor Trade. Since 2014, the current government focuses on
agriculture development and doubled the budget to the Ministry of Agriculture. It is
supposing to maximize the government support by providing subsidies andmachineries using government funds, rather than considering the cooperation withprivate sectors. Most of the farmers are small scale farmers owing less than 1 ha of19

land and they depend on government support excessively. When a big natural disasteroccurs, they rather wait for the support from the government, thus the priority of being
insured under agricultural insurance schemes is low among small scale farmers.
Therefore the cooperation with local banks, seeding and fertilizer companies is rather
important for the popularization of agricultural insurance schemes. Agriculture has apotential to promote the economic development in rural areas and minimize thegrowing economic gaps. However, it could be difficult for the Ministry of Agriculture topromote PPP schemes in agriculture in Indonesia as of now. As the Ministry of Tradeand the Meteorological Agency (BMKG) were rather positive in PPP, we will continue
conducting research in the future.

5) Workshops for APPPI Members and Open Seminars:
We conducted 2 workshops for APPPI members in May and October 2017 and 2 open
seminars in July 2017 and January 2018. The 1st open seminar was on the economic
trend in Asian countries and the feedback from the 23rd International Conference on the
Future of Asia. The 2nd open seminar was held as a part of Toyo PPP school open
lectures. In the seminar, Prof. Tabuchi explained his observations on the “one belt one
road” initiative of China through their increasing presence in the UNECE PPP Advisory
Board Meeting. We also introduced the APPPI outline and our research activities inIndonesia. We will continue conducting these seminars with hot topics in PPP in Asia.

20

III.

APPPI Activity Plan in 2018 and onward

The table below shows activity plans from April 2018 to March 2019.

Date

APPPI Research/Study

APPPI Activity

May 2017- JICA Policy Recommendation
Research in Indonesia- the UNECE Business Advisory Board
Meeting in Geneva

June- APPPI Open Seminar

July- Workshop for APPPI Members

August- JICA Policy Recommendation
Research in Indonesia- PPP seminar for the local government
officials in Indonesia

September- PPP Applicability Study fieldvisit to China- PPP seminar for the government
officials in Cebu, the Philippines

October- PPP Applicability Study in
Waste Water Sector- International PPP Forum

November- the UNECE Business Advisory Board
Meeting in Geneva

January
2018- APPPI Open Seminar

February- JICA Policy Recommendation
Research in Indonesia- Workshop for APPPI Members

March- Final report for JICA Policy
Recommendation Researchin Indonesia- Development of Annual Report21

Appendix 1: Major Activities from September 2011 to March 2018
Date

APPPI Activity
2011

September

RDAP/PPP Applicability Study in Butuan City, the Philippines

November- Establishment of APPPI- Dr. Mahathir and Chancellor Shiokawa inaugurated as APPPI honorable
advisors
2012

January

PPP seminar held in International Islamic University Malaysia (IIUM) andKarjasama Awam Swasta (UKAS) in Malaysia

February

Prof. Tabuchi named Vice Chair of the Executive Board to UN PPP Team ofSpecialists

March

PPP seminar held in Butuan, the Philippnes

August

RDAP/PPP Applicability Study in the Republic of Kyrgyz

September

RDAP/PPP Applicability Study in Mandaue City, the Philippines

November

APPPI First Anniversary Event held
2013

February

PPP seminar held in Manila, the Philippines

April

PPP research conducted for rehabilitation of Palais des Nation (PdN)

September

PPP seminars held in the MPI and NUCE in Hanoi, Vietnam

November

PPP seminars held in Bangdong and Surabaya, Indonesia
2014

February

TOYO PPP held International Academic Competition for TOUHOKU recovery

May- Presentation at 1st Asia Pacific Conference on PPP at Incheon in Korea- Presentation of Report for rehabilitation of PdN at UN in Geneva

September

PPP seminar held in Japan for government officials from Republic of Kyrgyz
2015

February

RDAP/PPP Applicability Study in Province of Cebu, the Philippines

22

March

PPP seminar held in Hanoi, Vietnam (MPI and NUCE)

August

RDAP/PPP Applicability Study in Surigao del Norte, the Philippines
2016

February- RDAP/PPP Applicability Study in State of Kedah, Malaysia- PPP seminar held in Ho Chi Minh, Vietnam

April

Contracted with JICA on Policy Proposal Research Program in Indonesia(2016 – 2019)May

PPP seminar held for the officials of the Ministry of Finance, South Africa

June

RDAP/PPP Applicability Study findings reported to State of Kedah officials at
the 34th JAMECA-MAJECA Joint Conference

August- Follow up visit of RDAP/PPP Applicability Study in Butuan, the Philippines- The 1st field visit to Indonesia (Surabaya and Sidoarjo) on JICA Policy
Proposal Research Program2017

February

PPP seminar held in Pretoria and Cape Town, South Africa

March- RDAP/PPP Applicability Study in Iriga City, the Philippines- The 2nd field visit to Indonesia (Sidoarjo and Flores) on JICA Policy Proposal
Research Program

June- Meeting between Dr. Mahathir bin Mohamad and Mr. Yasuko Fukuda, APPPI
Honorary Advisors

September- The 3rd field visit to Indonesia on JICA Policy Proposal Research Program- Follow up visit of RDAP/PPP Applicability Study in Butuan, the Philippines

December- PPP training and site visits for the government officials from Indonesia in
Japan
2018

February- The 4th field visit to Indonesia on JICA Policy Proposal Research Program

March- Follow up visit of RDAP/PPP Applicability Study in Cebu province andMandaue city, the Philippines

23Appendix 2: APPPI’s Network24