During late 2024 and through 2025 DFAT anticipates conducting new tendering opportunities through two-step procurements in relation to the Indonesia program's economic governance, climate and infrastructure portfolio. The programs in the portfolio are due to end between late 2025 and mid-2026 and design processes have begun for successor programs. The Indonesia program is seeking to ensure these programs work together in a complementary way to support Indonesia's economic growth and development goals over the next decade.

Opportunity for Industry Engagement

DFAT will be holding an Industry Engagement Briefing in relation to the Indonesia Program and the relevant tendering opportunities.

Interested parties are invited to attend an Industry Engagement Briefing on:

Date: Tuesday, 3 December 2024
Time: 11 am Jakarta time / 3 pm AEDT

Meeting details

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Details of the current portfolio

Prospera (current phase)

The Australia Indonesia Partnership for Economic Development (Prospera) is a $259m program (Mar 2018 – Feb 2026) that works with around 30 Indonesian government agencies and provides evidence on which to base policy to support private sector development, safeguard macroeconomic stability, and improve government performance. The program brings together advisers with extensive knowledge of Indonesia, those who have experience in emerging markets, and partnerships with around 20 Australian Government agencies.

More information about Prospera

Katalis (current phase)

The IA-CEPA Economic Cooperation Program (Katalis) is a $40 million program (July 2021 – Dec 2025) designed to maximise the benefits of Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA) by improving market access, increasing two-way trade and investment, and supporting inclusive economic growth in Indonesia. Katalis works closely with the business communities in Australia and Indonesia to foster increased two-way trade and investment.

• More information about IA-CEPA ECP Katalis
• Mid-Term Review of Indonesia-Australia Comprehensive Economic Partnership Agreement – Economic Cooperation Program ’Katalis’

KIAT (current phase)

The Indonesia Australia Partnership for Infrastructure (KIAT) is a $300 million, ten-year (2017 – 2026) facility to support sustainable and inclusive economic growth through improved access to infrastructure for all. KIAT provides support in the areas of policy and regulatory reform, project preparation, financing and delivery, to encourage greater investment in infrastructure.

More information about KIAT

KINETIK

The Australia-Indonesia Climate and Infrastructure Partnership (KINETIK, $200 million, 2022-27) aims to deepen bilateral cooperation to reduce emissions and promote energy systems and industries to accelerate the net zero transition.

KINETIK has three pillars:

• Encouraging increased investment in the energy transition by supporting Indonesia-led policy and regulatory reform
• Unlocking finance in climate-focused small and medium-sized enterprises through Australian Development Investments (ADI) and incentivising investment in larger scale green infrastructure projects through the Private Infrastructure Development Group (PIDG)
• Promoting a just transition in which women, people with disabilities and the marginalised participate in and benefit from the shift to net zero.

Anticipated opportunities to be released to the market

Prospera 2.0

• Request for Expression of Interest (RFEOI) anticipated release early Dec 2024
• Request for Tender (RFT) anticipated release of July 2025
• Anticipated procurement value approximately A$180 million for 5 years with an option for extension

The proposed goal of the program is to support Indonesia's economic transformation, enabling greater investment, including from Australia, and to support stronger, more inclusive economic growth in-line with Indonesia's ambition to reach high-income status by 2045. End of program outcomes for Prospera 2.0 are proposed across three key areas and with a 10-year horizon. These will be refined through the design process.

• Economic transformation: macroeconomic, financial sector, budget, and revenue policies, with a focus on gender and disability in policy outcomes.
• Private sector transformation: micro-economic, trade and investment, competition and innovation, labour market and digital economy, focusing on female labour force participation.
• Energy and climate transformation, including issues of a just transition.

The Managing Contractor will develop and implement a strong program strategy but also retain the flexibility of a facility model. The overall implementation strategy for Prospera 2.0 will include a clear approach to harnessing the collaboration opportunities between technical assistance and APS partners. The Managing Contractor will develop effective coordination mechanisms with Katalis 2.0 and a clear approach to harnessing the collaboration opportunities between technical assistance in both Katalis and Prospera components.

• Investment concept Note - New Indonesia Economic Governance Investment [PDF 312 KB]
• Investment concept Note - New Indonesia Economic Governance Investment [DOCX 260 KB]

Katalis 2.0

• RFEOI anticipated to be released early December 2024
• RFT anticipated to be released July 2025
• Anticipated procurement value approximately A$40 million for 5 years with an option for extension

Katalis 2.0 and Prospera 2.0 are being designed to closely align and enable greater synergy between the work Prospera does on policy reform to support Indonesia's economic growth and Katalis' goal to improve market access, increase two-way trade and investment, and enable inclusive economic growth under IA-CEPA. The Managing Contractor will develop effective coordination mechanisms with Prospera 2.0 and a clear approach to harnessing the collaboration opportunities between technical assistance in both Katalis and Prospera components. It will work closely with Government of Indonesia and Government of Australia (including to support IA-CEPA sub-committees), strategically engage relevant businesses from both countries, and collaborate with relevant programs funded by DFAT and other donors.

New infrastructure and climate financing investment

• RFEOI anticipated to be released late January 2025
• RFT anticipated to be released August 2025
• Procurement value: approximately A$200 million for 5 years with an option of extension

This investment will support Indonesia's sustainable and inclusive economic transformation by mobilising high quality investment in infrastructure and supporting Indonesia's just transition to net-zero emissions. This will include leveraging private sector financing where feasible and supporting policy and regulatory reform to help build an environment conducive to private sector investment in inclusive infrastructure.

End of program outcomes for the investment are proposed as follows:

• Improved GOI policy and regulatory framework for inclusive infrastructure financing, delivery and management.
• High quality inclusive infrastructure projects are identified, prepared and managed for financing by the private sector, multilateral development banks, DFAT's blended finance instruments, development partners and the Government of Indonesia.
• Indonesia benefits from increased access to diverse sources of high-quality finance to meet its emissions reductions targets and respond to climate change.

The Managing Contractor will implement a program strategy while also retaining the flexibility of a facility model. It will develop an overall implementation strategy, including a clear approach linking technical assistance and planning with funding and financing opportunities.

• Investment Concept Note: Indonesia Infrastructure and Climate Finance Program [PDF 425 KB]
• Investment Concept Note: Indonesia Infrastructure and Climate Finance Program [DOCX 128 KB]

Disclaimer: This information is provided for planning purposes only and it does not represent solicitation or constitute a request for proposal, nor is it a commitment to purchase or tender for any described services. The scale, scope and focus of any proposed program may change at any time and is subject to internal DFAT approval.