Public-Private Partnerships: an International Development vis a vis Indonesia Experience
For more than two decades, Public Private Partnerships<br />(PPP) had developed worldwide as an instrument<br />to procure public infrastructure where government<br />funds are limited. This practice supports the<br />covergent theory of the public and private sector.<br /...
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| Format: | Article |
| Language: | English |
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Universitas Muhammadiyah Yogyakarta
2014-08-01
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| Series: | Jurnal Studi Pemerintahan |
| Online Access: | https://journal.umy.ac.id/index.php/jsp/article/view/10 |
| Summary: | For more than two decades, Public Private Partnerships<br />(PPP) had developed worldwide as an instrument<br />to procure public infrastructure where government<br />funds are limited. This practice supports the<br />covergent theory of the public and private sector.<br />Indonesia experience with PPP follows most of what<br />had been done by countries overseas with some<br />deviations. The main reasons for going for PPP for<br />Indonesia government is to fill the gap in finance<br />and capability in procuring the infrastructure. Unofficial<br />reason such as for off-balance sheet and ideological<br />is not relevant. Up to now, the Government<br />only allow investment in hard economic infrastructure.<br />Instead of using pure private finance, Indonesia<br />Government facilitates public funds either from<br />Central Government or Local Governments to finance<br />PPP projects. In most cases, this involvement<br />is because of marginality of the project. This results<br />in the condition where the Government still has<br />dominant role in the existing PPP projects. Compared<br />to the PPP framework in other countries like<br />in the UK, Indonesia PPP lacks of attention on output<br />specification and risk transfer. This may be because<br />of lacking of experiences as well as due to<br />high degree of Government involvement. Rigorous<br />policy is needed in this area to ensure Government<br />to achieve better value for money.<br />Keywords: Public-Private Partnerships, Public Infrastructure<br />Procurement, International PPP, Indonesia<br />PPP, value for money mechanism |
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| ISSN: | 1907-8374 2337-8220 |