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Journal : IPTEK Journal of Proceedings Series

Elaborating Appropriate Models of the Sustainable Financing Instrument in Public Private Partnerships (PPP) In Infrastructure Projects Prawitra Thalib; Faizal Kurniawan; Erni Agustin; Rizky Amalia
IPTEK Journal of Proceedings Series No 5 (2017): Simposium I Jaringan Perguruan Tinggi untuk Pembangunan Infrastruktur Indonesia (2016)
Publisher : Institut Teknologi Sepuluh Nopember

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.12962/j23546026.y2017i5.3173

Abstract

One alternative to accelerate infrastructure development in Indonesia is by involving the private sectors in the financing and development. In principle, Public Private Partnerships (PPP) can be classified into two, namely: a partnership project which idea came from the initiation of the government (solicited) and partnership project which idea came from the initiation of the business entities (unsolicited). To facilitate the implementation of the Public Private Partnership (PPP), the financing instruments that exist currently may be used to support the implementation of the Public Private Partnership (PPP). The importance of involving a third party other than investor and the government is related to the fulfillment of capital requirements and risks sharing in the event of loss. Although the rules clearly have been enacted, the infrastructure projects in Public Private Partnership (PPP) seem less attractive to investors. One of the causes is that the capital required by investors is too great with very high risk when investment in infrastructure is slow yielding. It is important to propose the scheme of sustainable financing which may allocate the PPPs’ risks proportionally.Until now, the government is too fixated with large cooperation projects with the private sectors, while the scheme offered is a Build-Operation-Transfer (BOT) scheme. This scheme is sometimes burden the investors, because the greatest risk is in the hands of investors. Regarding the financing of the Public Private Partnership (PPP), conventional financing such as a bank guarantee or sharia financing (‘kafalah’) can be carried out. Two such financing can be used in the Public Private Partnership (PPP), so it will increase the interest of investors to build infrastructure using Public Private Partnership (PPP). It is because such financing can overcome the difficulties of gaining large capital and also reduce the burden of risk borne by investors.
Co-Authors Abdullah, Nurhidayah Adinda Prisca Anugerah Puteri Adiwinata, Gianina Elizabeth Agung Triayudi Agus Sekarmadji Agus Yudha Hernoko Aldiansyah, Komari Ali Maksum Aliansa, Wahyu Amanah Agustin Ardhana Christian Noventri Arif Wahyu Hidayat Aristyawan, Patricia Anais Ave Maria Frisa Katherina Awayakuane, Revolino Robarto Ayik Parameswary Bagus Oktafian Abrianto Bart Jansen Christian Yulianto Rusli Cleoputri Yusainy Dany Miftahul Ula Darryl Evan Brouwer Debi Setiawati, Debi Dyah Devina Maya Ganindra Eddy Chandra Erni Agustin Fatmawati Fatmawati Ghansham Anand Hilda Yunita Sabrie Huzni Murad, Muhammad Syariqul Ilhami Ginang Pratidina Jusoff, Kamaruzaman Koko Srimulyo Komari Aldiansyah M. Hadi Subhan Maghfirah Aliefia Maradona Maradona Maradona, Maradona Maulani, Atiqoh Farhah Maulida, Vetty Silvana Moch. Marsa Taufiqurrohman Mohamad Nur Kholiq Mohd Ismail, Maria Mohd Sharil Nizam bin Md Radzi Muhammad Amirul Alfan Muhammad Anas Newa, Erni Rambu Novariyanto, Rizki Agung Nugraha, Xavier Ode Mohamad Man Arfa Ladamay Patricia Inge Felany Peter Mahmud Marzuki Pitriani, Winda Prastuti Sulistyorini Prastuti Sulistyorini Prawitra Thalib Qona’aha Noor Maajid Radian Salman Ramadhanti, Syifa Ramesh Nair Rizky Amalia Rizky Amalia Romadhona, Mochamad Kevin Salah, Mohammed Sapta Aprilianto Shintarini Kristine Setyobudi Simamora, Yohanes Sogar Siti Hafsyah Idris Sri Hajati Sri Hajati Sri Winarsi Suryantoro, Satriyo Dwi Syifa Ramadhanti Thabib, Prawitra Tobing, Sari Mellina Vincentius Gegap Widyantoro Wewi, Krisna Rambu Kaita Wisudanto Wisudanto Yula Anggriani Yulianto Rusli, Christian Yuniarti Yuniarti Zaky, Pradana Zuhairah Ariff Binti Abd Ghadas