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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 Adhika Ginanjar Widhisana Agus Yudha Hernoko Agus yudha Hernoko Aldhi, Ian Firstian Aldiansyah, Komari Aliansa, Wahyu Amalia Rizki Amelia Bellatrix Pantjo’u Angelica Milano Aryani Wibisono Anjani, Thifal Arif, Mochamad Shamsul Bagus Oktafian Abrianto Bart Jansen Bhayangkara, Ikhlasul Amal Daniel Julian Tangkau Darwati, Yulin Dina Kusuma Ratih Dinda Ajeng Puspanita Dona Budi Kharisma Dona Budi Kharisma, Dona Budi Dwi Hardaningtyas Dwi Hardaningtyas Elvia Rahmawati Erni Agustin Eva Diana Fahrian Saleh Siregar Faizal Kurniawan Faizal Kurniawan Fendy Suhariadi Fendy Suhariadi Gananta, M. Geigiansyah Aulia Putra Hilda Yunita Sabrie Ian Firstian Aldhi Ibtisam @ Ilyana Ilias Kholiq, Mochamad Nur Kholiq Nur Kholiq, S.H., M.Si., Mohamad Nur Komari Aldiansyah Komari Aldiansyah Kurniawan, Faisal M. Gananta M. Hadi Subhan Maradona Maradona Maradona, Maradona Mas Rahmah, Mas Maulani, Atiqoh Farhah Mochamad Shamsul Arif Mohamad Nur Kholiq Nugraha, Xavier Nur Utari Setiawati Nuryadi, Fredy Oktafiyana Oktafiyana Oktafiyana, Oktafiyana Pamoro, Giza’a Jati Panjaitan, Selvy Permanasari, Tyasning Putra, Nurwahyu Dimas Rahmawati, Elvia Rana, Digvijay Singh Rizky Amalia Rizky Amalia Septi Ariadi, Septi Sri Hajati Sri Hajati Suheriyadi, Bambang Suparto Wijoyo Theo Jornada Natanael Sianipar Tonic Tangkau Tri Vena Putri Tri Vena Putri Tri Veny Putri Trisadini Prasastinah Usanti Umar Haris Sanjaya W Lesawengen, Roinardes Wahyu Agha Ari Wimboko Wimboko Windy Agustin Wisudanto Wisudanto Yuniarti Yuniarti Zuhairah Ariff Binti Abd Ghadas