Public-private partnership water supply project in Indonesia

Abstract

Water supply system management for providing proper services to the community is a challenge for the Government of Indonesia. The Indonesian government through the Public-Private Partnerships (PPPs) scheme involves the role of the private sector for decent, quality, and cost-effective water supply system infrastructure. This study aims to describe problems faced by the Regional water supply system PPP project initiated by business entities (unsolicited) in Indonesia. Also, describes the application of Critical Success Factors as a problem-solving strategy in the implementation of the water supply system PPP project. To express this, This research uses a case study qualitative method involving Government Contracting Agency (GCA) informants from the Ministry of X. Data were collected through semi-structured interviews and documentation studies. It was found that in this case, the water supply PPP project has gone through the stages of PPP agreement signing which still faced problems in land provision, the certainty of raw water sources, inflation, tariff setting, and downstream infrastructure development. GCA seeks to resolve the problem with intensive coordination between related parties, financial and non-financial compensation, alternative sources of raw water, and support from the GCA Budget for downstream development.