Abstract
Infrastructure development with PPP (Public Private Partnership) scheme is a relatively new concept applied by the Indonesian construction industry as an alternative to overcome delays and the low absorption of the Indonesian Government Budget (APBN) and Regional Government Budget (APBD) in the procurement of basic infrastructure. However, in practice, the failure rate of the government in carrying out infrastructure projects with PPP scheme is high. The failure of PPP project is generally caused by the way the government works in preparing projects that are not adjusted to the needs of PPP, the constraints of land acquisition, poor coordination between central and local government, participation, and overlapping regulations. This raises the question of how to know the condition of government readiness in implementing projects under PPP scheme and identify the constraints affecting government readiness. This study develops an assessment that can be used to measure government readiness in implementing projects under PPP scheme. Factors used in the system were developed based on three studies on the readiness assessment systems in various countries, namely: Public-Private Partnerships for Transport Infrastructure Toolkit from PPPIRC World Bank, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and United Nations Economic Commission for Europe (UNECE). The assessment will be used to assess the level of readiness and constraints faced by the government of Bandung in implementing the project LRT Bandung.
Highlights
As time goes by, the need for various infrastructure facilities support is increasing
The failure rate of Indonesian government in building infrastructure projects is relatively high.The failure of Private Partnership (PPP) project is generally caused by the way the government works in preparing projects that are not adjusted to the needs of the PPP, the constraints of land acquisition, poor coordination between central and local government, the regional People’s Representative Council (DPRD) participation, and overlapping regulations
As described in the previous chapter, to interpret the value of readiness obtained from the calculation of the readiness assessment system, scaling is done in the form of project preparation level under the PPP scheme
Summary
The need for various infrastructure facilities support is increasing. Indonesia is still lagging behind in the development and provision of transportation infrastructures such as railways, road networks, ports, and airports This condition occurred for almost the past 20 years or since the economic crisis of 1997/1998 to the current era, when compared to other countries or neighbor countries such as Malaysia (source: PPP Guidelines, PT SMI, 2014). The government considers this condition is caused by the problem of low allocation for infrastructure especially transportation infrastructure. This research will develop factors of government readiness assessment for transportation infrastructure project with the scheme of PPP. The results will be compared to the condition of the government's readiness for LRT development project in Bandung
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