Governance instruments and their links to network relations are seen as principal elements of the success of PPP. The PPP implementation also deals with multi-level regulation. Jatiluhur Regional water supply is considered to have a governance complexity and potential to face various obstacles that will affect the smoothness of project implementation compared to others. Jatiluhur Regional water supply was initiated by a business entity (unsolicited), faced a setback in realization and was halted in the preparation of the procurement process so that the project had not yet reached financial close after two years. The research aims at identifying the governance problem of the Jatiluhur Regional water supply project implementation causing the delays. This is qualitative research using content analysis and Social Network Analysis (SNA). The gap on PPP regulations, some risks that have not been well mitigated, slow decision making, weaknesses of local governments and off-takers roles in the network, the problem of determining the Government as the Contracting Agency (GCA), mapping of ownership conflicts and actor distrust of GCA competency are the problems of governance found in the case of Jatiluhur regional water supply implementation. In order to accelerate the project implementation, this study suggests the optimization of multi-level governance by, first, revising the PPP Regulations in terms of further explaining the unsolicited project of PPP and the criteria in the determination of GCA. Further, the optimization requires determination of the new GCA in strengthening the role of actors in coordination and decision making, as well as in risk mitigation and latent conflict management. Jatiluhur regional water supply project is also known as the first regional water supply using the PPP scheme in Indonesia. Therefore, the multi-level governance perspective of the PPP implementation can be seen as a precedent for the next project of water supply infrastructure in Indonesia which uses PPP scheme.
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