Public-private Partnership Scheme Research Articles

A Triadic Competency Requirement Model for Successful Win-Win Optimization in Public–Private Partnerships: A Structural Equation Modelling

Public Private Partnership (PPP) initiatives are often promoted as a mechanism for achieving win-win outcomes. However, recent studies highlight the realisation as a hurdle due to gaps in public and private sector competencies. PPP studies have typically focused on specific competency areas and have typically overlooked assessing the interrelationships among various competency dimensions, although these interconnections reflect how competencies function in real-world projects. Therefore, this study sets the pace in the development and modelling of a holistic competency requirement model for the public and private sectors in PPP schemes. A comprehensive literature review coupled with expert validation through piloting identified and categorised the competencies while Structural Equation Modelling (PLS-SEM) was adopted in model development. Findings indicated that public and private sector competencies for win-win optimisation should capture functional requirements, which are PPP scheme and type dependent, organisational requirements which highlight the institutional build of the project parties and relational/behavioural competency requirements that capture the traits and alliancing attributes. The study recommends the strategic alignment of public and private sector roles, skills, and capabilities before initiating infrastructure development to cultivate an environment conducive to achieving win-win outcomes in PPPs. This study challenges the conventional isolated approaches to PPP competencies with an integrated approach that deepens the understanding of successful infrastructure development in PPP.

Feasibility Analysis Of The Provision Of Earthquake-Resistant Construction House (ERCH) Infrastructure With The Government And Business Entity Cooperation Scheme (GBECS)

Indonesia, situated on tectonic plate boundaries, is highly susceptible to earthquakes that cause significant damage to infrastructure and housing, particularly impacting low-income communities (LIC). This study evaluates the feasibility of providing Earthquake-Resistant Construction Houses (ERCH) through a Public-Private Partnership (PPP) scheme. Using qualitative and quantitative methods, the research examines technical, financial, and economic aspects of the PPP scheme, focusing on earthquake-resistant technologies and the involvement of government and business entities. Findings indicate that the PPP scheme effectively addresses challenges such as limited government budgets and land availability while promoting the construction of 10,000 special housing units for disaster-prone areas under Indonesia’s 2020–2024 Infrastructure Development Framework. Financial analysis shows a 25% Internal Rate of Return (IRR), a payback period of four years, and sustainable viability through private-sector participation and government guarantees. This study highlights the potential of PPP schemes to enhance disaster resilience, optimize resources, and provide sustainable housing solutions for vulnerable communities.

Public-Private Partnership Pembangunan Infrastruktur: Dilema Etik dan Praktik

Over the past decade, Public-Private Partnership (PPP) has emerged as an alternative scheme for financing government infrastructure development. This scheme addresses the fiscal limitations that constrain infrastructure development funding. However, implementing PPP contracts and collaborating with the private sector continue to generate controversy, particularly regarding public concerns about privatization and misconceptions surrounding the scheme’s use. This article analyzes the challenges of PPP implementation from philosophical perspectives to understand how the government and private sector can effectively cooperate within the PPP framework. Using Popper’s falsification approach, the article argues that the PPP scheme cannot be universally applied to all projects as widely explained in most feasibility studies and cost-benefit analysis. The stakeholders involved in PPP projects operate within different dimensions of ontology and axiology. Therefore, this article examines the ethical framework necessary for the specific application of PPP schemes, tailored to the unique characteristics and principles of different projects and sectors.

The Effect of Balikpapan-Samarinda Toll Road Construction with a PPP Scheme on The Formation of Economic Structure in East Kalimantan

Economic effects are just one of the many effects of the massive infrastructure investment in Indonesia made over the past ten years. The aim of connecting Indonesia between regions is the basis for massive infrastructure growth, especially toll road infrastructure. Several funding schemes have been implemented to build toll road infrastructure, including the Public-Private Partnership (PPP) financing scheme. This PPP financing scheme was also implemented in the Balikpapan-Samarinda toll road construction. Therefore, this research attempts to capture the impact of the construction of the Balikpapan-Samarinda toll road with a PPP scheme on the formation of the economic structure in East Kalimantan province using the Input-Output (I-O) table. The investment value for the Balikpapan-Samarinda toll road is IDR 9.97 trillion was injected (shock) into gross fixed capital formation in the construction sector. The calculation results in this research show that the construction of the Balikpapan-Samarinda toll road contributed 9.8% of total demand. Apart from that, there is a significant impact on the economic structure of East Kalimantan Province, as seen from the expenditure multiplier figure with an output total of IDR 15,111 billion, a total income of IDR 2,471 billion, and a total workforce of 25,095 workers due to investment in the construction of the Balikpapan-Samarinda toll road.

Stakeholders Mapping Based on Risk of Public Private Partnership (PPP) NonRegional Water Supply Provision in Indonesia

Clean water is a necessity for human life that is obligated to be fulfilled. Quantity and the quality of groundwater are decreasing; thus, water provision through pipelines using the PPP scheme became a flagship option to provide water services, especially in Municipalities. PPP became an option to accelerate clean water provision for non-regional water supply. Water as a necessity has very detailed regulations and complex risks and involves many stakeholders. PPP, risk management, and stakeholders have tight linkages conceptually and through framework. This research aims to map the necessary stakeholders involved in non-regional water supply provision with a risk-based approach to mitigate the risks arising from them. The methodology used in this research is a mixed method using risk identification analysis and stakeholder mapping and identification. The result shows that there are 10 stakeholders in the non-regional PPP water projects, which are split into 3 categories those are key stakeholders, supporting stakeholders, and participating stakeholders. Each stakeholder has the potential to trigger risk in a non-regional PPP water project that sums up to 10 risks. Through this authoritative approach and the relevant support, stakeholders can mitigate the risks that exist in non-regional PPP water projects.

Identification of Critical Success Factors (CSFS) for PPP Scheme Toll Road Projects in Indonesia

Public-Private Partnership (PPP) models represent an innovative procurement approach and offer promising prospects for the future of the construction industry worldwide. However, in practice, not all PPP projects, particularly toll road projects, succeed in achieving their goals. This poses a unique challenge in determining the Critical Success Factors (CSFs) as the basis for evaluating project success. Therefore, the aim of this research is to identify and explore the concept of CSFs for toll road projects under the PPP scheme based on reputable academic journals in the last 10 years. This study employs a sequential exploratory mixed methods methodology to identify and explore CSF indicators for PPP scheme projects and to verify and validate the findings. The re-sults of this study reveal 13 indicators crucial for project success, categorized into 8 factors. The findings of this research contribute significantly to the management of PPP toll road projects in Indonesia, serving as a reference for stakeholders in decision-making to enhance the effective-ness and efficiency of toll road project management.

Public–Private Partnership Strategy in Increasing Competitiveness Advantage of Malaysia’s Halal Cosmetic and Personal Care Industry

The Halal Industry Master Plan reflects the commitment and effort of the Malaysian government to encourage private business enterprises in the halal cosmetic and personal care industry to be more competitive. The private business enterprises need a more competitive advantage to compete with international non-certificate halal cosmetic products and more capacity to export halal cosmetic and personal care products. This empirical study was conducted to test the relationship between government support programmes and the competitive advantage of private business enterprises and examine the effect of the mediating variable of business opportunity on the relationship between government and public business enterprises. Data were collected from 84 participants from the top management in private business enterprises in cosmetic and personal care products. Data were analysed by using PLS-SEM. A significant positive relationship between contractual programmes and competitive advantage was found. However, this relationship could have been more significant when business opportunity was included as a mediating variable. Meanwhile, the study found a negative relationship between relational programmes and competitive advantage. Surprisingly, the relationship between relational programmes and competitive advantage became positive when business opportunity was added to the model. This study focused only on Malaysia’s halal cosmetic and personal care industry. Future studies may be conducted in other halal sectors and other regions.

Public-private partnerships scheme of pioneer train case study in South Sumatera area

Pioneer trains in Indonesia have been fully funded by the government. The construction needs a lot of funding that would burden the state budget. One of the alternatives is the public-private partnership scheme. This study aims to analyze the most effective unbundling scenario for financing and maintaining the Indralaya-Tanjung Senai train. The life cycle costs and conducting sensitivity analysis according to applicable regulations. The scenarios are based on ticket price increases and government support for the operation and maintenance (O&M) for this pioneer train route, calculated net present value (NPV) and internal rate of return (IRR) value. Scenario 1 assumes that tickets do not receive subsidies; private companies are responsible for O&M costs. Scenario 2 assumes that ticket prices are set by private companies; the government is responsible for procurement and maintenance costs. Scenario 3 assumes that the government provides subsidies of IDR 10,000 per passenger as well as railway infrastructure; private companies bear the cost of procuring railbuses and operational expenses. Based on calculations with Scenario 1 NPV is IDR 0.73 billion; with Scenario 2 is IDR 4.64 billion and with Scenario 3 is IDR (–)1.34 billion. The analysis shows that increasing passenger fares according to price raises and inflation rates, and subsidies from governments for maintenance costs will make this railroad project financially feasible.

Environmental Social Governance Integration for Infrastructure Development in Public Private Partnership Toll Road Sector

This study examines the integration of ESG (Environmental, Social, and Governance) principles into Public-Private Partnership (PPP) Scheme for Indonesian infrastructure development. Employing a qualitative method with content analysis, the study reveals that the Ministry of Finance has established an ESG framework for PPP, with implementation already in Toll Roads sector. In the PPP toll road sector, Ministry of Public Works and Public Housing Regulations address ESG considerations, and a monitoring and evaluation system called “Penilaian Jalan Tol Berkelanjutan (JTB)” has been introduced since 2022 to assess ESG performance. Ten ESG-compliant rest areas along the Trans Jawa toll road network have been identified, and Jasa Marga is recognized as the best-performing State-Owned Enterprise (SOE) in managing these toll road rest areas. The study underscores that ESG integration in PPP projects can attract financial access, investments, and government support, ultimately promoting sustainability and enhancing PPP governance. By integrating ESG principles in PPP it can play a pivotal role in advancing sustainability and contributing to the achievement of Sustainable Development Goals (SDGs).

Public Financing Model Through Long-Term Contractual Agreements for Public-Private Partnership Projects

This research aims to analyze alternative models of public financing in the Public-Private Partnership (PPP) scheme involving the government and the corporate sector. This research utilizes a qualitative research method with a content analysis data collection methodology to examine the limitations and shortcomings of PPPs. The findings of this study indicate that Public-Private Partnerships (PPPs) have shown a persistent pattern of failure, leading to continuous renegotiation between the government and the private sector. The implementation of PPPs carries risks that can lead to a loss of public oversight of PPP initiatives. The government's lack of experience in making judgments that can carry political risk also plays a role. The PPP model sets a higher cost of capital, which causes the private sector to charge higher tariffs to customers, possibly resulting in a monopoly by private companies. PPPs have imposed a burden on the state and faced opposition to privatization due to a lack of understanding among parties involved in state-owned enterprises (SOEs). The government lacks transparency in decision-making regarding privatization and fails to provide adequate information to stakeholders involved in SOE privatization. Government decision-making on privatization lacks transparency and does not follow established processes and procedures.

Policy Strategies for Public–Private Partnership on Broadband Infrastructure: A Systematic Literature Review

Abstract This study aims to analyze the development of research themes in the public–private partnership (PPP) project policy strategy for broadband infrastructure from 2000 to 2021 and identify the most popular research topics. Systematic literature review (SLR) of 927 Google Scholar and Scopus publications, followed by bibliometric analysis, co-occurrence keywords, and in-depth qualitative approaches with content analysis, was performed. Articles are classified based on the source of publication, year of publication, country of origin, journal ranking, and research theme. This study finds that previous studies discussed the development of policy strategies and regulatory theory. Most articles were published in journals indexed under Q1, while only one was published under Q4. This study highlights the importance of government initiatives in developing broadband infrastructure through PPPs. The findings show that the policy strategy, legal framework, and regulations influence the success of PPP schemes. Private sector involvement can reduce costs and provide access to resources and expertise the public sector may still need to gain. This study suggests that policymakers encourage the participation of the private sector in broadband infrastructure projects and provide incentives for them, such as public funding. This study benefits governments or policymakers who intend to implement the PPP scheme to deliver public services.

Determinant Features to Reduce the Infrastructure Gap in Saudi Arabia under a Public–Private Partnership Scheme

Saudi Arabia is forecast to develop a significant number of infrastructure projects, as recorded in its strategy Saudi Vision 2030. To implement this strategy, the country intends to leverage public–private partnerships. This research has various goals. Firstly, it intends to identify the determinant features (DFs) that may facilitate the population of private–public partnership (PPP) infrastructure projects in the Kingdom of Saudi Arabia (KSA) through the opinions of PPP experts. Second, it aims to analyse these opinions through a statistical approach. The research used the following methodologies: the development of a survey amongst sectorial experts, with a total of 45 valid responses; a statistical characterisation of the responses; and an exploratory factor analysis to determine the minimum number of factors explaining the proposed objectives. The findings of the research revealed that the five most relevant factors were the availability and effectiveness of a proper regulatory and legal framework; adequate risk allocation and sharing among project stakeholders; a straightforward project brief and client outcomes; the comprehensive and business viability of project feasibility studies; and finally, the assurance that proper project value management systems are in place during different project stages. As its principal contribution, this study finds, based on the experts’ opinions, that KSA should consider the mentioned determinant factors to ensure that PPP plays the expected role in the provision of infrastructure.

The Provision of Public Street Lighting Based on Risk Mitigation for Energy Efficiency and Environmental Protection

Public Street Lighting (PSL) is part of road infrastructure that is vital for the safety and comfort of road users. The availability of PSL can also boost the economic growth of a municipality because the longevity of activities from the population and the industry is increased. The crucial role of PSL is still not being offset with good availability and management most municipalities in Indonesia still cannot fulfill the needs of good PSL requirements and using a lot of electricity. This is due to the lack of PSL management in Indonesia is caused by the limitations of technical aspect management and lack of technological availability, limitations of the administrative function as well as lack of alternative financing scheme. To accelerate the availability of PSL and to optimize the management it needs an efficient provision scheme and mitigate risk caused by the ineffective management of PSL. The methodology that is being used in this research are problem solver and risk sharing approaches. The result of this research shows that compared to conventional procurement from the state budget, the Public Private Partnership (PPP) scheme can solve most of the provision and management problems of PSL. In the PPP scheme, there is a risk transfer of 80% from the government to the public sector so that PSL services are better, this is balanced by the positive value of Value for Money (VFM). The energy efficiency potential of the PSL PPP can reduce up to 53% of electrical energy use from replacing lamps in PSL. The use of LED lights makes waste from PSL more environmentally friendly because it does not contain mercury like traditional lamps which are widely used in PSL and reduces CO2 emissions produced by electrical energy.The Government must promote the PPP scheme as part of innovative financing for the provision and management of PSL in Indonesia as there are only 3 out of 514 municipalities that has already implemented the PPP scheme for PSL Project.

State Asset Utilization to Support Public Private Partnership Project in Indonesia: A State Asset Management Review

Public-Private Partnership (PPP) is one of the government strategies to provide infrastructure to serve the community. In the implementation process, PPP has challenges in land acquisition. In response to this challenge, the utilization of State Assets (Barang Milik Negara/BMN) in the form of land and buildings offers a prospective solution. To utilize the State Asset efficiently in the PPP scheme, the information on the asset should be updated based on the State Asset Management and Information System. This paper aims to describe the role of State Assets in supporting Public Private Partnership (PPP) projects in terms of achieving project financial feasibility using a particular study case and how to update the State Asset Management System. The methodology used in this paper uses qualitative methods with literature studies, focus group discussions (FGD), and interviews, to determine the intended role of State Assets. This paper shows that the existing asset management system has accommodated efforts to utilize state assets to support the PPP project. While from the information system point of view, the basic framework of the information system has been formed, the current project needs to be further developed referring to the basic framework of the information system so that it can effectively and efficiently support efforts to utilize state assets in PPP projects.

ANALYSIS OF ELECTION OF INFRASTRUCTURE FINANCING SCHEMES IN THE DEVELOPMENT OF REGIONAL WASTE MANAGEMENT IN THE DISTRICT AND CITY OF PROBOLINGGO

Regional waste management is a crucial aspect in ensuring environmental sustainability and public health in the Probolinggo Regency and City. One of the main challenges in the development of regional waste management is the financing of the necessary infrastructure to achieve these goals. This research aims to analyze the selection of infrastructure financing schemes in the development of regional waste management in the Probolinggo Regency and City. The research methodology involves field surveys, interviews with relevant stakeholders, and economic and financial data analysis. The investment analysis method used includes calculations of Net Present Value (NPV), Internal Rate of Return (IRR), and Benefit Cost Ratio (BCR), considering Availability Payment financing. Additionally, this study will also analyze Life Cycle Cost (LCC) while considering various financing schemes, including government financing schemes (APBN/APBD) and non-government financing schemes such as Public-Private Partnership (PPP) schemes like Build-Operate-Transfer (BOT) and Regional Loans. The results of the analysis show that all financing schemes, both government and non-government, yield viable results. These three schemes are then validated through Focus Group Discussions (FGD) using financial and non-financial criteria. The selected financing scheme is the regional loan, with the second alternative being APBN & APBD. Meanwhile, the BOT Public-Private Partnership scheme is considered as the last alternative financing scheme.

Research on a public-private partnership scheme for space industry creation

Research on a public-private partnership scheme for space industry creation

Governance Framework and Public–Private Partnership for Universal Health Coverage: Findings from India’s Federal Health Structure

Abstract Background: The role of private health sector in advancing universal health coverage is being recognised globally. A number of public–private partnership (PPP) strategies have been implemented across the states in India. States are primarily responsible for health service delivery in India. Objectives: To summarise various PPP schemes and projects in health sector across the states in India and to understand the ecosystem, i.e. policy, legal and institutional framework that are critical for effectively governing the partnerships. Materials and Methods: The study was carried out in two stages: a comprehensive desk review, followed by field visits for in-depth interviews (IDIs) of key stakeholders in selected states. A total of 52 IDIs were conducted from various levels of stakeholders. Results: Nearly 250 PPP initiatives in health sector across all Indian states were identified and studied. Partnership with the private sector was predominantly in the areas of emergency transport and laboratory diagnosis and in the delivery of selected primary care services. PPPs in health infrastructure (hospitals and medical colleges) and purchasing arrangements are rapidly emerging across most states. However, only few Indian states have health sector-specific PPP policy or legal and/or institutional framework governing PPPs and organisational units implementing partnership schemes. The capacity to conceive, design, implement and manage PPPs in health sector was found either absent or insufficient in most states. Conclusion: There is a need for developing mechanisms for effective and functional partnerships with the PHS for achieving national health policy goals in India. There is a need for well-enunciated policy and governance framework for private sector engagement. Indian union and state governments need to do detailed assessment of the PHS market behaviour; legal, regulatory and oversight mechanisms; building organisational structures with capacities and developing platforms for stakeholder dialogue. Findings from the Indian context could offer useful insights for other low- and middle-income countries aiming to advance towards achieving universal health coverage.

Reviewing Airport Privatization: An Experience of India

This study has reviewed the airport privatization scenario in the Indian context. It has examined the circumstances of airport infrastructure under the Public-Private Partnerships (PPPs) model. The Government of India (GoI) is justifying the development of airports through PPP mode due to their necessity to provide standard services and efficiency of the projects. However, the deficiency in investments and viability gap are being levy in the form of development. It has synthesized several works of literature. It looks at the historical changes and the ways that evidenced the changes. It has reviewed the developing scenario of airport PPP in India. During the 1990s economic liberation, the activities of PPPs emerged in the airport and aviation of India. India has 24 years history of airport PPPs. This study aims to provide a review of airport PPP experience in India. PPPs in the Indian airport industry are examined in sound regulation. The Government of India has adopted PPP schemes instead of going into full privatization of airports. Since the 2000s, PPP models have been adopted in the development of new airports and the reformation of operational and nonoperational airports. In the year 2006, Indira Gandhi International Airport, (IGIA) in Delhi, and Chhatrapati Shivaji International Airport (CSIA) in Mumbai were partially privatized. After the successful implication of PPPs, in the airport infrastructure the numbers are growing. In the year 2020, six airports were privatized through the PPP model by Adani Enterprises. To date, there are 21 airports in the pipeline of privatization.

Trade Based Money Laundering Evidence from Indonesia: Cigarette Import Customs Smuggling and Money Laundering

Public-Private Partnership (PPP) is an instrument to strengthen synergy in eradicating money laundering and other economic crimes launched by the government of the Republic of Indonesia, with 3 (three) main priorities to be handled, namely trade-based money laundering (TBML), narcotics, and business email compromise (BEC). The Financial Action Task Force (FATF) defines Trade Based Money Laundering as the process of disguising the proceeds of crime and transferring value through the use of trade transactions in an attempt to legitimize its illegitimate origin. Customs is everything related to the supervision of the traffic of goods entering or leaving the customs area as well as the collection of import and export duties, the supervision of which is carried out by the Directorate General of Customs and Excise (DGCE). In import customs activities, importers are obliged to fulfill customs obligations, one of which is the inward manifest. The research aims to provide an overview of money laundering and violations in the Customs Sector. Using secondary data from 2019 to 2023 and primary data through interviews, to answer the research objectives using qualitative methods based on court decisions. The research results show that the mode of money laundering violations in the customs sector is smuggling of unmanifest imports of cigarettes without excise stamps attached using the ship-to-ship mode. In laundering money from the crime, the perpetrator hides or disguises the proceeds from the crime of selling cigarettes that are not attached with excise stamps by placing the money from cigarette sales in several accounts in the perpetrator's name and in other names as well as in other forms of assets. Research suggestions, violations in the customs sector that have sufficient evidence of a crime, apart from being able to investigate predicate crimes, money laundering investigations can be carried out so that asset recovery can be carried out and optimizing the PPP scheme in cracking down on money laundering.

KAJIAN SISTEMATIS KEBIJAKAN SKEMA PEMBIAYAAN KERJA SAMA PEMERINTAH DENGAN BADAN USAHA (KPBU) PADA SEKTOR PERUMAHAN GUNA MENGATASI BACKLOG DI INDONESIA

The need for housing supply in Indonesia is prodigious. The 2020-2024 RPJMN projects housing funding needs to reach IDR 397.9 trillion or 6.17 percent of all infrastructure financing needs of IDR 6,445 trillion, while the government can only provide IDR fund 127.2 trillion. Fiscal constraints require the government to seek alternative sources of funding so as not to burden the state's finances. On the other hand, the housing backlog in Indonesia is increasing along with the increase in population. Calculation results using BPS data show that until 2021 the backlog figure inhabiting 7.3 million housing units, while the backlog figure has reached 13.5 million housing units. Through the Public-Private Partnership (PPP) scheme, the private sector can be involved in fulfilling the housing supply in Indonesia. To attract the private sector, the government provides support in the form of availability payment facilities considering that the target users are low-income communities (MBR).