STUDY OF PUBLIC PRIVATE PARTNERSHIP (PPP) SCHEME TO INDONESIAN TOLL ROAD : CASE STUDY SOLO-KERTOSONO TOLL ROAD

• Main Author: NAIMAH (NIM 25007023); Pembimbing: Rudy Hermawan Karsaman, Ir., M.Sc., Ph.D., dan Ade Sjaf, SYAFAATUN
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/13133
• Institution: Institut Teknologi Bandung

<br /> <br /> <br /> Funding mechanism through joint effort of Government (Public sector) and Private sector is called Public-Private Partnership (PPP) and now is used as an alternative and effective method to mobilize additional funding source and benefit from private sector efficiency. PPP is not the only funding mechanism, but it can be used with suitable project and clear profit.<p>The purpose of this research is to study government support on PPPs implementation based on other countries PPPs experiences. The other countries are United Kingdom, Korea and India.<p>This research elaborates those improvement possibilities through exploring opinion from some stakeholders, such as government/regulator, operator/private sector and academic. Government support that might be adopted are land acquisition, capital subsidize, minimum revenue guarantee, and tax free.<p>The result shows that several government support to the project increased the financial viability. Those support are land acquisition, upfront subsidy and government construct half of the section. It gives the higher financial viability for each section, IRR Solo-Ngawi section increase from 13.63% to 14.47%; 14.53% and 14.55%, and IRR Ngawi-Kertosono section increase from 14.17% to 15.10%; 15.24% and 15.28%. With this type of government support, the government have to provide a budget for each support to meet the financial viability (sunk cost).<p>Tax subsidies give enough financial viability for the project. With this type of support, the government does not have to provide any budget. The tax subsidies should be considered by the government.<p>The clawback principle also need to be considered by the government, in order to allow the government to earn the financial benefit from the toll road project as well.