EVALUATION ANALYSIS OF THE IMPLEMENTATION AVAILABILITY PAYMENT SCHEME FOR DEVELOPMENT INFRASTRUCTURE MAKASSAR – PAREPARE RAILWAY

• Main Author: Nurul Kusuma Whardani, Putri
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/53968
• Institution: Institut Teknologi Bandung

The Indonesian government estimates that around 45% of the total infrastructure funds is required to meet the gap in infrastructure funding in 2020-2024. An effective funding innovation is needed to deal with this issue. Public Private Partnership (PPP) is a financing innovation regulated in the Presidential Decree Number 38 of 2015. One type of the PPP investment return is the Availability Payment (AP) scheme, a recently implemented scheme in Indonesia. The Makassar – Parepare Railway Project (KA MAKPAR) is a PPP pilot project using the AP scheme in the transportation sector, specifically on the railways within the Ministry of Transportation. Therefore, this study intends to evaluate the implementation of the AP scheme on the KA MAKPAR project by observing the gap between the theory and implementation and by analyzing the difficulties in its application and then providing some recommendations for the smoother implementation in the future. The scope of evaluation for this study uses 8 (eight) parameters for assessing the application of the AP scheme. These 8 parameters are project criteria, PJPK commitment, fulfillment of PPP principles, financial feasibility analysis, PPP fiscal capacity, performance indicators, land acquisition, and guarantees. From the 8 (eight) parameters of the AP scheme implementation assessment, it can be concluded that this pilot project is not suitable for the pilot AP AP scheme in Indonesia’s transportation sector. There were several gaps between the theory and the implementation of the AP scheme, this project did not apply the AP scheme precisely because it is a hard infrastructure, the development of segment F was not appropriate for the AP scheme because it did not provide benefits to the wider community (public), and the application of the AP scheme in this project we more orientated to the operation and maintenance of infrastructure, while the development investments were only made on the segment F.