DOMINANT RISKS IDENTIFICATION AT NATIONAL ROAD PRESERVATION PROJECT USING AVAILABILITY PAYMENT PPP SCHEME (TRANSFERRABLE RISKS TO IDENTIFY VALUE FOR MONEY)

• Main Author: Dionisius H Simanjuntak, Kevin
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75057
• Institution: Institut Teknologi Bandung

The decline in GDP per capita in 2020-2021 due to the impact of the covid-19 pandemic has created an urgency to accelerate the increase in GDP per capita, one of which is through the preservation of national road so that the GDP target according to the 2020-2024 RPJMN and the vision of Developed Indonesia in 2045 can be realized. One method of accelerating the increase in GDP is the use of the Public Private Partnership (PPP) scheme in the form of Availability Payment (AP). With this scheme, after construction is completed, regular payments to investors are in accordance with the fulfillment of the road performance index (RPI) stipulated in the contract agreement. Through AP scheme, the costs that must be incurred by the government are certain and the government does not incur large amounts of money at once. The main advantage of the AP scheme is the allocation of most of the project risks (transferrable risks) to investors/private parties. The risk management carried out by the private sector towards transferrable risks needs to be studied as a reference for the next AP scheme project. The risks that are considered dominant by the private sector based on the probability of occurrence and the impact of risk costs include Location Security Risk, Increase in Construction Costs, Increase in O&M Costs, Inflation and Interest Rates, and Changes in Taxes in General. After conducting interviews with the investors, the causes of the dominant risks are the imperfections of other parties in carrying out their obligations and events beyond the control of the investors. The main response of the investors to mitigate dominant risks are the preparation of an accurate Detailed Engineering Design (DED), self-monitoring, maintenance and rehabilitation plans for the construction period and service period, close internal coordination between investors such as planners, supervisors and executors, as well as value engineering for things that do not need to be built in the field without reducing Road Performance Indicators (RPI).