STUDY ON BASIC REQUIREMENTS AND CRITICAL SUCCESS FACTORS OF IMPLEMENTING AVAILABILITY PAYMENT PUBLIC-PRIVATE PARTNERSHIP IN REGENCY/MUNICIPAL GOVERNMENT (CASE STUDY OF PUBLIC STREET LIGHTING IN BANDUNG MUNICIPAL AND MADIUN REGENCY)

• Main Author: Zata Izzati Shodiqi, Alia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/80839
• Institution: Institut Teknologi Bandung

Currently, an alternative form of return on investment in PPP that is widely used is availability payment (AP) or payment for service availability. Referring to PPP Books 2017-2023, only 1 out of 16 AP PPP projects at the regional level have successfully reached the operational stage (6% success rate), namely Madiun Regency Public Street Lighting (PJU). Several regional AP PPP projects have failed, for example, Bandung City PJU and Krian Sidoarjo Hospital. The failure indicates that the application of AP in regional infrastructure has so far not been successful in Indonesia. This thesis was conducted to identify the basic requirements, critical success factors, and lessons learned from AP implementation in regency/municipal governments. Thus, it is hoped that the provision of regional infrastructure with the AP scheme in the future can run seamlessly. This study used a mixed-method approach that combines qualitative and quantitative data from literature reviews, questionnaires, and interviews. The results showed that the basic requirements for AP PPP include the presence of regulations and institutions. The five main success factors of KPDBU AP ( AP PPP) in the Municipal/Regency Governments are a well-organized and committed government; political support; favorable and efficient legal framework; stable political and economic situation; and public and private sector commitments and responsibilities. The lessons learned from the Bandung City PJU case study are about Bandung's readiness for PPP such as the absence of PPP nodes and the absence of regional regulations for PPP in the public street lighting sector; lack of good relations internally between the Municipal Government and the DPRD; and incomprehension of PPP schemes. While the lessons learned from Madiun Regency are good relations, communication, and coordination between stakeholders; routinely hold capacity building to create a common vision and understanding of each individual.