PPP as a Financing Scheme for Supporting Infrastructure in Special Economic Zones

Abstraksi

Efforts to accelerate national economy became the main issue being intensified by the Indonesian government (GoI). The acceleration of national economy can occur due to the availability of investment fields and the provision in investment through special economic zones (SEZ). The GoI has 12 potential SEZs that can boost the regional economy and the national economy. Unfortunately, there are only 2 SEZs that has been running its economic activities. One of the main discussions in SEZ is how to provide supporting infrastructure in order to optimize activities of real sector in SEZ. The limited state finances make the GoI must provide an innovative financing scheme to close the financial gap on the state budget. Public-Private Partnership (PPP) becomes one of the considerations in the financing schemes application to provide SEZ supporting infrastructure. In essence, the private sector plays an active role in infrastructure development to provide services for many parties so that mutual relationships can occur between the GoI and the private sector. This study uses descriptive analysis using primary data and secondary data. Primary data are obtained through in-depth interviews and secondary data are obtained through desk study. The study scope includes: (i) regulatory and policy review related to SEZ and PPP regulations; (ii) analysis of potential PPP financing schemes to provide SEZ supporting infrastructure; (iii) identification of SEZ supporting infrastructure that can be done using PPP financing scheme. This study recommends PPP financing scheme that can be used to support SEZ realization in Indonesia which create significant economic growth.