Comparing Indonesian PPP projects and Japanese PFI model: What can we learn for sustainable urban transport for Indonesian cities?

Abstraksi

The Nawacita agenda, under the leadership of President Joko Widodo, for the transport sector, focuses on large investments in infrastructure to improve transport and connectivity to better serve the people. However, infrastructure development is hindered with the lack of fiscal capacities of the government. Estimated infrastructure funding needs in RPJMN 2015-2019 shows that the central government is only able to provide 41.3 percent of the total financing, while 36.5 percent is expected form the private sector using the Public Private Partnerships (PPP) scheme. PPP in large transport infrastructure investments is very slow. This research aims to examine challenges in PPP implementation and compare with the Private Finance Initiative (PFI) of Japanese model. The findings provide innovative solutions to successful implementation of PPP at all government levels in Indonesia. Using the case study of Japanese urban transport projects, this research inspires urban transport planners and local planning agencies to creative more opportunities for PPP. The data is obtained from the PPP Books produced by BAPPENAS from 2011 to 2018 focusing on the transport projects including its stages of PPP progress from preparation, procurement, and management for implementation. The capacity of PPP units at different government levels need to be strengthening and integrating during the PPP processes. At the local government level, small-scale PPP Projects needs to be effectively introduced to bring more benefits for local people and community-based organization, small-scale corporation, and local private sector for more job creations and employment opportunities.