The Force of Strategic Infrastructures: The Role of Public-Private-Partnership to Strengthen Sustainable Developments in Indonesia
The Republic of Indonesia as greatest archipelago state in the world with over 260 million people, facing various of challenge in the infrastructure sector. Nowadays, the growth of infrastructures has been the focus of the Indonesian government. Infrastructure means not only for transporting people, but also goods and services including information. Indonesian government scheme to build huge numbers of infrastructures such as road, highway road, bridge, and airport also broadband networks. President Joko Widodo as Indonesia President, in every presidential speech always mentioned and invited numbers of investor from other countries to invest in Indonesia to support Indonesia Infrastructure. To build numbers of infrastructure, Indonesia could not only rely on financial comes from the tax income or fiscal. It also could be realized by the cooperation between public and private entities, namely Public Private Partnership (PPP). A strategic PPP approach can potentially mitigate the overruns and schedule delays that plague traditional infrastructure project delivery by clearly delineating governance, allocating shared risk, integrating resources, applying best practices, and establishing a lifecycle– the long perspective of costs and accountability. Various infrastructure projects in Indonesia based on the PPP Framework. Indonesia Government has numbers of policy to support this framework such as Presidential Regulation No 38/ 2015 about the Public-Private Partnership for Infrastructure Project and President regulation No 58/ 2017 about The Accelerations National Strategic Project. The purpose of this research is to have legislation and regulation framework as a platform the Public-Private Partnership in Indonesia, and identified the potential issues with mitigation action for Indonesia as developing countries in implementation PPP for an infrastructure project to triumph sustainable developments in Indonesia.
The authors are affiliated to Faculty of Law, Universitas Padjadjaran, Bandung, Indonesia.