The Opportunities and Challenges of Small-Scale Public-Private Partnership Schemes in Street Lighting Equipment Projects in Indonesia Maman Suhendra, Dian Handayani, Sakti Prabowo, Roihans Muhammad
State Finance Polytechnic of STAN & Indonesia Infrastructure Guarantee Fund
Abstract
The Public-Private Partnerships Scheme (PPP) has become an important option in overcoming the gap in infrastructure financing needs. From the total number of PPP projects implemented in several countries, it was found that the number of small-scale PPP projects was relatively greater than mega PPP projects. In line with this, in the Indonesian context, regional governments are expected to be able to innovate infrastructure financing, including by using the PPP scheme. The Madiun Regency Street Lighting Equipment (APJ) PPP project is an example of a small-scale PPP that has successfully completed the auction process and signed the Cooperation Agreement. By using a qualitative case study approach, this research succeeded in identifying several challenges as well as opportunities for more massive implementation of small-scale PPP in other areas in the future as follows: (1) optimal risk locations- (2) the strong commitment of the regional government as the person responsible for the cooperation project- (3) financial aspects/parameters accepted by the market- and (4) doable projects.
