Critical success factors of public private partnerships - toll roads project in Indonesia

Author: Abri Setiawan

Setiawan, Abri, 2020 Critical success factors of public private partnerships - toll roads project in Indonesia, Flinders University, College of Business, Government and Law

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Road infrastructure plays a vital role in Indonesia's national economy as it serves as a conduit to deliver public goods and services throughout the country. Thus, to address the escalating mobility issues, toll roads’ development may be one of a range of solutions. Given that developing toll roads infrastructure is a complicated endeavour and requires substantial funding, the government encourages the participation of the private sector in this construction through the PPPs model. However, an identification of the critical factors that contribute to make a PPPs toll roads’ project a success, is needed. This research project aims to identify those factors from a public and private sector perspective by employing a quantitative approach, and with the analysis based on the online survey results. Statistically, all factors are meaningful according to the respondents' perceptions. However, the key factors selected by respondents differ for each sector, but, there are two factors where both sectors share same perspectives, namely: favourable legal framework and competitive procurement process. Some obstacles may hinder the development of toll roads projects under PPPs schemes; complex and conflicting regulations, poor project selection, and political issues remain the major factors that inhibit the private investors' participation.

Keywords: public private partnerships, toll road, critical success factors

Subject: Policy and Administration thesis

Thesis type: Masters
Completed: 2020
School: College of Business, Government and Law
Supervisor: Dr Zhibin Zhang