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Jakarta Post

Failure in public partnerships

  • Irwanda Wisnu Wardhana

Tokyo   /   Fri, August 14 2009   /  09:42 am

Being perhaps the most geographically unique country in the world, Indonesia faces a higher burden compared to other, continental nations in ensuring infrastructures equitably to its citizens. Instead of producing this infrastructure alone, the government has, since 2005, mobilized the necessary funds from the private sector, both domestically and internationally, by enacting Presidential Decree No. 67/2005, an umbrella regulation for public private partnerships (PPPs). Until to day, the PPPs have embarked on 87 projects, worth a combined total of more than US$34 billion (PPP Book, 2009). Regardless of any potential benefit, a PPP is neither a perfect concept nor a panacea. As an example, the United Kingdom is the leading country in terms of PPPs; however, there was a spectacular case of failure surrounding Metronet (UK House of Commons, Transport Committee, 2008). This £15.7 billion (U...