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Jakarta Post

Public-private partnership infrastructure market in RI

  • Harun al-Rasyid Lubis

Jakarta   /   Wed, October 26 2011   /  08:00 am

An adequate stock of infrastructure is vital in maintaining an efficient and competitive economy within a country. Indonesia’s competitive trend has been declining mainly due to inadequate infrastructure, ineffective bureaucracy and corruption.

Based on various motives, governments all over the world are looking increasingly to public-private partnerships (PPP) to bridge their infrastructure gaps. In general terms, a PPP is a contract between a government and a private party in which the private party assumes significant project risk in the design, financing, construction and operation of a project.

More succinctly, PPP projects are aimed at providing more efficient public services delivered by private sector actors through an optimal risk-sharing arrangement.

Before the 1997 Asian financial crisis, among developing countries, Indonesia was still a leader in PPPs...