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Critical Factors in Public Private Partnership Projects for Railway Projects in Indonesia – (Case Study: Comparison of Solicited and Unsolicited Proposals)

Ussisa Annisari

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Annisari, U., 2021. Critical Factors in Public Private Partnership Projects for Railway Projects in Indonesia – (Case Study: Comparison of Solicited and Unsolicited Proposals). United International Journal for Research & Technology (UIJRT), 2(8), pp.181-191.

Abstract

Normally, there are obstacles in implementing and formulating strategies in PPP projects, so business entities need to know what are the critical factors in PPP projects. Therefore, this study aims to identify and obtain critical factors in PPP projects, especially to determine the potential of Business Entities in railway projects and railway projects both with solicited and unsolicited schemes in accordance with projects announced by the Government to use the PPP scheme. This study uses literature analysis to obtain variables derived from Law No. 23 of 2007 concerning Railways, Presidential Regulation No. 38 of 2015 concerning Government Cooperation with Business Entities in the Provision of Infrastructure, Regulation of the Minister of PPN No 4 of 2015 and its amendments concerning Procedures for Implementing Government Cooperation with Business Entities in the Provision of Infrastructure, as well as distributing questionnaires to obtain primary data. The results of this study are that the government’s goal is that 64% of project financing in 2030 will come from alternative financing, one of which is through a solicited or unsolicited PPP scheme. Business entities have the opportunity to initiate projects that are registered in the government’s plan as one of the requirements of the PPP scheme. However, there are 10 critical factors that significantly affect the railway project with the PPP scheme, namely land acquisition, government support, government guarantees, infrastructure development, railway infrastructure – rail lines, network master plans with other modes, railway infrastructure – rail operation facilities, feasibility studies, railway master plans, and PJPK. In addition, legal and institutional aspects influence the solicited PPP project scheme.

Keywords: PPP projects, infrastructure, railway projects.

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