A Critical Perspective of the Indonesian Institutional Framework for PPP Toll Roads

Rostiyanti, Susy, Coffey, Vaughan, Pangeran, M.H., & Tamin, R. (2013) A Critical Perspective of the Indonesian Institutional Framework for PPP Toll Roads. In Akintoye, Akintola, Liyanage, Champlka, & Goulding, Jack (Eds.) PPP International Conference 2013 - Body of Knowledge. University of Central Lancashire, Preston, UK, pp. 415-422.

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The development of toll roads in Indonesia started around 1978. Initially, the management and development of toll roads sat directly under the Government of Indonesia (GoI) being undertaken through PT JasaMarga, a state owned enterprise specifically established to provide toll roads. Due to the slow growth and low capability of toll roads to fulfil infrastructure needs in the first ten years of operation (only 2.688kms/year), GoI changed its strategy in 1989 to one of using private sector participation for roads delivery through a Public Private Partnership (PPP) scheme. In this latter period, PT JasaMarga had two roles, both as regulator on behalf of the private sector as well as being the operator. However, from 1989 to 2004 the growth rate of toll roads actually decreased further to 2.300kms/year. Facing this challenge of low growth rate of toll roads, in 2004GoI changed the toll road management system and the role of regulator was returned to the Government through the establishment of the Toll Road Regulatory Agency (BPJT). GoI also amended the institutional framework to strengthen the toll road management system. Despite the introduction of this new institutional framework, the growth of toll roads still showed insignificant change. This problem in toll road development has generated an urgent need for research into this issue. The aim of the research is to understand the performance of the new institutional framework in enhancing PPP procured toll road development. The methodology of the research was to undertake a questionnaire survey distributed to private sector respondents involved in toll road development. The results of this study show that there are several problems inherent in the institutional framework, but the most significant problem comes from the uncertainty of the function of the strategic executive body in the land expropriation process.

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ID Code: 62409
Item Type: Book Chapter
Keywords: toll roads, Indonesia, PPP, institutional framework
ISBN: 9781901922912
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200) > Building Construction Management and Project Planning (120201)
Divisions: Current > Schools > School of Civil Engineering & Built Environment
Current > QUT Faculties and Divisions > Science & Engineering Faculty
Copyright Owner: Copyright 2013 Please consult the authors
Deposited On: 12 Sep 2013 01:25
Last Modified: 22 Nov 2015 15:12

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