Implementation of the Government and Business Entity Partnership (KPBU) Policy in Regional Infrastructure Development
DOI:
https://doi.org/10.30659/1s022787Keywords:
Infrastructure, Law, Money, Region, RiskAbstract
This study analyzes the implementation of Public Private Partnership (PPP) policies in regional infrastructure development, emphasizing the legal framework, institutional governance, risk sharing, and public interest protection. While PPPs can expand financing options and leverage the expertise of private entities, they are not automatically more efficient than conventional procurement. The study shows that the success of the scheme is determined by project readiness, long-term fiscal viability, the quality of the feasibility study documents, a competitive partner selection process, risk sharing based on management capabilities, and the capacity of the Project Manager. At the regional level, key challenges include policy continuity, project preparation skills, cross-regional coordination, transparency of payment obligations, and community engagement. The regulatory analysis positions Presidential Regulation Number 38 of 2015 as the basic framework that needs to be read in conjunction with implementing provisions and relevant regional financial regulations. The article recommends strengthening regional PPP units, transparent long-term obligation budgeting, and output-based monitoring and service quality.
Downloads
References
Journals:
Martinus P. Abednego & Stephen O. Ogunlana. Good project governance for proper risk allocation in public–private partnerships in Indonesia. International Journal of Project Management, Vol. 24, No. 7, 2006, 622–634. DOI: https://doi.org/10.1016/j.ijproman.2006.07.010
Geoffrey Aerts et al., Public-private partnerships for the provision of port infrastructure: An explorative multi-actor perspective on critical success factors. The Asian Journal of Shipping and Logistics, Vol. 30, No. 3, 2014, 273–298. DOI: https://doi.org/10.1016/j.ajsl.2014.12.002
Isdian Anggraeny et al., Reconceptualising good faith in Indonesia’s public-private partnership infrastructure contracts: A welfare state perspective. Legality: Jurnal Ilmiah Hukum, Vol. 34, No. 1, 2026, 277–305. DOI: https://doi.org/10.22219/ljih.v34i1.44365
Lutfah Ariana. Public-private partnership pembangunan infrastruktur: Dilema etik dan praktik. Journal of Infrastructure Policy and Management, Vol. 7, No. 1, 2024, 1–12. DOI: https://doi.org/10.35166/jipm.v7i1.54
Kennywan Leo Arischa et al., Collaboration between local government and the private sector in improving public infrastructure. TINGKAP, Vol. 20, No. 1, 2024, article daring. DOI: https://doi.org/10.24036/tingkap.v20i1.129540
Asenar et al., Risk allocation of legal changes in infrastructure provision agreements through public-private partnership schemes. Jurnal Bina Mulia Hukum, Vol. 9, No. 1, 2024, 142–158. DOI: https://doi.org/10.24198/jbmh.v9i1.1669
Pranab Bardhan & Dilip Mookherjee. Decentralisation and accountability in infrastructure delivery in developing countries. The Economic Journal, Vol. 116, No. 508, 2006, 101–127. DOI: https://doi.org/10.1111/j.1468-0297.2006.01049.x
Avin S. Chourasia et al., Critical success factors for development of public-private-partnership airports in India. Journal of Infrastructure Policy and Development, Vol. 5, No. 1, 2021, artikel 1259. DOI: https://doi.org/10.24294/jipd.v5i1.1259
Alessandra Cepparulo et al., Public-private partnership and fiscal illusion: A systematic review. Journal of Infrastructure, Policy and Development, Vol. 3, No. 2, 2019, 288–309. DOI: https://doi.org/10.24294/jipd.v3i2.1157
Carlos Oliveira Cruz & Rui Cunha Marques. Contribution to the study of PPP arrangements in airport development, management and operation. Transport Policy, Vol. 18, No. 2, 2011, 392–400. DOI: https://doi.org/10.1016/j.tranpol.2010.12.001
John Forrer et al., Public–private partnerships and the public accountability question. Public Administration Review, Vol. 70, No. 3, 2010, 475–484. DOI: https://doi.org/10.1111/j.1540-6210.2010.02161.x
Darrin Grimsey & Mervyn K. Lewis. Evaluating the risks of public private partnerships for infrastructure projects. International Journal of Project Management, Vol. 20, No. 2, 2002, 107–118. DOI: https://doi.org/10.1016/S0263-7863(00)00040-5
Aparajita Gupta & Anil Kumar Sharma. The role of institutional and governance factors in public–private partnerships infrastructure investments in emerging economies. Journal of Public Affairs, Vol. 23, No. 4, 2023, e2874. DOI: https://doi.org/10.1002/pa.2874
Graeme A. Hodge & Carsten Greve. Public–private partnerships: An international performance review. Public Administration Review, Vol. 67, No. 3, 2007, 545–558. DOI: https://doi.org/10.1111/j.1540-6210.2007.00736.x
Yongjian Ke et al., Preferred risk allocation in China's public-private partnership (PPP) projects. International Journal of Project Management, Vol. 27, No. 5, 2009, 482–492. DOI: https://doi.org/10.1016/j.ijproman.2008.08.007
Bing Li et al., Critical success factors for PPP/PFI projects in the UK construction industry. Construction Management and Economics, Vol. 23, No. 5, 2005, 459–471. DOI: https://doi.org/10.1080/01446190500041537
Vera Mandasari & Ersa Tri Wahjyuni. Infrastructure development by public-private partnership in Indonesia: A systematic literature review. CSID Journal of Infrastructure Development, Vol. 2, No. 2, 2019, 153–160. DOI: https://doi.org/10.32783/csid-jid.v2i2.90
Henro Nababan. Kajian kesiapan tata kelola pemerintahan daerah pada pelaksanaan KPBU availability payment (AP). Jurnal Proyek Teknik Sipil, Vol. 7, No. 2, 2024, 1–10. DOI: https://doi.org/10.14710/potensi.2024.22420
Suardi Nur et al., Evidence on optimal risk allocation models for Indonesian geothermal projects under PPP contracts. Utilities Policy, Vol. 81, 2023, artikel 101511. DOI: https://doi.org/10.1016/j.jup.2023.101511
Okotie William. Public–private partnerships as a policy tool for local infrastructure development. PERSPEKTIF, Vol. 15, No. 2, 2026, 357–373. DOI: https://doi.org/10.31289/perspektif.v15i2.17198
Robert Osei-Kyei & Albert P. C. Chan. Review of studies on the critical success factors for public–private partnership (PPP) projects from 1990 to 2013. International Journal of Project Management, Vol. 33, No. 6, 2015, 1335–1346. DOI: https://doi.org/10.1016/j.ijproman.2015.02.008
Photis M. Panayides et al., The effect of institutional factors on public–private partnership success in ports. Transportation Research Part A: Policy and Practice, Vol. 71, 2015, 110–127. DOI: https://doi.org/10.1016/j.tra.2014.11.006
Ole Helby Petersen. Evaluating the costs, quality, and value for money of infrastructure public–private partnerships: A systematic literature review. Annals of Public and Cooperative Economics, Vol. 90, No. 2, 2019, 227–244. DOI: https://doi.org/10.1111/apce.12243
Bahtiar Rifai. Implementasi kerja sama pemerintah dan swasta dalam pembangunan infrastruktur sektor air minum di Indonesia. Jurnal Ekonomi dan Pembangunan, Vol. 22, No. 2, 2014, 165–181. DOI: https://doi.org/10.14203/JEP.22.2.2014.165-181
Shiying Shi et al., Examining the interrelationship among critical success factors of public private partnership infrastructure projects. Sustainability, Vol. 8, No. 12, 2016, article 1313. DOI: https://doi.org/10.3390/su8121313
Michael Trebilcock & Michael Rosenstock. Infrastructure public–private partnerships in the developing world: Lessons from recent experience. The Journal of Development Studies, Vol. 51, No. 4, 2015, 335–354. DOI: https://doi.org/10.1080/00220388.2014.959935
Andreas Wibowo & Hans Wilhelm Alfen. Identifying macro-environmental critical success factors and key areas for improvement to promote public-private partnerships in infrastructure: Indonesia's perspective. Engineering, Construction and Architectural Management, Vol. 21, No. 4, 2014, 383–402. DOI: https://doi.org/10.1108/ECAM-08-2013-0078
Jinkook Yang et al., Critical success factors of public–private partnership infrastructure projects from a middle-income country: A comparison with countries in Asia. Journal of Urban Planning and Development, Vol. 150, No. 3, 2024, article daring. DOI: https://doi.org/10.1061/JUPDDM.UPENG-4549
Regulation:
Regulation of the Government Goods/Services Procurement Policy Agency Number 1 of 2025 concerning Procurement Procedures for Cooperation between the Government and Business Entities in the Provision of Infrastructure. Official link
Regulation of the Minister of Home Affairs Number 96 of 2016 concerning Payment for Service Availability in the Framework of Cooperation between Regional Governments and Business Entities in the Provision of Infrastructure in the Regions. Official link
Regulation of the Minister of National Development Planning/Head of the National Development Planning Agency Number 7 of 2023 concerning the Implementation of Cooperation between the Government and Business Entities in the Provision of Infrastructure as amended by Regulation of the Minister of National Development Planning/Head of Bappenas Number 9 of 2025. Official link
Government Regulation Number 12 of 2019 concerning Regional Financial Management. Official link
Government Regulation Number 28 of 2018 concerning Regional Cooperation. Official link
Presidential Regulation Number 38 of 2015 concerning Cooperation between the Government and Business Entities in the Provision of Infrastructure. Official link
Law Number 1 of 2004 concerning State Treasury. Official link
Law Number 17 of 2003 concerning State Finance. Official link
Law Number 23 of 2014 concerning Regional Government and its ame
