Risk analysis of PPP financing for toll road project
The Indonesian Government has limited funds to provide infrastructure facilities for its population of 261 million people, which requires an investment of US$ 6.445 trillion. Only 37% of this can be covered by government funds, necessitating the use of private funds for the remaining 63%. Public-Pri...
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| Format: | Article |
| Language: | English |
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EDP Sciences
2025-01-01
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| Series: | BIO Web of Conferences |
| Online Access: | https://www.bio-conferences.org/articles/bioconf/pdf/2025/10/bioconf_safe24_02009.pdf |
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| author | Suwandairi Y.D. Suratkon A. Amin M. Tsarwan O.T. HJ Wahyu |
| author_facet | Suwandairi Y.D. Suratkon A. Amin M. Tsarwan O.T. HJ Wahyu |
| author_sort | Suwandairi Y.D. |
| collection | DOAJ |
| description | The Indonesian Government has limited funds to provide infrastructure facilities for its population of 261 million people, which requires an investment of US$ 6.445 trillion. Only 37% of this can be covered by government funds, necessitating the use of private funds for the remaining 63%. Public-Private Partnership (PPP) offer a solution for infrastructure development in Indonesia, where the government collaborates with the private sector to provide public infrastructure. However, PPP implementation faces challenges, such as changes in bank financial policies that affect financing schemes. The purpose of this study is to analyze the feasibility and variable risks of project funding through sensitivity analysis. A single case study approach was used to gather data. The results indicate that the Serang-Panimbang toll road project is feasible. Additionally, three parameters are identified as high risk: investment cost, income, and interest rate. The findings of this study are beneficial for the government and construction service actors involved in PPP projects. They also serve as a valuable literature review for academics studying PPPs. |
| format | Article |
| id | doaj-art-c4a18b93464643aba1f7c4c381ac5a45 |
| institution | Kabale University |
| issn | 2117-4458 |
| language | English |
| publishDate | 2025-01-01 |
| publisher | EDP Sciences |
| record_format | Article |
| series | BIO Web of Conferences |
| spelling | doaj-art-c4a18b93464643aba1f7c4c381ac5a452025-02-07T08:20:35ZengEDP SciencesBIO Web of Conferences2117-44582025-01-011590200910.1051/bioconf/202515902009bioconf_safe24_02009Risk analysis of PPP financing for toll road projectSuwandairi Y.D.0Suratkon A.1Amin M.2Tsarwan O.T.3HJ Wahyu4University Tun Hussein Onn MalaysiaUniversity Tun Hussein Onn MalaysiaEngineering Faculty, Universitas Mercu BuanaEngineering Faculty, Universitas Mercu BuanaYayasan Hana Kasih, BogorThe Indonesian Government has limited funds to provide infrastructure facilities for its population of 261 million people, which requires an investment of US$ 6.445 trillion. Only 37% of this can be covered by government funds, necessitating the use of private funds for the remaining 63%. Public-Private Partnership (PPP) offer a solution for infrastructure development in Indonesia, where the government collaborates with the private sector to provide public infrastructure. However, PPP implementation faces challenges, such as changes in bank financial policies that affect financing schemes. The purpose of this study is to analyze the feasibility and variable risks of project funding through sensitivity analysis. A single case study approach was used to gather data. The results indicate that the Serang-Panimbang toll road project is feasible. Additionally, three parameters are identified as high risk: investment cost, income, and interest rate. The findings of this study are beneficial for the government and construction service actors involved in PPP projects. They also serve as a valuable literature review for academics studying PPPs.https://www.bio-conferences.org/articles/bioconf/pdf/2025/10/bioconf_safe24_02009.pdf |
| spellingShingle | Suwandairi Y.D. Suratkon A. Amin M. Tsarwan O.T. HJ Wahyu Risk analysis of PPP financing for toll road project BIO Web of Conferences |
| title | Risk analysis of PPP financing for toll road project |
| title_full | Risk analysis of PPP financing for toll road project |
| title_fullStr | Risk analysis of PPP financing for toll road project |
| title_full_unstemmed | Risk analysis of PPP financing for toll road project |
| title_short | Risk analysis of PPP financing for toll road project |
| title_sort | risk analysis of ppp financing for toll road project |
| url | https://www.bio-conferences.org/articles/bioconf/pdf/2025/10/bioconf_safe24_02009.pdf |
| work_keys_str_mv | AT suwandairiyd riskanalysisofpppfinancingfortollroadproject AT suratkona riskanalysisofpppfinancingfortollroadproject AT aminm riskanalysisofpppfinancingfortollroadproject AT tsarwanot riskanalysisofpppfinancingfortollroadproject AT hjwahyu riskanalysisofpppfinancingfortollroadproject |