Essay About Ppp

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Abstract: In light to achieve success in Indonesia’s infrastructure projects, increasing awareness and creating confidence towards the public-private partnership (PPP) method is such a greatest way that needs to be applied in improving the Indonesia construction industry. PPP have become an important factor in construction industry area because of the advantages that will be obtained in the future. Nevertheless, lack of information and less attention of PPP by the Indonesian people may give negative impact towards implementing of PPP system. In fact, proper explaining and good advertising of these processes and procedures could improve their understanding and increasing knowledge of Indonesian people in this procurement system. This paper aims to study the PPP concept that been applied in Indonesia which focusing in public and private sector, ways…show more content…
There are because of lack of transparency on how projects are selected and prioritized as PPP. PPP become the last option that used for lower priority projects because of the financing that they often prefer to use public budget funds or international grants, which are much easier to administer. Lack of information and skills in the government contracting agencies may affect the flow of PPP system to interact and negotiate with private investors.
Governments in most developing countries face the challenge to meet the growing demand for new and better infrastructure services. The government of Indonesian also had shown a strong commitment to improve the infrastructure development by introducing the legal concept of PPP in their construction industry.
PPP have become attractive to governments as an off-budget mechanism for infrastructure development because of;
• It can enhance the supply of much-needed infrastructure services.
• It may not require any immediate cash
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