Implementing of Risk Assessment Model for Public Private Partnership (PPP) of Airport Infrastructure Development in Indonesia

Abstract

Infrastructure is one of cause of Indonesian economic growth slowly and competitiveness more weakness. Limitation of Government’s budget in building of the airport infrastructure development drives the project implementation to the Government cooperation scheme between public and private sectors known as Public Private Partnership (PPP), whereas PPP in Indonesian airport infrastructure development is relatively recent issue. The purpose of the study are to develop the conceptual model of the assessment and risk response, to analyze the risk characteristics, and to analyze the risk assessment and response of Public Private Partnership (PPP) for Indonesian airport infrastructure. The research data was derived from various airports in Indonesia. Interview and survey had been conducted with several institutions from primary and the secondary data both government and private institutions, namely the General Director of Air Transportation of Transportation Department, Airport Authority, Central Bureau of Statistics, PT Angkasa Pura 1st and 2nd . Analytical tools used in this research were Probability Impact Matrix. Conceptual model of risk assessment of PPP for airport infrastructure in Indonesia is an approach model of risk management that has been developed completely by adding risk allocation and risk mitigation strategies. The results indicated that the assessment analyze of the risk exist at the level of the category of ‛extreme’ and ‛high’ of four levels of the available categories.