Local Government Challenges’ to Implement Public Private Partnership Projects in Indonesia

Abstract

This paper aims is to analyze several challenges’ those faced by local governments in Indonesia, including its provinces, districts and cities, in implementing the Public Private Partnership (PPP) scheme. The analysis is focused on 3 challenges, as follows: 1) budget; 2) regulations (Act Number 23 of 2014 concerning Regional Government, Government Regulation Number 27 of 2014 concerning Government Asset Management and Presidential Regulation Number 38 of 2015 concerning Public and Private Partnership for Provision of Infrastructure), and 3) the party that involve on PPP projects. Therefore, some of the developed recommendations are expected to be solution for the local government in addressing these challenges.