ABSTRACT
Infrastructure is one of the most important factors in a country's development. That's why the Government of Indonesia (GoI) defines infrastructure as one of its focuses to develop the country. However, GoI will not be able to finance the entire infrastructures by itself, so it needs other financing schemes. One of other financing schemes is Public Private Partnership (PPP). PPP also has some schemes, such as user charge and availability payment (AP). This study wants to compare the most suitable scheme in developing infrastructure in Indonesia with the case study on Palapa Ring Project. The schemes being compared in this study are government expenditure scheme, PPP with user charge, and PPP with AP. The triangulation research strategy combining literature review, FGD and financial modeling is adopted for this research. It revealed that PPP with AP is the most appropriate model especially for the project that is commercially marginal and has high demand risk.
Keywords
availability payment; palapa ring project; public private partnership; financial modelling; project risk analysis