Private Capital Inducement for the Development of Social Overhead Capital: A Comparative Study of South Korea and Indonesia
사회과학 > 행정학
( By Saiful Islam )
한국정책학회 추계학술발표논문집 2013년, 제2013권 1127~1142페이지(총16페이지)
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    Public infrastructure provision in several latest decades is not provided solely by public sector, but it also involve more intensive private sector. Arrangement of public and private sector to provide public infrastructure is called PPP (Public Private Partnership). In global arena, trend of private contribution on PPP program increases significantly, even though the PPP as a partnership model still developing to attain better performance. As a growing concept, PPP has some issues that need to be resolved to contribute more on public goods and services provision. Major issues of PPP arrangement consist of, but not limited, capacity of both public and private sectors, legal and institutional arrangement and financial management treatment. Korea and Indonesia started to induce private sector for infrastructure provision on similar era, however, both countries has different progress. While Indonesia still struggling to overcome common problem on early stage of PPP development such as institutional arrangement, project development facility, guarantee fund, land provision, coordination among agencies, creating profitable market to attract private sector, and capacity building for their public officer; in other side, Korea has passed through managing those problem which recently still faced Indonesia. New challenges of PPP development need to be answered by Korea such as out of government expenditure regulation, maintaining fiscal soundness and sustainability, accounting treatment, lack of competence authority to manage and to monitor service performance, and renegotiation and refinancing as consequence of long term and multifaceted infrastructure projects.
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