Not Privatization but Partnership: Government Policy in Providing Public Service Infrastructure in Indonesia

Sugeng Suharto, Sri Suharti, Untung Muhdiarto, Londa Very Yohanes, Sam Ratulangi

Abstract

This study aims to determine the use of partnership patterns by the Indonesian government in providing public service infrastructure. The method used in this research is exploration; the writer examines the facts in-depth, then analyzes them with the relevant theoretical approach. The results show that this partnership puts forward the Tripatrit concept, which protects the interests of the state, corporations, and society without superiority. From 2015 to 2016, infrastructure development increased by 60% (154.7 to 256.1 Trillion) and by 71% (269.1 - 379.7 trillion) from 2017 to 2018. In addition, this study shows that the concept of Public-Private Partnerships is based on the equity in the provision of public service infrastructure to the private sector through State-Owned Enterprises. Therefore, a cooperation agreement was made by the government in collaboration with the private sector. That is what is called Government Cooperation with Business Entities, not privatization. The government regulates that the private sector does not exercise monopoly, so common interests between the government, society and companies are established. This partnership pattern is right in Indonesia, not privatization.

 

 

Keywords: privatization, partnership, government cooperation with business entities.

 

 

 


Full Text:

PDF


References


SUHARTO S. Public and Private Organization Partnership in Providing Public Service Infrastructure: A Study about Public-Private Partnership at the Modern Market in Bengkulu City. Public Policy and Administration Research, 2015, 5(8): 58-62. https://www.iiste.org/Journals/index.php/PPAR/article/view/24947/25550

DOMBERGER S., & FERNANDEZ P. Public-Private Partnership for Service Delivery. London School Business Review, 1999, 10(4): 29-39. https://doi.org/10.1111/1467-8616.00117

JONAIDI D. P. Telaah Terhadap Kebijakan Privatisasi BUMN di Indonesia. University of Bengkulu Law Journal, 2019, 4(1): 1-18. https://doi.org/10.33369/ubelaj.4.1.1-18

MAHSYAR A. Public Private Partnership: Kolaborasi Pemerintah dan Swasta Dalam Pengelolaan Aset Publik di Kota Makassar. Jurnal Administrasi Publik, 2015, 12(1): 71-80. https://journal.unpar.ac.id/index.php/JAP/article/view/1502

ABBAS M. Y. Public Private Partnership dalam Pembangunan dan Pengelolaan Suncity Plaza Sidoarjo, Model Perjanjian Build Operate Transfer (BOT) antara Pemerintah Sidoarjodengan PT Indraco. Universitas Airlangga, Surabaya, Indonesia, 2014. http://repository.unair.ac.id/72514/

BULT-SPIERING W. D., & DEWULF G. P. M. R. Strategic Issues in Public-Private Partnerships: An International Perspective. Blackwell Publishing Ltd, Oxford, UK, 2006.

KURNIAWATI S. L., & LESTARI W. Studi atas Kinerja BUMN setelah Privatisasi. Jurnal Keuangan dan Perbankan, 2008, 12(2): 263-272. https://media.neliti.com/media/publications/108853-ID-studi-atas-kinerja-bumn-setelah-privatis.pdf

LABIB R. S. Privatisasi Dalam Pandangan Islam. Wadi Press, Jakarta, Indonesia, 2005.

BASTIAN I. Privatisasi di Indonesia: Teori dan Implementasi. Salemba Empat, Jakarta, Indonesia, 2001.

NANANG Y., & DUMADI T. R. Privatisasi Badan Usaha Milik Negara (BUMN), Eksistensi, dan Kinerja Ekonomi Nasional dalamsistem Ekonomi Pasar. Jurnal Ekonomi dan Bisnis, 2007, 3(2): 73-86. https://dx.doi.org/10.31942/akses.v2i3.501

MEGGINSON W. L., & SUTTER N. L. Privatisation in Developing Countries. Corporate Governance. An International Review, 2006, 14(4): 234-265. https://doi.org/10.1111/j.1467-8683.2006.00505.x

SHI W., & SUN J. The Impact of Privatization on Efficiency and Profitability: Evidence from Chinese Listed Firms, 2001–2010. Economic of Transition and Institutional Change, 2016, 24(3): 393-420. https://doi.org/10.1111/ecot.12094

GUO K., & YAO Y. Causes of Privatization in China: Testing Several Hypotheses. Economic of Transition and Institutional Change, 2005, 13(2): 211-238. https://doi.org/10.1111/j.1468-0351.2005.00221.x

MERCHILLE J., & MURPHY E. Conceptualising European Privatisation Processes after the Great Recession. Antipode. A Radical Journal of Geography, 2016, 48(3): 685-704. https://doi.org/10.1111/anti.12212

SZENTPETERI A., & TELEGDY A. Political Objectivities and Privatization Decisions: Selection of Firm for Privatization of Long-Term State Ownership in Romania. Economics of Transition, 2012, 20(2): 299-313. https://dx.doi.org/10.1111/j.1468-0351.2011.00424.x

MYDDELTON D. R. The British Approach to Privatisation. Economic Affairs, 2014, 34(2): 129-138. https://doi.org/10.1111/ecaf.12063

FROST N. A., TRAPASSI J., and HEINZ S. Public Opinion and Correctional Privatization. Criminology & Public Policy, 2019, 18(2): 457-476. https://doi.org/10.1111/1745-9133.12441

SANDS V., O'NEILL D., and HODGE G. Cheaper, Better, and More Accountable? Twenty-Five Years of Prisons Privatisation on Victoria. Australian Journal of Public Administration, 2019, 78(4): 577-595. https://doi.org/10.1111/1467-8500.12384

STOJAN J. Privatisation Failure and Failure to Privatize: The Slovene Example. Economic Affairs, 2014, 34(2): 270-281. https://doi.org/10.1111/ecaf.12084

STAGNARO C. Privatisation in the EU Energy Sector: The Never-Ending Story. Economic Affairs, 2014, 34(2): 238-253. https://dx.doi.org/10.1111/ecaf.12081

HANGGRAENI D. Apakah Privatisasi BUMN Solusi yang Tepat Dalam Meningkatkan Kinerja? Manajemen dan Usahawan Indonesia, 2009, 6: 27-33.

BENNETT A. Sustainable Public/Private Partnership for Public Service Delivery. Development Journal, 2009, 3(2): 193-199. https://doi.org/10.1111/j.1477-8947.1998.tb00728.x

WORBY E. Privatization. The International Encyclopedia of Anthropology. John Wiley & Sons, Hoboken, USA, 2012: 1-11. https://doi.org/10.1002/9781118924396.wbiea2366

FRAJA D. G., & ROBERT B. M. Privatization in Poland: What Was the Government Trying to Achieve? Economic of Transition and Institutional Change, 2009, 17(3): 531-557. https://dx.doi.org/10.1111/j.1468-0351.2009.00356.x

BENNETT A. Sustainable Public/Private Partnership for Public Service Delivery. Development Journal, 2009, 3(2): 193-199. https://doi.org/10.1111/j.1477-8947.1998.tb00728.x

LEMBER V., PETERSEN O. H., SCHERRER W., and ÅGREN R. Understanding the Relationship Between Infrastructure Public-Private Partnership and Innovation. The Performance and Potential of Public Private Partnerships, 2019, 90(2): 371-391. https://doi.org/10.1111/apce.12232

MERCHILLE J., & MURPHY E. Conceptualising European Privatisation Processes after the Great Recession. Antipode. A Radical Journal of Geography, 2016, 48(3): 685-704. https://doi.org/10.1111/anti.12212

HODGE G., & GREVE C. Public Private Partnership: Governance Scheme or Language Game? Australian Journal of Public Administration, 2010, 69(1): 8-22. https://doi.org/10.1111/j.1467-8500.2009.00659.x

SEHGAL R., & DUBEY A. M. Identification of Critical Success Factors for Public Private Partnership Projects. Journal of Public Affairs, 2019, 19(4). https://doi.org/10.1002/pa.1956

HOPPE E. I., & SCHMITZ P. W. How (Not) to Foster Innovation in Public Infrastructure Projects. The Scandinavian Journal of Economics, 2019, 123(1): 238-266. https://doi.org/10.1111/sjoe.12393

CURTAIN K., & BETTS J. Busting Some of the Public Private Partnership Myths from a Government Perspective. Australian Journal of Public Administration, 2017, 76(3): 283-287. https://doi.org/10.1111/1467-8500.12264

ENGEL E., FISCHER R., and GALETOVIC A. The Economics of Public-Private Partnerships: A Basic Guide. Cambridge University Press, Cambridge, UK, 2014.

SUHARTO S. Public and Private Organization Partnership in Providing Public Service Infrastructure: A Study about Public-Private Partnership at the Modern Market in Bengkulu City. Public Policy and Administration Research, 2015, 5(8): 58-62. https://www.iiste.org/Journals/index.php/PPAR/article/view/24947/25550.

HILL A. Foreign Infrastructure Investment in Chile: The Success of Public-Private Partnerships through Concession Contracts. Northwestern Journal of International Law & Business, 2011, 32(1): 164-190. https://scholarlycommons.law.northwestern.edu/njilb/vol32/iss1/5/

CHANG H. J. Bad Samaritans: The Myth of Free Trade and the Secret History of Capitalism. NY: Bloomsbury Press, New York, USA, 2008.

LEMBER V., PETERSEN O. H., SCHERRER W., and ÅGREN R. Understanding the Relationship Between Infrastructure Public-Private Partnership and Innovation. The Performance and Potential of Public Private Partnerships, 2019, 90(2): 371-391. https://doi.org/10.1111/apce.12232

SZENTPETERI A., & TELEGDY A. Political Objectivities and Privatization Decisions: Selection of Firm for Privatization of Long-Term State Ownership in Romania. Economics of Transition, 2012, 20(2): 299-313. https://dx.doi.org/10.1111/j.1468-0351.2011.00424.x

CURTAIN K., & BETTS J. Busting Some of the Public Private Partnership Myths from a Government Perspective. Australian Journal of Public Administration, 2017, 76(3): 283-287. https://doi.org/10.1111/1467-8500.12264

UTAMA D. Prinsip dan Strategi Penerapan Public Private Partnership Dalam Penyediaan Infrastruktur Transportasi. Jurnal Sains dan Teknologi Indonesia, 2010, 12(3): 145-151. https://dx.doi.org/10.29122/jsti.v12i3.857

ALFEN H. W., KALIDINDI S. N., OGUNLANA S., WANG S., ABEDNEGO M. P., FRANK-JUNGBECKER A., JAN Y.-C. A., KE Y., LIU Y., SINGH L., and ZHAO G. F. Public-Private Partnership in Infrastructure Development: Case Studies From Asia and Europe. Verlag der Bauhaus-Universität, Weimar, Germany, 2009. http://hdl.handle.net/10419/56429

MINISTRY OF FINANCE. Sinergi Kerjasama Pemerintah dengan pihak Swasta. Ministry of Finance, 2010. https://www.kemenkeu.go.id/

MINISTRY OF FINANCE. Pola Kerjasama Pemerintah dengan pihak Swasta. Ministry of Finance, 2010. https://www.kemenkeu.go.id/

SUSANTONO B., & BERAWI M. A. Perkembangan Kebijakan Pembiayaan Infrastruktur Transportasi Berbasis Kerja Sama Pemerintah Swasta di Indonesia. Jurnal Transportasi, 2012, 12(2): 93-102. https://doi.org/10.26593/jtrans.v12i2.475.%25p

BENNETT A. Sustainable Public/Private Partnership for Public Service Delivery. Development Journal, 2009, 3(2): 193-199. https://doi.org/10.1111/j.1477-8947.1998.tb00728.x

YESCOMBE E. R. Public Private Partnerships for Infrastructure. 2nd edition. Elsevier, Oxford, UK, 2018.

PALMA D. A., LINDSEY R., and PROOST S. Investment and the Use of Tax Toll Revenues in the Transport Sector, Volume 19. 1st edition. JAI Press, Stamford, USA, 2007.

SEHGAL R., & DUBEY A. M. Identification of Critical Success Factors for Public Private Partnership Projects. Journal of Public Affairs, 2019, 19(4). https://doi.org/10.1002/pa.1956

PATTBERG P. Public Private Partnerships in Global Climate Governance. Wires Climate Change, 2010, 1(1): 279-287. https://doi.org/10.1002/wcc.38

REYNAERS A. M. Public Value in Public Private Partnerships. Public Administration Review, 2014, 74(1): 31-50. https://doi.org/10.1111/puar.12137

YESCOMBE E. R. Public-Private Partnerships: Principles of Policy and Finance. Elsevier, Oxford, UK, 2007.

PATTBERG P. Public Private Partnerships in Global Climate Governance. Wires Climate Change, 2010, 1(1): 279-287. https://doi.org/10.1002/wcc.38

POOLE J. R. Privatization: A New Transportation Paradigm. The Annals of American Academy of Political and Social Science, 1997, 553(1). https://doi.org/10.1177%2F0002716297553001009

REYNAERS A. M. Public Value in Public Private Partnerships. Public Administration Review, 2014, 74(1): 31-50. https://doi.org/10.1111/puar.12137

MINISTRY OF FINANCE. Directorate General of Budget Financing and Risk Management. https://www.djppr.kemenkeu.go.id/site/home

GRIMSHAW D., VINCENT S., and WILLMOTT H. Going Privately: Partnership and Outsourcing in UK Public Services. Public Administration, 2002, 80(3): 475-502. https://doi.org/10.1111/1467-9299.00314

KOPPENJAN J. Public-Private Partnership and Mega-Projects. Decision-Making on Mega-Projects. Edward Elgar Publishing, Cheltenham, UK, 2008. https://doi.org/10.4337/9781848440173.00017

LOVE P. E. D., MISTRY D., and DAVIS P. R. Price Competitive Alliance Projects: Identification of Success Factors for Public Clients. Journal of Construction Engineering and Management, 2010, 136(9): 947-956. https://dx.doi.org/10.1061/(asce)co.1943-7862.0000208

DELOITTE RESEARCH. Closing the Infrastructure Gap: The Role of Public Private Partnerships. Deloitte Services LP, London, UK, 2006. https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/Finance/Corporate%20Finance/2006_closing_infrastructure_gap_deloitte_ireland.pdf

FOSLER R. S., & BERGER R. A. Public-Private Partnership in American Cities: Seven Case Studies. Lexington Books, Lanham, USA, 1982.

FLINDERS M. The Politics of Public–Private Partnerships. The British Journal of Politics and International Relations, 2004, 7(2): 215-239. https://doi.org/10.1111%2Fj.1467-856X.2004.00161.x

GRIMSEY D., & LEWIS M. K. Public Private Partnerships: The Worldwide Revolution in Infrastructure Provision and Project Finance. Edward Elgar Publishing Cheltenham, UK, 2007.

TREASURY TASK FORCE. Partnerships for Prosperity: The Private Finance Initiative. HM Treasury, London, UK, 1998.

TAKASHIMA R., YAGI K., and TAKAMORI H.. Government Guarantees and Risk Sharing in Public-Private Partnerships. Review of Financial Economics, 2010, 19(2): 78-83. https://doi.org/10.1016/j.rfe.2009.10.001 [64] GUASCH L. Granting and Renegotiating Concessions: Doing It Right. The International Bank for Reconstruction and Development, Washington DC, USA, 2004.


Refbacks

  • There are currently no refbacks.