DOI: https://doi.org/10.14710/ijpd.7.1.21-32

Critical Risk Factors of PPP Water Supply Project in Indonesia (Case Study: West Semarang Drinking Water Supply Project)

*David Raymond Parlindungan  -  Ministry of Investment/ BKPM, Indonesia
Rukuh Setiadi orcid scopus publons  -  Department of Urban and Regional Planning, Universitas Diponegoro, Indonesia
Marcela López  -  Department of Urban Management, Technische Universität Berlin, Germany
Received: 14 Jan 2022; Published: 28 Feb 2022.
Editor(s): Ninik Suhartini, Ph.D

Citation Format:
Abstract

The increasing need for water cannot be denied, given the growing population and standard of living. Therefore, the Government seeks to involve the private sector through the Public-Private Partnership (PPP) scheme in the West Semarang Drinking Water System project to overcome the cost of providing a significant investment. In 2012 the West Semarang Drinking Water Supply Project (WS-DWSS) was developed by the Government. But in 2015, the project was stopped due to changes in the Law of the Republic of Indonesia Number 7 of 2004 concerning Water Resources. PPP schemes in the water sector are relatively new in Indonesia and often face many challenges in their implementation. Through the lens of a theoretical framework and by taking a qualitative and quantitative approach based on primary and secondary data, this thesis assesses the critical risk factors during project implementation in the perception of the public and private sectors. This thesis shows that the both sectors agree that there are 3 most critical risks for drinking water projects: availability of raw water (continuity/quantity), natural disasters, tariff setting & demand projection error. However, the two sectors also have different perceptions of critical risk factors. This difference shows that the two sectors have distinct views and goals as part of a collaborative project. By knowing the similarities and differences, mitigation efforts can be made to minimize the risk of drinking water projects with the PPP scheme.

Fulltext View|Download Email colleagues
Keywords: critical risk factors; public-private partnership; risk perception; Semarang; water supply

Article Metrics:

Article Info
Section: Articles
Language : EN
  1. ADB. (2021). Public–private partnership monitor: Indonesia. Asian Development Bank. doi: 10.22617/SGP210069-2
  2. Adiyanti, N., & Fathurrahman, R. (2021). Assessing critical success factors for PPP water project in Indonesia: Lessons from West Semarang. Policy & Governance Review, 5(2), 164. doi: 10.30589/pgr.v5i2.372
  3. Ameyaw, E., & Chan, A. (2015). Evaluating key risk factors for PPP water projects in Ghana: A delphi study. Journal of Facilities Management, 13(2), 133–155. doi: 10.1108/JFM-10-2013-0051
  4. Anasiru, T., & Tahir, S. (2020). The impact of the earthquake on the PDAM Donggala pipeline network in Tanamodindi Village, Palu City [Dampak gempa bumi terhadap jaringan pipa PDAM Donggala di Kelurahan Tanamodindi Kota Palu]. Siimo Engineering, 4(I), 8
  5. Anhari, I. (2021). The KPK's impetus for regional asset management resulted in 12,310 land certificates belonging to the local government [Dorongan KPK pada tata kelola aset daerah berbuah 12.310 sertifikat tanah jadi milik Pemda]. RMOL.ID, p. 4
  6. BPS Provinsi Jawa Tengah. (2019). Statistics of clean water in Central Java Province [Statistik air bersih Provinsi Jawa Tengah]. Badan Pusat Statistik
  7. Chan, A. P. C., Lam, P. T. I., Wen, Y., Ameyaw, E. E., Wang, S., & Ke, Y. (2015). Cross-sectional analysis of critical risk factors for PPP water projects in China. Journal of Infrastructure Systems, 21(1), 04014031. doi: 10.1061/(ASCE)IS.1943-555X.0000214
  8. Chendra, F., & Chandra, H. (2014). Model of the causes and effects of delays in construction projects in Surabaya [Model faktor-faktor penyebab dan dampak keterlambatan proyek konstruksi di Surabaya]. 3(1), 7
  9. Cooper, D. (2005). Project risk management guidelines: Managing risk in large projects and complex procurements. West Sussex, England ; Hoboken, NJ: J. Wiley
  10. Diskominfo Jateng. (2017). Study landslide mitigation in Manyaran Semarang, this is a recommendation from the Central Java Provincial Government [Kaji mitigasi longsor di Manyaran Semarang, ini rekomendasi Pemprov Jateng]
  11. Ditjen PI PUPR. (2010). Risk profile drinking water supply system Patimban [Profil risiko SPAM Patimban]. Kementerian Pekerjaan Umum
  12. Dwi Hatmoko, J. U., & Susanti, R. (2017). Risk management of West Semarang water supply PPP project: Public sector perspective. IPTEK Journal of Proceedings Series, 0(1), 48. doi: 10.12962/j23546026.y2017i1.2191
  13. Enggraini, F. (2021). Governance of the operation of the drinking water supply system through cooperation between the government and business entities [Tata kelola penyelenggaraan sistem penyediaan air minum melalui kerja sama pemerintah dan badan usaha]. 174
  14. Grimsey, D., & Lewis, M. (2002). Evaluating the risks of public private partnerships for infrastructure projects. International Journal of Project Management, 20(2), 107–118. doi: 10.1016/S0263-7863(00)00040-5
  15. Hadipuro, W. (2010). Indonesia’s water supply regulatory framework: Between commercialisation and public service? 3(3), 17
  16. Hansen, R. (2019). Development of the planning and preparation stages of the project in the process of the government cooperation scheme with business entities (Case study on drinking water supply system projects) [Pengembangan tahap perencanaan dan penyiapan proyek pada proses skema kerjasama pemerintah dengan badan usaha (Studi kasus pada proyek sistem penyediaan air minum)]
  17. Husnullah, P., & Suryanto, P. (2010). A comparative review of quantitative VFM methodology for PPP infrastructure project in Indonesia and Australia
  18. Likhitruangsilp, V., Do, S. T., & Onishi, M. (2017). A comparative study on the risk perceptions of the public and private sectors in public-private partnership (PPP) transportation projects in Vietnam. Engineering Journal, 21(7), 213–231. doi: 10.4186/ej.2017.21.7.213
  19. Martanti, A. (2019). Analysis of the causes of contract change orders and their impact on contractor performance in government construction projects [Analisis faktor penyebab contract change order dan pengaruhnya terhadap kinerja kontraktor pada proyek konstruksi pemerintah]. Rekayasa Sipil, 7(1), 32. doi: 10.22441/jrs.2018.v07.i1.03
  20. Melinda, F. S., Rudiyanti, S., & Haeruddin, H. (2019). Water pollution status of Jatibarang Reservoir, Semarang City in various activities allocation [Status pencemaran perairan Waduk Jatibarang Kota Semarang pada berbagai kegiatan peruntukan]. Management of Aquatic Resources Journal (MAQUARES), 8(3), 118–125. doi: 10.14710/marj.v8i3.24245
  21. Naviandri. (2021). PDAM Tirtawening Bandung is starting to have trouble supplying clean water [PDAM Tirtawening Bandung mulai kesulitan suplai air bersih]. Media Indonesia
  22. Nemoto, T., & Beglar, D. (2014). Developing likert-scale questionnaires
  23. Pangeran, H. (2012). Risk management practices in drinking water service providers: Survey in several places in Indonesia [Praktek manajemen risiko pada penyedia layanan air minum: Survey di beberapa tempat di Indonesia]. Prosiding Seminar Nasional Aplikasi Teknologi Prasarana Wilayah (ATPW), 12
  24. PMI. (2013). A Guide to the project management body of knowledge (PMBOK® Guide) Fifth Edition
  25. Pribadi, S., & Pangeran, M. H. (2007). Important risks on public-private partnership scheme in water supply investment in Indonesia
  26. PT PII. (2020). Acuan Alokasi Risiko
  27. Qian, N., House, S., Wu, A., & Wu, X. (2020). Public–private partnerships in the water sector in China: A comparative analysis. International Journal of Water Resources Development, 36(4), 631–650. doi: 10.1080/07900627.2019.1685951
  28. Rafaat, R., Osman, H., Georgy, M., & Elsaid, M. (2020). Preferred risk allocation in Egypt’s water sector PPPs. International Journal of Construction Management, 20(6), 585–597. doi: 10.1080/15623599.2019.1703087
  29. Sigijateng. (2019). On an inspection to PDAM Tirta Moedal, Commission B questioned the progress of the West Semarang SPAM project [Sidak ke PDAM Tirta Moedal, Komisi B pertanyakan progres proyek SPAM Semarang Barat]. Retrieved from https://sigijateng.id/2019/sidak-ke-pdam-tirta-moedal-komisi-b-pertanyakan-progres-proyek-spam-semarang-barat/
  30. Sutantiningrum, K., & Utami, S. (2019). Risk analysis of the Wosusokas Regional SPAM PPP Project, Central Java Province—The government's perspective [Analisis risiko proyek KPBU SPAM Regional Wosusokas Provinsi Jawa Tengah—Perspektif pemerintah]. 16(3), 10
  31. Sy, D. T., Likhitruangsilp, V., Onishi, M., & Nguyen, P. T. (2017). Impacts of risk factors on the performance of public-private partnership transportation projects in Vietnam. ASEAN Engineering Journal, 7(2), 30–52. doi: 10.11113/aej.v7.15520
  32. Wibowo, A., & Mohamed, S. (2008). Perceived risk allocation in public-private-partnered (PPP) water supply projects in Indonesia
  33. Wibowo, A., & Mohamed, S. (2010). Risk criticality and allocation in privatised water supply projects in Indonesia. International Journal of Project Management, 28(5), 504–513. doi: 10.1016/j.ijproman.2009.08.003
  34. Wibowo, R. (2021). Government contracts: Concepts, types, developments in regulations and review of decisions [Kontrak pemerintah: Konsep, ragam, perkembangan regulasi dan kajian putusan]. Prenada Media Group
  35. Yolandha, F. (2021). Adjustment of toll rates gives certainty to investors [Penyesuaian tarif tol beri kepastian pada investor]. Retrieved from https://republika.co.id/berita/ekonomi/korporasi/qn0fey370/penyesuaian-tarif-tol-beri-kepastian-pada-investor

Last update:

No citation recorded.

Last update:

No citation recorded.