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Government-led critical success factors in PPP infrastructure development

Andreas Wibowo (Agency for Research and Development, Indonesian Ministry of Public Works, Kabupaten Bandung, Indonesia)
Hans Wilhelm Alfen (Faculty of Civil and Structural Engineering, Bauhaus University in Weimar, Weimar, Germany)

Built Environment Project and Asset Management

ISSN: 2044-124X

Article publication date: 2 February 2015

Abstract

Purpose

The purpose of this paper is to identify 30 government-led critical success factors (CSFs) from both the meso and micro levels in public-private partnership (PPP) infrastructure development, measured the importance of these factors, and evaluated the government performance within the Indonesian context.

Design/methodology/approach

The authors used weighted gap analysis, the Mann-Whitney test, and the Holland and Copenhaver procedure to support the analysis.

Findings

The agreement-adjusted mean scores suggest that the identified CSFs are essential, but that these CSFs underperform in Indonesia. The tests indicated that the gap between performance and importance was significant on both the individual and aggregate level, and no respondent-background bias was observed in the data sets.

Practical implications

This paper provides valuable information for prospective international investors who might be interested in alternative PPP investment opportunities in Indonesia.

Originality/value

This paper enriches the existing body of knowledge on Indonesia’s PPP activities. This is important as, despite the fact that Indonesia offers one of the largest opportunities in Asia for investment in the national infrastructure sector, studies on Indonesia’s PPPs are rarely reported in the literature. This paper also offers a simple, practical, and replicable approach with a sound theoretical basis that can assist governments in identifying and evaluating PPP-specific determinant factors under their control, as well as in measuring their performance on these factors.

Keywords

Acknowledgements

The first author is indebted to the Alexander von Humboldt Foundation for providing a post-doctoral fellowship under the Georg-Forster for Experienced Researchers program. This paper was completed during the first author’s second research stay at the Chair of Construction Economics at the Bauhaus University in Weimar.

Citation

Wibowo, A. and Alfen, H.W. (2015), "Government-led critical success factors in PPP infrastructure development", Built Environment Project and Asset Management, Vol. 5 No. 1, pp. 121-134. https://doi.org/10.1108/BEPAM-03-2014-0016

Publisher

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Emerald Group Publishing Limited

Copyright © 2015, Emerald Group Publishing Limited