Departmental Bulletin Paper Applicability of Private Finance Initiative and Public Private Partnership to Public School Development in Indonesia

Agseyoga, Alfonsus Sri  ,  Deguchi, Chikashi  ,  Anwar, M. Ruslin  ,  Wijatmiko, Indradi  ,  Ueda, Kazuo

44pp.125 - 134 , 2015-07-31 , 宮崎大学工学部
The population of Indonesia has been increasing every year, which requires that its economic and social infrastructure be developed. England (UK) and Japan have extensive experience with school facility projects as a part of their social infrastructure through Private Finance Initiative (PFI) systems, which are part of the Public Private Partnership (PPP). Infrastructure development by PPP has been planned and implemented in Indonesia, but school maintenance is not included in this subject. Therefore, this study investigates the ratio of the government budget for school maintenance and their operations, and discusses the differences between public schools with a conventional funding system and public schools with PFI system. In this research, data are collected through literature, direct survey, and interviews to obtain the system of education and financing related to school facilities. The recommended contract types are also analyzed for use in public school development in Indonesia. The analyses reveals that it is necessary for central government to improve and update some policies to include the new funding system under the PFI/PPP system by referring to PFI/PPP in the UK and Japan to introduce a PFI/PPP system into public school development in Indonesia.

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