Master in Public Administration Diponegoro University
Abstract
Infrastructure development in Indonesia is among the most crucial public
basic needs which should be met by the government, especially related to the
characteristics of infrastructure investment which is categorized into non-recovery
investment or investment in which the investors should not expect for the return.
In 2005-2009 with 6.6% per year of economic growth, the government has to
invest 700-1.300 billion rupiahs for infrastructure development, while the State
Budget and the banks in the country could only provide 500 billion rupiahs.
Therefore, financial gap then exist. To overcome this problem, the government
should organize public private partnership with private sector aside from finding
loan from other countries or donors as an effort of financing public service in infrastructure developmen
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