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Implementing Toll Road Infrastructure Financing in Indonesia: Critical Success Factors from the Perspective of Toll Road Companies

Author

Listed:
  • Muhammad Fauzan

    (Interdisciplinary School of Management Technology, Institut Teknologi Sepuluh Nopember, Jl. Arif Rahman Hakim, Surabaya 60111, Indonesia)

  • Heri Kuswanto

    (Statistics Department, Faculty of Science and Data Analytics, Institut Teknologi Sepuluh Nopember, Jl. Arif Rahman Hakim, Surabaya 60111, Indonesia)

  • Christiono Utomo

    (Civil Engineering Department, Institut Teknologi Sepuluh Nopember, Jl. Arif Rahman Hakim, Surabaya 60111, Indonesia)

Abstract

Having effective and efficient financing is one of the most critical steps in accelerating public infrastructure development, including toll roads. This study aims to identify critical success factors (CSFs) for implementing toll infrastructure financing in Indonesia. Thirty-three CSFs have been identified from the literature review. A Delphi survey was conducted involving a panel of experts in the infrastructure industry. Based on the survey, it is known that the internal rate of return, affordability, investment decisions, commercial banks, financing costs, interest rate risk, control of cash flow, contract scope, and principles of risk transfer are important factors for implementing toll infrastructure financing in Indonesia. This study fills research gaps by developing a CSF model for successful toll road infrastructure financing in Indonesian PPPs, considering private perspectives and aiming to provide insights for investors and enhance understanding of country profiles in developing countries. The focus on toll road implementation in Indonesia contributes to a comprehensive understanding of CSFs for PPPs in the country.

Suggested Citation

  • Muhammad Fauzan & Heri Kuswanto & Christiono Utomo, 2023. "Implementing Toll Road Infrastructure Financing in Indonesia: Critical Success Factors from the Perspective of Toll Road Companies," IJFS, MDPI, vol. 11(4), pages 1-23, November.
    • Handle: RePEc:gam:jijfss:v:11:y:2023:i:4:p:135-:d:1277186
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    References listed on IDEAS

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    2. Rockart, John F. (John Fralick), 1982. "The changing role of the information systems executive : a critical success factors perspective," Working papers 1297-82. Report (Alfred P, Massachusetts Institute of Technology (MIT), Sloan School of Management.
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