Successful Public Private Partnership Model and Strategy in The Manado-Bitung Toll Road Project

Abstract

Indonesia is speeding up growth by constructing toll roads in several places, one of which is the Manado-Bitung toll road in North Sulawesi. Infrastructure development is carried out through the Public-Private Partnership (PPP) program due to budget constraints. This study aims to examine the success model of public-private partnership for the Manado-Bitung toll road development project and how the efforts and strategies of stakeholders to achieve this success model. This research takes a sample of stakeholders involved in Manado-Bitung toll road PPP, namely from the government, practitioners, academics, and the community. The analysis technique of this research is to use Structural Equation Modelling and SWOT analysis. The results of the study show that the factors that encourage the success of Public-Private Partnership for the Manado – Bitung toll road construction project sequentially are as follows: environmental factors are the most significant factor in explaining the success of toll road PPPs Manado-Bitung, followed by organizational, political, economic, legal, physical, social, risk, and cultural. Stakeholders must carry out efforts and strategies in meeting the factors that drive the success of the Manado-Bitung toll road PPP to reduce significant threats, namely avoiding development in places that have a function of public needs.