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

Muhammad Fauzan, Heri Kuswanto () and Christiono Utomo
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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

IJFS, 2023, vol. 11, issue 4, 1-23

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.

Keywords: critical success factors; financing implementation; Indonesia toll roads; business entity perspective (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2023
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