Public-Private Partnership in Indonesia: Solutions and corruption loopholes

Main Article Content

Diaz Adiasma
Didik Mulyanto
Fitriani Nurza
Hilda Alatas


We need to better understand Public-Private Partnership (PPP), since most people perceive PPP as a riskless solution for government, as it involves private sector funding. In Indonesia, infrastructure development is one of the top priority sectors for Joko Widodo’s administration, and PPP has become a viable option due to budgetary constraints. However, PPP is not an impeccable solution, as there are weaknesses and loopholes for corruption to be aware of. In this literature review, we combine our previous study on Indonesia’s toll road PPP with other PPP studies to identify the weaknesses and corruption loopholes in PPP practices in Indonesia. There is clear evidence that PPP projects could end up as “white elephants”, indicating misallocation of resources and poor planning. PPP could also be used to create “fiscal illusion” to deceive public by the government. We also discovered that toll road PPP contracts in Indonesia remain vulnerable, potentially creating room for loopholes and corruption.

Article Details

How to Cite
Adiasma, D., Mulyanto, D., Nurza, F., & Alatas, H. (2023). Public-Private Partnership in Indonesia: Solutions and corruption loopholes. Integritas : Jurnal Antikorupsi, 9(2), 183–194.
Author Biographies

Diaz Adiasma, Komisi Pemberantasan Korupsi

Monitoring Directorate, Deputy of Prevention and Monitoring, Komisi Pemberantasan Korupsi

Didik Mulyanto, Komisi Pemberantasan Korupsi

Monitoring Directorate, Deputy of Prevention and Monitoring, Komisi Pemberantasan Korupsi

Fitriani Nurza, Komisi Pemberantasan Korupsi

Monitoring Directorate, Deputy of Prevention and Monitoring, Komisi Pemberantasan Korupsi

Hilda Alatas, Komisi Pemberantasan Korupsi

Monitoring Directorate, Deputy of Prevention and Monitoring, Komisi Pemberantasan Korupsi


Asmarini, W. (2022). 2 PLTU Batu Bara raksasa ini diam-diam sudah beroperasi lho. CNBC Indonesia.

Campos, N., Engel, E., Fischer, R. D., & Galetovic, A. (2021). The ways of corruption in infrastructure: Lessons from the Odebrecht case. Journal of Economic Perspectives, 35(2), 171–190.

Cepparulo, A., Eusepi, G., & Giuriato, L. (2019). Public Private Partnership and fiscal illusion: A systematic review. Journal of Infrastructure, Policy and Development, 3(2), 288.

Cuadrado-Ballesteros, B., & Peña-Miguel, N. (2022). Analysing the link between corruption and PPPs in infrastructure projects: an empirical assessment in developing countries. Journal of Economic Policy Reform, 25(2), 136–155.

Daniel, A., Germà, B., & Albert, G. (2019). Politics, risk, and white elephants in infrastructure PPPs. Utilities Policy, 58(April), 158–165.

Direktorat Monitoring KPK. (2022). Kajian tata kelola BPJT dalam penyelenggaraan jalan tol. In Komisi Pemberantasan Korupsi.

Domina, T. (2017). Dana Bandara Kertajati dari swasta Rp 900 miliar. Kontan.Co.Id.

Domingues, S., & Sarmento, J. M. (2016). Critical renegotiation triggers of European transport concessions. Transport Policy, 48, 82–91.

Fatokun, A., Akintoye, A., & Liyanage, C. (2015). Renegotiation of public private partnership road contracts: Issues and outcomes. Proceedings of the 31st Annual Association of Researchers in Construction Management Conference, ARCOM 2015, September, 1249–1258.

Hodge, G., & Greve, C. (2010). Public-private partnerships: Governance scheme or language game? Australian Journal of Public Administration, 69(SUPPL. 1), 8–22.

Iossa, E., & Martimort, D. (2016). Corruption in PPPs, incentives and contract incompleteness. International Journal of Industrial Organization, 44, 85–100.

Klitgaard, R. (2012). Public-private collaboration and corruption. In The CBS-Sauder-Monash conference on public-private partnerships (Issue September).

Mendoza, R. U., Bertulfo, D. J., & Cruz, J. P. D. (2018). From megaproject to white elephant: Lessons from the Philippines’s bataan nuclear power plant. Philippine Studies: Historical and Ethnographic Viewpoints, 66(3), 335–374.

Ninditya, F. (2015). Wapres tegaskan proyek listrik tetap 35.000 MW. Antara News.

Nugraheny, D. E., & Meiliana, D. (2021). KSP: Pembangunan ibu kota baru perlu anggaran Rp 466 T, tak semua ditanggung APBN. Kompas.

Pambagio, A. (2023). Kebijakan “Ngatur Setrum”, awas kesetrum! Detik News.

Pratama, W. P. (2022). Biaya pembangunan infrastruktur capai Rp6.445 Triliun, APBN hanya mampu sumbang 37 persen. Bisnis.

Putra, D. A. (2022). Pengamat penerbangan ungkap alasan Bandara Kertajati masih sepi. Tirto.

Robinson, J. A., & Torvik, R. (2005). White elephants. Journal of Public Economics, 89(2–3), 197–210.

Rybnicek, R., Plakolm, J., & Baumgartner, L. (2020). Risks in public–private partnerships: A systematic literature review of risk factors, their impact and risk mitigation strategies. Public Performance & Management Review, 43(5), 1174–1208.

Sari, A. R., & Sedayu, A. (2023). Bandara Kertajati ditawarkan ke Arab Saudi dan India, ekonom ungkap kelemahannya. Tempo.

Schomaker, R. M. (2020). Conceptualizing corruption in public private partnerships. Public Organization Review, 20(4), 807–820.

Setiawan, V. N. (2022). Operasi PLTU Batang ditunda sementara, begini kata Boy Thohir. CNBC Indonesia.

Turnbull, G. K. (1998). The overspending and flypaper effects of fiscal illusion : Theory and empirical evidence. Journal of Urban Economics, 44(1), 1–26.

Turró, M., & Penyalver, D. (2019). Hunting white elephants on the road. A practical procedure to detect harmful projects of transport infrastructure. Research in Transportation Economics, 75(March), 3–20.

Ulya, F. N., & Setiawan, S. R. D. (2019). Pemerintah mau bangun 2.500 Km jalan tol hingga 2024. Kompas.

van den Hurk, M. (2018). Public–Private Partnerships: Where do we go from here? A Belgian perspective. Public Works Management & Policy, 23(3), 274–294.

World-Bank. (2017). PPP Reference Guide. World Bank.

Yanwardhana, E. (2022). Jasa Marga sebut Tol Manado-Bitung paling rugikan perusahaan. CNBC Indonesia.