Abstract
The potential growth of economic of a country is influenced by availability of public infrastructure. Private participation in the provision of public fascilities is essensial due to the lack of public financial resources. Build-Operate-Transfer (BOT) has been a focus of the Government in privatizing those fascilities. Under this scheme, risks are transfered in part from principal side to the investor’s. The BOT shares mutual benefits in respect to the decrease of the investment. On the other hand, investors have to deal with the risk of project failure or miscalculation of financial projections. Therefore, comprehensive knowledge and skill in managing risks is needed in the implementation of BOT projects.
The objective of this on going research is to bring recommendations toward successful BOT implementation in Indonesia by developing risk management analytical framework.
A set of data, which is based on public infrastructure project in Indonesia, will be collected through questionnaires and structure interviews. The data collected will be analysed based on the area of corporate and project finance aspect. This analysis will be combined with a framework of risk management that involves risk identification, risk analysis and risk response.
The possible results could be a set of reccommendation that could be used for institutional body to deal with BOT projects in Indonesia.
"Risk Management :A Case study in Indonesia’s BOT Project"
Andi Nusa Patria 1 and Mochamad Agung Wibowo 2
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The potential growth of economic of a country is influenced by availability of public infrastructure. Private participation in the provision of public fascilities is essensial due to the lack of public financial resources. Build-Operate-Transfer (BOT) has been a focus of the Government in privatizing those fascilities. Under this scheme, risks are transfered in part from principal side to the investor’s. The BOT shares mutual benefits in respect to the decrease of the investment. On the other hand, investors have to deal with the risk of project failure or miscalculation of financial projections. Therefore, comprehensive knowledge and skill in managing risks is needed in the implementation of BOT projects.
The objective of this on going research is to bring recommendations toward successful BOT implementation in Indonesia by developing risk management analytical framework.
A set of data, which is based on public infrastructure project in Indonesia, will be collected through questionnaires and structure interviews. The data collected will be analysed based on the area of corporate and project finance aspect. This analysis will be combined with a framework of risk management that involves risk identification, risk analysis and risk response.
The possible results could be a set of reccommendation that could be used for institutional body to deal with BOT projects in Indonesia.
"Risk Management :A Case study in Indonesia’s BOT Project"
Andi Nusa Patria 1 and Mochamad Agung Wibowo 2
Download
