Asssessing Public Private Partnership in Indonesia Tourism

Several studies have shown significant development in Indonesia tourism; however, works of literature that focus on the extent of successful stakeholders’ participation in Indonesia tourism are hard to be found. This study aims to determine the success of public-private partnership (PPP) in the development of tourism in Indonesia and uses a descriptive qualitative methodology by conducting a literature study on previous studies related to tourism development in Indonesia, which adopted the concept of PPP in 2012. The research result shows that the PPP concept can be effectively carried out in tourist destination development programs and tourist infrastructure improvement programs. In addition, several targets must be set to achieve the success of public private partnership in the development of tourism in Indonesia, namely: 1) creating competitive tourism globally or nationally, 2) creating cooperative tourism focusing on the service and tourist destination infrastructure, 3) creating tourism that has unique characteristics based on its natural conditions so it has its own identity.


Bhayu Rhama
is a lecturer and researcher at Administration Public Department, Faculty of Social and Political Science, University of Palangka Raya who focuses on ecotourism policy in national parks. His passion for ecotourism granted him a full scholarship for Ph.D study at the University of Central Lancashire, UK, and contributed knowledge to develop ecotourism policy in Sebangau National Park. He has also done several pieces of research and reputable publications such as journals as well as books publication. Bhayu is also a tourism practitioner and becomes the Chairperson of the Association of Indonesian Tours and Travel Agencies (ASITA) of Central Kalimantan for 2018-2023 and the Executive Director of the Regional Tourism Promotion Board (BPPD) of Palangka Raya City for 2016-2020.

Ferry Setiawan
is a Lecturer and researcher in Public Administration, was born in Medan, Indonesia, 5 April 1986. Graduated from the Faculty of Law, STIH Graha Kirana Medan, Indonesia, with specialization on Legal Studies. Her Master of Faculty of Social and Political Sciences degree is obtained from the University of North Sumatera, with specialization in Development Studies, and became the best student on graduation in March 2014. Since 2018 he has worked as a lecturer and researcher at the Department of Public Administration, Faculty of Social and Political Sciences, University of Palangka Raya. Currently, tourism is a priority for Indonesia in order to increase state revenues outside oil, gas and taxes; thus, Indonesia is one of the developing countries that promotes tourism to increase the number of foreign tourist arrivals (Pratiwi, 2018). P r e v i o u s r e s e a r c h conducted by Pratiwi and Warsono (Pratiwi, 2018) also showed that Indonesia could develop its potential from the aspect of tourism so that it was able to overcome the problems of strengthening the economy Submitted: 2 May 2020, Revised: 5 August 2020, Accepted: 18 August 2020 through foreign exchange or regional income.

Introduction
The increasing welfare or economy for the community from tourism activities can be seen from the decline of the number of unemployed in the tourist destination so that tourism is also considered as a catalyst for development and as an agent of development as well as a major driver in development (Damayanti & Latifah, 2015).
Therefore, the Government of Indonesia issued Law Number 10 of 2009 concerning tourism, which explained that tourism development was needed to encourage equal opportunity to try and benefit and be able to face the challenges of changing local, national and global life. Foreign tourists who come to Indonesia are also encouraged to create business relations with the community so that tourism shows a large role in the presence of foreign investment.

Management of the tourism industry that
is well managed by all parties can ultimately prosper the community if it is developed to the maximum (Rani & Retnoningsih, 2014).
Another study from Holik (2016) also states that opening tourist destinations will create economic activities around tourist destinations that absorb labour in the formal and informal sectors ("Relationship of Economic Growth with Tourism Sector," 2016). However, the classic problem often emerges regarding the limited funds to develop potential tourism destinations that are relatively large with a fairly long return (Rhama, 2020). Tourist destinations generally require supporting facilities, such as access and amenities, which are sometimes not a priority for local governments so it needs support not only from the government but also from the private sector and the community (Haddadi & Khodadadpoor, 2015).
Investment in a tourist destination is an integral part of tourism activities, and the concept of public private partnership (PPP) provides an opportunity for the private sector to be involved in tourism development to obtain financial benefits. These investments are not only used to expand capacity but also to improve quality, competitiveness, productivity and sustainability.
Global investment in travel and tourism in the period 2011 and 2021 is expected to increase by an average of 5% per year or 73% in 10 years, faster than travel and tourism GDP and employment growth, reaching US $ 1,490 billion in 2021. Meanwhile, total capital investment in the industrial sector is expected to rise only slightly, by 0.1% per year (Dias, 2014). Table 1   concept (Rogerson, 2016).
Tourism development is predicted to be more optimal if a partnership takes place between the government and the private sector or is called a public private partnership, which is a form of long-term cooperation to provide a pleasant tourism experience (Ikram, 2018). Moreover, the lack of cooperation and good communication between the government, the private sector and the community are considered to be an issue in Indonesia tourism development (Sutawa, 2012

Results and Discussion
According to Ismowati (2018), Public Private Partnership is one type of privatization which means a regulation in which the government requires capital incentives, the need for long-term infrastructure, and the combination of financing the desired facility development between the government and the private sector (most costs are usually financed privately) (Ismowati, 2018). and British Airways (BA) to British Telecom (BT) (Ismowati, 2018).
There are various types of privatization, according to Samuel Paul in Ismowati (2018).
"Privatization can be carried out in three ways, namely: First, the sale of state companies to private parties. Second, the Government tells the services or jobs that are planned by specifying assignments to private companies which then produce by distributing these services. Third, the Government withdraws from producing goods and services while allowing the private sector to carry out the work" (Ismowati, 2018).
Another previous study from Savas ES Savas in 1972(Godwin, 2001) made a simple classification of privatization forms that included 3 groupings of government privatization in carrying out service functions and also ownership of companies and assets, namely: (1) The delegation, namely the government, still has responsibilities but invites the private sector in the administration of public services. (2) Divestment (divestment), i.e., the government relinquishes its responsibilities by way of Sales, By Free Transfer. Or Liquidation; and (3) Displacement, which is the private sector growing and developing and taking over government activities. Privatization in the form of a more passive displacement or an indirect process that allows the government to carry out more or less its role gradually to the private sector. Displacement is often not recognized as a form of privatization due to problems of political conflict. Displacement occurs because of failure (default), taking back (withdrawal) or voluntary action, and deregulation, which depends on regional initiatives and entrepreneurial attitudes of the government.
There are five forms of public private partnership (PPP) according to Ismowati (2018).
First, service contracts are contracts between the government and private parties to carry out certain tasks, for example, repair services, maintenance or other services, generally in the short term, 1-3 years, with compensation/fees (Ismowati, 2018 (Ekpenyong, 2015).
The PPP involves contracts between public sector authorities and the private sector, where the private sector provides public services or projects and bears substantial financial, technical and operational risks in the project (Broadbent & Laughlin, 2003 with the government to provide agreed-upon services, and the cost of providing services is borne in whole or in part by the government (Madanipour, 2003). Government contributions to PPP can be in the form of tangible items (mainly transfers of existing assets) and in projects aimed at creating public goods, such as in the tourism sector. The government can provide capital subsidies in the form of one-time grants to attract private investors (Kellerman, 2009 (Ismowati, 2018).
The role of the government in this case is only as a director, not a paddle, in which the government only sets rules and controls, while the implementer is the private sector. In line with this thinking is the opinion expressed by Savas: privatization is the act of reducing the role of government or increasing the role of the private sector, to create or own assets (Savas, 1992).
Although, private companies generally prioritize the benefits (benefits) obtained. However, through a careful and mature study, the government set rules that do not provide too much profit to the private sector. In other words, the regulations made are not too detrimental to the community, nor are they too beneficial to the private sector.
The role of government is as an intermediary between the private sector and the community.  (Rogerson, 2016).

Implementation of projects aimed at
creating an infrastructure based on the agreements that have been made in tourism makes it possible to conclude that the mechanism of interaction between business-private and state authorities is effective in implementing large infrastructure projects. Interaction between state and business in a public-private partnership can be one of the most promising fields for intensifying tourism development (Zaitseva et al., 2017). With competent support from the tourism business government, the increase in tourist flows and the development of the regional economy will be ensured of its success. Involving the private sector in implementing public infrastructure projects will significantly reduce the risk of project in Indonesia can be seen in Table 2.

Tourism Development
Development is done to improve the standard of living of a nation, which is often measured by the level of income and increased
The government has established cooperation or partnership in the development of Sarangan Lake tourism by creating a tourism development team. Cooperation is also established with Karisma Pawirogo, which aims to develop the tourist destination of Lake Sarangan Magetan. The form of partnership for the development of Sarangan Lake tourism is by collaborating with tourism packages and the construction of a Tourism Information Center (TIC). The Government also cooperates with providing transportation services through DAMRI from Ponorogo to Lake Sarangan tourism objects. Another form of cooperation is the selection of tourism ambassadors called IBADI (Ikatan Bagus Dyah), in addition to various training and coaching for the management of tourism attraction with front office certification and certification for boat associations. Sarangan Lake with the agreement of the tour manager who built and handed over the assets that were finally managed by the government. In addition, there is also cooperation with restaurant owners and hotel owners; partnerships are implemented to increase success in tourism development in Indonesia.
Public private partnership in the development and management of the tourism sector is less than optimal; the management of facilities and infrastructure is not good, so it causes a lack of tourists who visit, promotions carried out by the Office of Tourism and Culture of Kuantan Singingi Regency about tourism events that runway lanes and objects other tourism that has not been optimal, and the lack of socialization from the Tourism and Culture Office of Kuantan Singingi Regency to the public regarding culture and tradition, as well as the beauty of the race track event that is not widely known by people outside the area and the city.  (Apriliani, Rahmawati, 2018).
Public-private partnerships in the development of the Ciletuh-Palabuhanratu Geopark Sukabumi Regency are considered good. Resources including information still need to be improved. But in terms of resources, especially in the supervision and management of geosite, the Ciletuh-Palabuhanratu Geopark is quite extensive; it needs efforts to increase the capacity of human resource management, and OPD is involved in the development of the Ciletuh-Palabuhanratu geopark area.
Government, private sector and society.

Source: data processed by authors
health and other interests such as being curious and adding experience or learning (Pendit, 2002).
Rhama also states that tourism has become a social and economic phenomenon of movements carried out by several people or persons within a certain period (up to 1 year) from their place of residence (Rhama, 2019).
The definition of tourism is also suggested by Salah as a conscious human activity that receives service interchangeably between people in a country itself or abroad, including the temporary resident of people from other regions looking for the satisfaction that is diverse and different from what he experienced, where he got a permanent job (Wahab, 2003). And it can be concluded that tourism is a trip made by people from one place to another, temporarily with the intent or purpose not to try or find work in the place visited, but merely to enjoy an excursion trip and to fulfil various desires.
The development of the tourism sector as an effort to improve and manage its tourist attraction to make it more famous in various regions and foreign countries is done because each region has a variety of natural beauty that can attract the sympathy of tourists to come and enjoy the  (Ikram, 2018).