Assessing Critical Success Factors for PPP Water Project in Indonesia: Lessons from West Semarang 164 Assessing Critical Success Factors for PPP Water Project in Indonesia: Lessons from West Semarang

A very low success rate of PPP infrastructure projects between 2005 and 2015 has encouraged the Indonesian government to adopt the BOT scheme as the main strategy to accelerate the progress. Although the National Government has attempted to amend the presidential regulations three times in a row, only one out of seven priority national water supply projects reached a financial close and started the project. Using Ameyaw and Chan’s theoretical framework (2016), this article examines the case of West Semarang as a leading example to improve understanding of the key success factors for successful PPP implementation in Indonesia’s drinking water supply sector. Multiperspective data, incorporating views of national and local actors and relevant government documents, were analyzed for the purpose of this study. The findings highlight five critical success factors: Strong commitment from the contracting agency, as well as local and national government, experienced project partners, long-term capital, tangible political support, and the existence of Indonesia PPP Joint Office. Finally, recommendations to improve PPP implementation in drinking-water projects are suggested accordingly.


Fathurrahman, Reza is an
Assistant Professor in the field of Public Administration. Currently, he serves as the Secretary of Postgraduate School and as the Head of International Office, Faculty of Administrative Science, Universitas Indonesia. He pursued his bachelor's degree in Psychology from Universitas Padjadjaran. Afterward, he obtained his master's degree in public policy from the Willy Brandt School of Public Policy, University of Erfurt, and received his doctorate from the Leibniz University of Hannover, both with a full scholarship from DAAD (German Academic Exchange Service). As an active member of the Policy, Governance, and Administrative Reform (PGAR) Research Cluster at the Faculty, his research interests include administrative reform, organizational culture, and change management issues.

Introduction
Development is a process of making change undertaken by some planned efforts (Riyadi & Baratakusumah, 2005 infrastructure is one of the most important factors of development (Todaro & Smith, 2012).
Infrastructure development is a main concern for many countries. It is a general belief that improving infrastructure will implicate economic growth. A country's economic growth cannot be separated from infrastructure provisions such as drinking water supply, sanitation, telecommunications, transportation, and energy (Carnis & Yuliawati, 2013 (Rakić & Rađenović, 2011).
Public Private Partnership (PPP) is one of NPM paradigm tools. Firstly introduced around the 1980s, it represents a collaboration between the public sector and the private sector to provide public service with a fair risk allocation in achieving the desired results of public service (Rakić & Rađenović, 2011). Walker andcolleagues (1995, as cited in Cheung, Chan, &Kajewski, 2009) contend that there are three main reasons for applying for the PPP scheme: The primary reason is that the government wants to get a largescale source of funding to finance infrastructure projects. The second reason relates to the assumption that the private sector has a better capacity to provide public services. Finally, the third rationale for PPP is that the private sector has higher mobility than the government.
PPP in Indonesia is known as Kerjasama Pemerintah dan Badan Usaha (KPBU). PPP implementation in Indonesia was started for the first time during the economic crisis in [1997][1998] in Southeast Asia, which affected infrastructure financing in Indonesia. The financial crisis in Indonesia made the government reduce spending on development because the government needs to fix more important problems at that time, such as currency devaluation, capital flights by private parties, unstable political conditions, and social problems (The World Bank, 2004, p. 1). As a consequence, the spending decreased on development was leading to a decrease in Indonesia's infrastructure quality.
Indonesia started to implement PPP in 1998 through the issuance of a Presidential Decree No. 7/1998 on Cooperation of Government-Private Business Entities in the Development and Management of Infrastructure. However, this Decree was considered as the government's reluctance to relinquish direct control and to introduce a selection system for determining the most reliable private investor through a competitive tendering process. This circumstance made the potential investors decide to abandon their intention because Presidential Decree No. 7/1998 was considered problematic. The main problem within this regulation is the unfair risk allocation that private investors have to be borne (The World Bank, 2004, p. 58 (Adji, 2010, p. 27). Yet this attempt failed to achieve its primary objective since the investors still did not know how the PPP project worked. Out of 91 projects, there were only six bidders, and just one project started the construction stage (Wibowo, 2006 (Bappenas, 2014, p. 156). To achieve this strategic objective, the government directed its efforts to build drinking water supply basic infrastructure.

According to Presidential Presidential
Re g u l a t i o n N o . 3 / 2 0 1 6 o n A c c e l e ra t e d   BOT is a cooperation between government and private entities to provide public infrastructure products and services (Yang, Nisar, & Prabhakar, 2009 Secondly, preparation (the preparation stage aims to assess PPP project feasibility to reduce the risk of project failure during the bidding process or during the project contract period); Thirdly, implementation and procurement (this stage aims to determine and develop a PPP contract that best fits the specific features of a project contract, so as to protect, and where possible, optimize value for money); and finally, contract management (aims to manage the process for selecting the best value proposals in a competitive and regulated environment, and executing contracts with the most suitable and reliable bidder).

PPP Critical Success Factors (CSF) in Drinking
Water Supply Project A previous study conducted by Ameyaw and Chan (2016)   Finally, the ideal-type data analysis technique was employed to analyze the collected data. The ideal type is a qualitative data analysis strategy that involves making comparisons between theory and reality (Neuman, 2014, p. 487). The data obtained from the interviews were transcribed verbatim before categorizing into 11 critical success factors of PPP Project in Water Supply, as suggested by Ameyaw and Chan (2016). The three-column analysis was used to systematically analyze the data (from raw data, preliminary codes, to final code), as suggested by Saldaña (2021), and thus facilitating a streamlined codes-to-theory model for qualitative investigation.

Commitment of Partners
Four indicators form the Commitment of

Strength of Consortium
According to Ameyaw and Chan (2016),  (2018) suggest that SPV has to achieve positive value for money in the PPP project.

Political Environment
Theoretically