A New Financial Model of Toll Road Infrastructure

The 2014 International Symposium on Business and Management, Nov. 12-14, 2014, Tokyo, Japan

33 Pages Posted: 4 Jun 2019

See all articles by Lukas B. Sihombing

Lukas B. Sihombing

University of Indonesia (UI) - Faculty of Economic, University of Indonesia (UI) - Department of Civil Engineering

Date Written: November 14, 2014

Abstract

The development of toll road in developing countries especially in Indonesia was very slow. Although the Government of Indonesia has an accelerated toll road plan for 2020 was 4,000 km, but toll road length in 2013 was still 784 km. Because of that, the gap of toll road length in Indonesia has to be filled; one of the ways is to develop a new financial model as not business as usual. Existing financial model for toll road in Indonesia case had been built by Wibowo and Kochendörfer (2005), the model based on project financial risk at public private partnership delivery especially in build operate transfer (BOT). At the present, the problem of toll road development in Indonesia is more complex, so the model should be adjusted with real problems. This paper wants to develop a new financial model for toll road infrastructure with systematic review and meta analysis method; this new financial model can be expected to accelerate toll road development in Indonesia. The result of this paper is a new financial model that influenced by some factors: land leased, project delivery, tax increment financing, and Value for Money analysis.

Keywords: Toll Road, Financial Model, Public Private Partnership, BOT

JEL Classification: G23, R51

Suggested Citation

Sihombing, Lukas B., A New Financial Model of Toll Road Infrastructure (November 14, 2014). The 2014 International Symposium on Business and Management, Nov. 12-14, 2014, Tokyo, Japan , Available at SSRN: https://ssrn.com/abstract=3387599

Lukas B. Sihombing (Contact Author)

University of Indonesia (UI) - Faculty of Economic, University of Indonesia (UI) - Department of Civil Engineering ( email )

Kampus Baru
Depok, West Java 16424
Indonesia

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