PPP as a concept is indeed good, but it is difficult to implement ..."Jakarta (ANTARA News) - Finance Minister Bambang Brodjonegoro expressed his disapproval to the suggestion put forth by Executive Director of the International Monetary Fund Christine Lagarde to use the public-private partnership (PPP) model for infrastructure development.
"PPP as a concept is indeed good, but it is difficult to implement as the PPP concept we have created so far is too ideal. We have tried it since long, but it has been successful only a few times," he noted during a panel discussion here on Wednesday.
The IMF and the World Bank have been campaigning for developing countries to seek infrastructure development funding through the PPP scheme.
Bambang stated that there have so far been two sources of funding for infrastructure development --- private parties and the government --- and in the PPP scheme, funding comes from both the private parties and the government.
However, since their funding levels are equal, one of them often felt higher than the other.
"If an infrastructure development project is fully funded by the government, we have full control, but under a PPP scheme, the private party and the government are equal, and both of them want to have control," he pointed out.
The minister emphasized that he would study the PPP model further in a bid to make it more practical and quick to implement in the future.
"We have to make the PPP more practical and effective and not too idealistic. We often talk about the boss mentality, and it is a problem that developing countries are facing. The transition process must be settled," he added.
(Reporting by Citro Atmoko/Uu.H-YH/INE/KR-BSR/A014)
Editor: Priyambodo RH
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