Investasi Partisipatif

(PPP + CSR)
P E MBI AYA AN P E M BA NGU NAN
I S MU R I N I DWI AR I
POKOK BAHASAN
1. WHAT IS PPP?
2. WHY PPP?
3. TYPE OF PPP
4. 4 BASIC DIMENSIONS OF PPP
5. PPP EXAMPLE – BOT OR BOOT
6. WHAT IS CSR?
7. PRO & CONTRA OF CSR
8. CSR EXAMPLE
 1. What is PPP?

http://www.inc.com/dave-kerpen/15-quotes-to-inspire-great-team-work.html
Public Private Partnership
(PPP)
Describes a government service or private business venture
which is funded and operated through a partnership of
government and one or more private sector companies.

Involves a contract between a public sector authority and a

private party, in which the private party provides a public
service or project and assumes substantial financial,
technical and operational risk in the project.

Source: Wikipedia, 2012

Definition of PPP
It is a contractual agreement formed between
public and private sector partners, which allows
more private sector participation than is
traditional.

Source: Jerry Fay, PE

 Definition of PPP
A PPP exists when public sector agencies
(federal, state, or local) join with private sector
entities (companies, foundations, academic
institutions or citizens) and enter into a business
relationship to attain a commonly shared goal that
also achieves objectives of the individual
partners.

Source: Jerry Fay, PE

2. Why PPP?

It is a tool that can help governments

meet demands for the development of
modern and efficient facilities,
infrastructure and services while
providing value for taxpayers.

Source: Jerry Fay, PE

Why PPPs have become an alternative to
traditional methods for the provision of public
services?
1. Ex ante Competition (Private sector firms compete to
do project)
1. Marshaling the pro-efficiency forces of competition
lowers costs.
2. Competition at the bidding stage, ex ante
3. Less likely that tax payers will get value for money
their if such ex-ante competition does not exist
2. Scarce Skills
1. Private sector has skills not available in the public
sector
2. Allocate certain tasks to a private partner who has
the skills and also the incentive to reform at a high
level
Source: lecture 4
Why PPPs have become an alternative to
traditional methods for the provision of public
services?
3. Poor Labor Relations
1. Private sector through the forces of competition
may offer a skilled, efficient and flexible labor
force.
The public sector labor management may be
inflexible due to tradition, civil service laws, and
political protection of certain groups of workers

Source: lecture 4
3. Type of PPP
A. The cost of using the service is borne exclusively by the
users of the service and not by the taxpayer.

B. The capital investment is made by the private sector on

the strength of a contract with government to provide
agreed services and the cost of providing the service is
borne wholly or in part by the government (The private
finance initiative).

Source: Wikipedia, 2012

Typical Uses
Contracting with a private company to:
◦ Renovate
◦ Construct
◦ Operate
◦ Maintain
◦ And/or Manage
a facility or system

Source: Jerry Fay, PE

 Different PPP Models
Privatisation

Buy-Build-Operate
Degree of Private Sector Risk

Build-Own-Operate

Build-Own-Operate-Transfer

Build-Lease-Operate-Transfer

Lease-Develop-Operate

Design-Build-Operate

Operation / Maintenance
Service /License
Design-Build

Government

Degree of Private Sector Involvement

Source: lecture 4
4. Four Basic Dimensions of PPP
Though each is unique, all P3’s include 4 basic
characteristics
 Shared goals;

 Shared resources (time, money, expertise, people);

 Shared risks;

 Shared benefits
Government Contributions to
a PPP
The transfer of existing assets.

◦ Provide a capital subsidy in the form of a one-time grant

for the projects that are aimed at creating public goods
(such as infrastructure sector)

◦ Support the project by providing revenue subsidies,

including tax breaks or by providing guaranteed annual
revenues for a fixed period

Source: Wikipedia, 2012

Special Purpose Vehicle (SPV)
for PPP
A private sector consortium forms a special company
called a SPV.
◦ to develop, build, maintain and operate the asset for
the contracted period.

Sometimes the government has invested in the project,

it is typically (but not always) allotted an equity share in
the SPV.

The consortium is usually made up of a building

contractor, a maintenance company and bank lender(s).

Source: Wikipedia, 2012

Special Purpose Vehicle (SPV)
for PPP
It is the SPV that signs the contract with the government and
with subcontractors to build the facility and then maintain it.

In the infrastructure sector, complex arrangements and

contracts that guarantee and secure the cash flow and make
PPP projects prime candidates for project financing.

Source: Wikipedia, 2012

5. PPP Example
A hospital building：
◦ financed and constructed by a private developer and
then

◦ leased to the hospital authority,

◦ Then the private developer acts as

◦ landlord,
◦ providing housekeeping and other non-medical
services;

◦ while the hospital itself provides medical services.

Source: Wikipedia, 2012

BOT or BOOT
Build–operate–transfer (BOT) or build–own–operate–transfer (BOOT)
◦ Is a form of project financing, wherein a private entity receives a concession
from the private or public sector to finance, design, construct, and operate a
facility stated in the concession contract.

◦ This enables the project proponent to recover its investment, operating and
maintenance expenses in the project.

BOOT & BOT are methods which find very extensive application in
countries which desire ownership transfer and operations including for
infrastructure development

Source: Wikipedia, 2012

BOT
BOT finds extensive application in the infrastructure
projects and in PPP.

In the BOT framework a third party delegates to a private

sector entity to design and build infrastructure and to
operate and maintain these facilities for a certain period.
◦ The host government
◦ the initiator of the infrastructure project and the
decision making
◦ The concessionaire
◦ the project sponsors through their financial
contributions.

Source: Wikipedia, 2012

BOT
◦ Lending banks
◦ to finance the project on “non-recourse” basis meaning
and all its assets for the repayment of the debt.

◦ Other lenders
◦ the special purpose entity might have other lenders such
as national or regional development banks

◦ Parties to the project contracts

◦ limited workforce, need subcontract a third party to
perform its obligations under the concession agreement.

Source: Wikipedia, 2012

 BOT Model

Source: Wikipedia, 2012

The Most Common Risks of
BOT
The private entity bears a substantial part of the risk.
◦ Political risk
◦ especially in the developing countries because of the possibility of
dramatic overnight political change.

◦ Technical risk
◦ construction difficulties, for example unforeseen soil conditions,
breakdown of equipment.

◦ Financing risk
◦ foreign exchange rate risk and interest rate fluctuation, market risk
(change in the price of raw materials), income risk (over-optimistic
cash-flow forecasts), cost overrun risk

Source: Wikipedia, 2012

 BOOT
A BOOT structure differs from BOT in that the private entity owns
the works.

During the concession period the private company owns and

operates the facility with the prime goal to recover the costs of
investment and maintenance while trying to achieve higher
margin on project.

It suitable for infrastructure projects like highways, roads mass

transit, railway transport and power generation and as such they
have political importance for the social welfare but are not
attractive for other types of private investments.

Source: Wikipedia, 2012

Advantages of BOOT
Encourage private investment
Inject new foreign capital to the country
Transfer of technology and know-how
Completing project within time frame and planned budget
Providing additional financial source for other priority projects
Releasing the burden on public budget for infrastructure
development

Source: Wikipedia, 2012

Corporate Social Responsibility
(CSR)
Also known as
corporate conscience,
corporate citizenship,
social performance, or
sustainable responsible business/ Responsible Business).

Source: Wikipedia, 2012

6. What is CSR?

Please discuss within your friends within 2 minutes.

Definition of CSR
Is a form of corporate self-regulation integrated into a
business model.

CSR policy functions as a built-in, self-regulating mechanism

whereby a business monitors and ensures its active
compliance with the spirit of the law, ethical standards, and
international norms.

Source: Wikipedia, 2012

Definition of CSR
It is seriously considering the impact of a company’s action
on society.
It requires the company to consider its actions in terms of a
whole social system and is held responsible for the effects of
its acts anywhere in that system.

(Social Responsibility 250-566, Chapter 1)

Definition of CSR
The integration of environmental, social and corporate
governance issues into long-range business strategy and
operations.

(Gavin Power (The New Frontier in Responsible Business: The

UN Perspective, 2005))
 Definition of CSR
It is a concept whereby companies integrate social and
environmental concerns in their business operations and in
their interaction with their stakeholders on a voluntary basic.

EU Green Paper on CSR (Yusuf Wibisono, 2007, Membedah

Konsep & Aplikasi CSR, Fascho Publishing, Gresik)
Definition of CSR
(i) Social and Environmental considerations,

(ii) Balanced integration,

(iii) Business operations and strategy,

(iv) Stakeholder engagement.

(Stranberg Consulting, 2008)

 The Goal of CSR
To embrace responsibility for the company's actions and
encourage a positive impact through its activities on the
environment, consumers, employees, communities,
stakeholders and all other members of the public sphere
who may also be considered as stakeholders.

Source: Wikipedia, 2012

 Pro & Contra of CSR
Pro
i. The rise of large corporations has created social problems and
they should be responsible for solving these problems,

ii. Long-range self-interest view – if a company wants a healthy

future, it has to create the climate,

iii. To ward off future government intervention and regulation,

iv. “Business has resources” and “Let business try”,

v. Public strongly supports it.

Source: Social Responsibility 250-566, Chapter 1

Pro & Contra of CSR
Contra

i. Social issues are not the concerns of businesses,

ii. Managers do not have the expertise to make social

decisions,

iii. Business already have enough power – if given decision

making power in the social domain, businesses will be
given too much power .

Source: Social Responsibility 250-566, Chapter 1

 a. CSR in Wonorejo Village
Minimum standard of urban water supply services are 60% and

25% for rural area (Public Works Department), but there was no municipal
water pipeline access in Wonorejo village.

In 1992, Malang Regency developed a water system in the Village,


but it failed because of weak institution brings a lack of operation
maintenance & financing.
(no community participation)

In 2004, Philip Morris company did CSR ‘water infrastructure in


Wonorejo Village’ .
(with community participation)

35
 Chronological of Water Development
1992 – water pipeline from Madin`s resource
LC
from Dana Mitra Lingkungan project Physical Malang Regency
Project

CL 2002 – 3x simple
OM proposals (repair
the pipeline &
drilling new
Wonorejo Village resource)
2004 - Rp. 210 million (¥2.470.588)–
Rp. 200 million (95%) for drilling the Former Head of
198 m underground water and built Village
the tower – capacity 1.5 lt/hr & Rp. 10
million (5%) for community building
capacity
Start in May 2004, 3x 2003 submitted ???
field investigations simple proposals

LPKP
PT. PHILIP MORRIS
(NGO)
 The Characteristic Water Supply

Aspect Before 2004 After 2004

a. physical 1 ground reservoir & 2 water tap 40% households have been connected
for all villagers with water pipeline
b. social 2x / day villagers carried 2 plastic 60% households use similar way as in
jerry cans to get fresh water in the previous, without long queuing
long queuing

Most villagers had bathing & Some of the villagers still continue their
washing in the open space in habit
public water tap
c. Economical Daily payment to the private Monthly payment to the village office
vendors (Rp.1000/m3 < ¥10/m3)
d. Human resources No awareness on OM water Community participation has been
infrastructure growing

e. Relationships Top down planning (Local Bottom up planning & PPP has been
Government to village) developing
BEFORE
AFTER
b. PTLMH “Sumber Maron” I
Desa Karangsuko Kecamatan Pagelaran Kabupaten
Malang
Akses air minum:
◦ air irigasi  PG Krebet  air irigasi  kolam penjernihan
◦ Donki milik pesantren (tenaga angin, namun krg efektif)

Implikasi:
◦ penderita diare & penyakit kulit
◦ Konflik AB pada musim kemarau
 • Masa Konstruksi
• WSLIC II, World Bank
• Dana hibah Rp. 200 jt & Swadaya 50 jt (in-cash Rp. 10 jt + in-kind Rp. 40 jt)
• Tim Kerja Masyarakat (TKM) terbentuk  3 x 3 hari pelatihan
2005 (kelembagaan, keuangan, teknik penyediaan air minum)  17 orang

• Masa Operasional  dimulai Maret 2006

• Badan Hukum: Yayasan Sanitasi Sumber Maron BPSABS Sumber Maron
• Pengurus: 9 orang  ketua dipilih scr musyawarah; staf dipilih oleh Ketua
• Pelanggan: 125 sambungan rumah dari target 300 sambungan rumah
2006 • Sosialisasi: warung dan pos kamling
• Dukungan: Pemuka masyarakat – pimpinan pondok pesantren

• Masa Perluasan Jangkauan Layanan

• Agustus 2006: desa Sukosari  penyampaian gagasan kepada pihak Yayasan; pembangunan
tandon = 10 jt pinjaman & 20 juta iuran pelanggan inti
• 2007: desa Bendong Legi Kulon  dana 100% swadaya Yayasan
2006 - • s/d 2010 jumlah pelanggan = 800 sambungan rumah
• Ongkos terbesar: biaya listrik untuk menggerakkan air (= 12 juta/bulan)  pencarian alternatif

2010 tenaga listrik

• Akhir 2010: KKN Mahasiswa UMM & Studi Kelayakan oleh Tim UMM
 • 2nd Generation Project World Bank – WSP
• Pembangunan Pembangkit Listrik Tenaga Mikro Hidro “Sumber Maron” I (2011-
2015)  September 2011
• Total biaya = Rp. 408.084.000
• Swadaya = Rp. 81.616.800 (Iuran Kas)
2011 • Hibah Equitas – AusAid = Rp. 40.808.400
• Pinjaman BPR 1,3% / bln = Rp. 265.658.800
• Pelaksana* BPSABS Sumber Maron dibantu UMM

• April 2014: Operasionalisasi PLTMH Sumber Maron

• Perluasan layanan baru ke desa Punggung Rejo, kecamatan Gading Legi, Kabupaten
2012 Malang

• Perluasan layanan baru ke desa Ganjaran

• Biaya Rp. 400 juta bersumber dari UMKM – bunga 0,007 per tahun
• s/d Mei 2014* total sambungan rumah 1530 rumah
• Kapasitas sumber air baku = 1000 lt/dt (sumber Maron = 400 lt/dt + sumber” kecil =
2014 600 lt/dt)
• Kapasitas produksi = 16,7 lt/dt
SESUDAH TAHUN 2005
IMPLIKASI
Kesehatan
◦ Menurunnya penderita diare & penyakit kulit
◦ Asuransi kesehatan ke polindes bagi pelanggan  Rp. 500,-/bulan dari rekening air
◦ Posyandu lansia & remaja dirempat ayng sudah disediakan
◦ Promosi jamban sehat
Budaya
◦ Menurunnya perilaku BAB di sungai
◦ Munculnya kebiasaan cuci tangan sebelum makan
Lingkungan
◦ Kader lingkungan hidup sehat  18 remaja putri
◦ Penghijauan lingkungan
Ekonomi
◦ Tidak ada konflik air bersih
◦ Kenaikan harga tanah (sawah disekitar pemandian)
◦ Peluang ekonomi lebih baik  60 pengusaha batu bata; penjual & parkir wisata
Terima Kasih