Case : Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure
Case : Yogyakarta Bus Terminal: The Private Provision of Municipal Infrastructure Questions: 1. Is the bus terminal project a success or failure? Cite the “success” or “failure” specifically from the case story
In the short run the project is success but in the long run it is failure. The reason is as below:-
1. Short run success evaluated based on stakeholders benefit and motive analysis:-
Benefit & Motivation (Stakeholders) Indicator: Success/Good Performance
Political Context
1.Get highest share of operating profits.
Revenue was triple from IDR 100 Million to over IDR 300 million per year.
2.The revenue came from the city’s seventy percent share of the terminal operating profits.
3.Removal of binding public capital constraint though private partnership
Motive: Fullfill mandate to provide public infrastructure Financial achievements-
-In term of Profit for both government and
PPTK shareholders
-Acceleration of infrastructure provision
-Reduced whole life costs
-Reduce overall financial risk for governance Organizational Context
1. Give opportunity to local resident with sprit “Jogjanese invest for Jogja Development”.
2. Cash flow was stronger than projected –more profit.
3. The organization asked to develop other facilities that can increase the revenue
4. Not complicated tender documents.
1. 5. Can run for 28 years before hand over to the municipal.
2. Motive : Projected return on investment based on equity contributed and social responsibility spirit) -Having technical expertise and possessing sufficient financial strength
-Strong Institutions with appropriate resources (Capacity)
-Generation of additional revenues planning (more commercial development)
-Less bureaucratic public management (focus on results/outcomes not project/inputs/documents and trapping agreements)
-Better incentives to perform (long term tenure) Economic & Social Context
1. Highest Quality Terminal to accommodate growing inter
In the short run the project is success but in the long run it is failure. The reason is as below:-
1. Short run success evaluated based on stakeholders benefit and motive analysis:-
Benefit & Motivation (Stakeholders) Indicator: Success/Good Performance
Political Context
1.Get highest share of operating profits.
Revenue was triple from IDR 100 Million to over IDR 300 million per year.
2.The revenue came from the city’s seventy percent share of the terminal operating profits.
3.Removal of binding public capital constraint though private partnership
Motive: Fullfill mandate to provide public infrastructure Financial achievements-
-In term of Profit for both government and
PPTK shareholders
-Acceleration of infrastructure provision
-Reduced whole life costs
-Reduce overall financial risk for governance Organizational Context
1. Give opportunity to local resident with sprit “Jogjanese invest for Jogja Development”.
2. Cash flow was stronger than projected –more profit.
3. The organization asked to develop other facilities that can increase the revenue
4. Not complicated tender documents.
1. 5. Can run for 28 years before hand over to the municipal.
2. Motive : Projected return on investment based on equity contributed and social responsibility spirit) -Having technical expertise and possessing sufficient financial strength
-Strong Institutions with appropriate resources (Capacity)
-Generation of additional revenues planning (more commercial development)
-Less bureaucratic public management (focus on results/outcomes not project/inputs/documents and trapping agreements)
-Better incentives to perform (long term tenure) Economic & Social Context
1. Highest Quality Terminal to accommodate growing inter