Research Article
Tariff Setting as Investment Guarantee on Public to Private Cooperation in Infrastructure Development
@INPROCEEDINGS{10.4108/eai.6-3-2021.2305978, author={Yosua Lusopatia Tobing and Evita Isretno Israhadi}, title={Tariff Setting as Investment Guarantee on Public to Private Cooperation in Infrastructure Development}, proceedings={Proceedings of the 1st International Conference on Law, Social Science, Economics, and Education, ICLSSEE 2021, March 6th 2021, Jakarta, Indonesia}, publisher={EAI}, proceedings_a={ICLSSEE}, year={2021}, month={5}, keywords={tariff setting; investment guarantee; public to private cooperation; infrastructure development}, doi={10.4108/eai.6-3-2021.2305978} }- Yosua Lusopatia Tobing
Evita Isretno Israhadi
Year: 2021
Tariff Setting as Investment Guarantee on Public to Private Cooperation in Infrastructure Development
ICLSSEE
EAI
DOI: 10.4108/eai.6-3-2021.2305978
Abstract
The construction of infrastructure facilities has traditionally been the government's obligation as the administrator of the state. However, the government may have a limited budget and resources to perform such duties. The government then involves private sectors in building, financing, and managing infrastructure development needs to do. Investors will get a return on their investment through tariffs on the use of such infrastructure facilities. This paper discusses the importance of certainty to the contractual tariff increase for investors while on the other hand, the government needs to consider the public's affordability at the new tariff. The research uses the Indonesian infrastructure project, specifically toll road concession, as a case study.