Thursday, August 31, 2017

Indonesia Hongkong Business Association One Belt One Road (OBOR) -

  
Hong Kong has transformed a poor refugee community into one of the world’s great cities and created a hugely successful economy. As title:  Uneasy Partners,  Author Leo Goodstadt





Think thankers of Indonesia  from Director of Business Development, Entrepreneurs and Academic Project Directors and Landscape Master Planner are on the way to listen and take an opportunity to create and transform his or her brainstorming idea to curate, investable and tradeable  idea as OBOR Perspective has been voiced since October 2013 When Chinese leader Xi Jinping visited Central Asia and Southeast Asia initiative of jointly building the Silk Road Economic Belt and the 21st-Century Maritime Silk Road in Indonesia. Today forum is Public Private Partnership Introduction. According to Meng Chun, Development Research Center (DRC) : PPP Model is adaptable to the One  Belt One Road Initiative in China, Moreover historically PPP has been implemented by China Central governmnet since 1994  as" Local administrative measures on the concession of municipal public utilities in Huherhaote and Hainan." The reasons are threefold according to Mr. Chun to select PPP framework 

1.   Market-based and an innovative and socialized public service supply management model, and its major character is for fair competition, equal cooperation, risk sharing, and benefit sharing.

2.    The cooperation of related countries outside China  in infrastructure investment and construction is becoming closer. From January to November 2016, the non-financial direct investment made by China's enterprises to 53 countries related to the One Belt and One Road Initiative reached $13.35 billion, accounting for 8.3% of the total amount in the same period; the number of new overseas contracted projects stood at 7367, and the new contract amount reached $100.36 billion, an increase of 40.1% year on year, accounting for 52.1% of the contract amount of China's new overseas contracted projects.

3. Countries and limited participation of social capital, but PPP model as a major innovation in public service supply mechanism has broad prospects.


Hongkong Trade Development Council has invited speakers  Gregoire Bouzereau as Director of Infrastructure and Real Estate Group HSBC to introducing PPP scheme but not yet to detailing study case in South East Asia Indonesia particularly and   Julian Smith as Adviser PT Pricewaterhouse Cooper Indonesia to coordinate  a loose framework of PPP as a way to  share risk and other entity financing project in Indonesia.  As PPP framework has been around in Indonesia project since 2009 as part of Asian Development Bank need to be certified by so the  missing connection (OBOR) Initatives that transform  Proper Financing and Feasibility Study for Investment Realisation.

The Indonesian Research and Development International (IRDI)  under coordinating Board of  Vince Gowan  has leading  as the connector agent from curious independent researcher to one outstanding question to audiences that  somehow able to differentiate pros and cons the financing Build Operate Transfer (BOT) and financing on Public Private Partnership (PPP). The speaker has not able to derive in detail but  more this article provide a basis understanding why PPP financial scheme is in selective choice In Indonesia. Indonesia prior has implemented strategy framework policy PPP to project Implementation since 2005 under Asia Development Bank

The reason why PPP is priority guideline  to One Belt One Road Initiative  is not because Jokowi Government is in favor to China Direct Foreign Investment but more reasons are:

1. Bappenas and its agencies has published a PPP book 2017 with 22 projects description.
3. For more  the North Sulawesi PPP project has been illustrated by Bappenas underlying  are 
 .
1. Menado Bitung Toll Road (Underconstruction)
2. Development of Bitung International Hub Port (project preparation)
3. Sam Ratulangi Teaching Hospital (project preparation).




From Business to Business, Business to Client today forum by Hongkong Indonesia AssociationTrade has pronounced People to People or Piece of Project to Piece of Project in expecting transformation of   collective idea to a set of  curate and investable  and tradable information for a realization of project.  

Public-Private Partnership Projects in Infrastructure by Delmon that coverage the topic as summarize below: 

Investment in infrastructure is critical to economic growth, quality of life, poverty reduction, access to education, healthcare, and achieving many of the goals of a robust economy. But infrastructure is difficult for the public sector to get right. Public-private partnerships (PPPs) can help; they provide more efficient procurement, focus on consumer satisfaction and life cycle maintenance, and provide new sources of investment, in particular through limited recourse debt. But PPPs present challenges of their own. This book provides a practical guide to PPPs for policy makers and strategists, showing how governments can enable and encourage PPPs, providing a step-by-step analysis of the development of PPP projects, and explaining how PPP financing works, what PPP contractual structures look like, and how PPP risk allocation works in practice. It includes specific discussion of each infrastructure sector, with a focus on the strategic and policy issues essential for successful development of infrastructure through PPPs.

Click Here to Buy it


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