Assessing Risk Management Capability of Public Sector Organizations Related to PPP Scheme Development for Water Supply in Indonesia
Abstract: The success of
Public Private Partnership (PPP) for water supply investment is inseparable
from the capability of risk management of the parties within the project. This
study investigates the risk management capability of Indonesian local public
sector organizations that are potentially involved in PPP schemes for water
supply. A risk management maturity model based assessment tool probing the
culture, process, experience, application and partnership aspects is used in
the survey. The model describes risk management capability in four levels
(ad-hoc, initial, competent, excellent). The survey shows that their risk
management capability is still in-average at the initial stage (level 2),
meaning that the adopted risk management postures are mostly supported only by
unstructured, ad-hoc and non-formal processes. The result of this study can
help decision makers in choosing appropriate risk management methods and tools
to be used by the local public authorities for managing risks in PPP schemes.
Keywords: Public private
partnership, concession scheme, water supply, risk management, maturity model,
public sector organization
Author: Pangeran M.H., Pribadi
K.S., Wirahadikusumah R.D., Notodarmojo S.
Journal Code: jptsipilgg120019
