NEWINERANEWINERA

Journal La SocialeJournal La Sociale

This study aims to identify and evaluate risk related to financial in Public-Private Partnership projects specifically on affordable housing sector in Indonesia. The research was conducted using a qualitative-descriptive approach supported by a structured questionnaire survey distributed to government and private sector stakeholders. The assessment method applied is the Probability-Impact Matrix, which enables systematic evaluation of each risk based on its likelihood of occurrence and its potential impact on project performance. The results indicate that land provision and dependence on public funding are the most significant financial risks, categorized as high and very high levels. Other identified risks include credit and loan availability, construction cost fluctuations, and investment funding stability, all of which pose varying degrees of concern. The study also highlights the importance of experience, position, and educational background of the respondents in providing comprehensive insights into risk perception. The findings conclude that proactive financial risk mitigation, including appropriate cost-sharing mechanisms and contingency planning, is crucial for the sustainability of affordable housing PPP projects. This research offers valuable input for policymakers and private stakeholders in designing more resilient future for infrastructure development.

This research identified land acquisition and dependence on public funding as the most significant financial risks in PPP affordable housing projects in Indonesia.The study emphasizes the importance of appropriate risk management strategies, including financial responsibility allocation between the public and private sectors, to mitigate these risks.It is recommended that collaborative efforts between the public and private sectors focus on developing flexible financing mechanisms and establishing contingency funds to enhance the sustainability of affordable housing initiatives.

Future research should investigate the impact of external factors like political instability and environmental risks on the financial viability of PPP affordable housing projects. Furthermore, studies could explore the effectiveness of different risk-sharing models and financial instruments tailored to the Indonesian context, considering the unique challenges of land acquisition and public funding limitations. Finally, research is needed to develop a comprehensive framework for assessing the long-term financial sustainability of these projects, incorporating lifecycle cost analysis and sensitivity analysis to account for potential economic fluctuations and policy changes, ultimately contributing to more resilient and successful affordable housing developments in Indonesia.

  1. View of Reinventing Social Policy in Housing Finance Policies for Low-Income Communities. view reinventing... ijrss.org/index.php/ijrss/article/view/359/234View of Reinventing Social Policy in Housing Finance Policies for Low Income Communities view reinventing ijrss index php ijrss article view 359 234
  2. Understanding Financial Risk Dynamics: Systematic Literature Review inquiry into Credit, Market, and... doi.org/10.57178/atestasi.v7i2.927Understanding Financial Risk Dynamics Systematic Literature Review inquiry into Credit Market and doi 10 57178 atestasi v7i2 927
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