Sharia Public–Private Partnerships Infrastructure in Indonesia: A Framework for the Operational Phase
DOI:
https://doi.org/10.24191/bej.v23i2.8973Keywords:
infrastructure, operational, public-private partnership, PPP, sharia PPPAbstract
In recent years, local governments and central ministries in Indonesia have demonstrated growing interest in Sharia Public–Private Partnerships (PPPs) as a mechanism for accelerating infrastructure development. The novelty of this study lies in its explicit focus on the operational phase of Sharia PPPs, a critical stage characterised by sustained project execution and long-term engagement with communities. To date, existing studies and policy discussions in Indonesia have largely concentrated on the planning and financing phases of Sharia PPPs, with limited attention given to operational realities. This study employed semi-structured interviews with 22 experts representing business practitioners, government institutions, and multilateral agencies or professional associations. The findings identified four overarching themes that reflect key challenges and opportunities in managing Sharia-compliant PPP infrastructure financing in Indonesia: dissemination of Sharia PPP operations, PPP management preparation, monitoring the implementation of the PPP agreement, and concession termination. Each theme is further elaborated through supporting subthemes and detailed empirical insights. These findings contribute new understanding of Sharia PPP operations in the Indonesian context and provide practical guidance for policymakers, investors, financial institutions, and practitioners seeking to strengthen Sharia-compliant partnerships for sustainable infrastructure development. However, as the findings are broadly applicable across infrastructure sectors, future research is required to develop sector-specific analyses and policy adjustments aligned with the distinct priorities of relevant ministries and local governments.
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