Pramudya, A A and Wibowo, A (2022) Ranking risks of BOT toll road investment projects in Indonesia using fuzzy interpretive structural modelling. Construction Economics and Building, 22(4), pp. 59-80. ISSN 2204-9029
Abstract
The Government of Indonesia implemented the Build, Operate, and Transfer (BOT) model, relying on private investment to bridge the financing gap in developing public infrastructure facilities, including toll roads. Toll road investments, like other greenfield infrastructure projects, are typically characterized by high project risk, which discourages private sector investment. Many previous studies have investigated the various risk events in toll road investment projects, but only a few have assessed the interrelationships of risk events in the Indonesian context. This study fills this knowledge gap by determining which risk event influences other events most. Fuzzy interpretive structural modelling combined with the matrix impact of cross-references multiplication applied to a classification method was used to determine the hierarchy of risk events and analyze their influences on other risk events. A total of fourteen risk events were identified and analyzed. An unclear output specification was found to be the most significant risk event, with the biggest driving power affecting other risks. The findings and limitations of this study point the way forward for future research.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | private sector; bridge; specification; financing; government; public infrastructure; Indonesia; infrastructure project; investment |
| Index terms: | public infrastructure, Indonesia, financing, interpretive structural modelling, infrastructure project, private investment, specification, toll, private sector |
| Subjects: | Geography, transportation engineering, infrastructure and transport systems, data analysis and analytics, industry analysis, economic analysis, contractual condition |
| Topics: | Contract Administration, Research Practice, Business Strategy, Procurement, Geographical Context, Engineering Principles |
| Descriptive scope: | 3 PCA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here