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© Journal of Health, Sport and Tourism ISSN: 2078-0273, Vol. 5. No. 1, 2014 Ida B.P. Adnyana, N. Anwar, C. Utomo. Regression model of public-privatee-community partnership in tourism infrastructure development. Journal of Health Sport and Tourism 2014; 5(1), 24-30. DOI: 10.7813/jhst.2014/5-1/4

REGRESSION MODEL OF PUBLIC-PRIVATEE-COMMUNITY PARTNERSHIP IN TOURISM INFRASTRUCTURE DEVELOPMENT 1

2

Ida Bagus Putu Adnyana , Nadjadji Anwar , Christiono Utomo

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Doctoral Program in Construction Project Management, Institut Teknologi Sepuluh Nopember Faculty of Civil Engineering and Planning, Institut Teknologi Sepuluh Nopember (INDONESIA) E-mails: [email protected], [email protected], [email protected]

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DOI: 10.7813/jhst.2014/5-1/4 Received: 04 Jan, 2014 Accepted: 05 May, 2014

ABSTRACT According to the National Development Planning Agency (Bappenas), the limited budget of the Government of Indonesia to improve public facilities can be resolved through the approach of PublicPrivatee Partnership (PPP). PPP beneficial for the stakeholders involved in such cooperation, among others, the transfer of technology, transfer of risk, and increase accountability. Until now, the PPP has notinvolved the active participation of the community, it is necessary to add an element of society in the PPP so-called Public-Privatee-Community Patnership (PPCP). This study aims to obtain regression models PPCP and explore the implementation of cooperation involving local communities of Bali (Balinese traditional village). Factors influencing PPPC obtained from the literature study and preliminary survey of PPP. The dominant factors that influence the input used to obtain regression models PPCP success. Respondents totaled 90 people, came from the regency level agency heads such as: the Privatee sector at management level, community represented by BendesaAdat (Indigenous chairman), Penyarikan (secretary) and jururaksatreasurer. Results of the questionnairecollected data resulted in a significant index (rate of interest) and subsequently analyzed with the ”factor analysis” to determine the dominant factors affecting PPCP. Factors dominant factor inputs used to create regression models PPCP success. This study resulted in the regression equation PPCP success (Y) = 0.790 + 0.009 Socio-Culture+ 0.006 Procurement + 0.015 Law + 0.019 Risk + 0.019 Consortium + 0,020 Technical + 0,006 Economics + 0,005 Financial + 0.007 Technology. Key words: PPP, PPCP, Community, Dominant Factor, Regression Models, Infrastructure, Bali 1. INTRODUCTION The development of infrastructure is to support economic activity of a country, especially in developing countries. On the other hand a very limited budget to build infrastructure in a short time, therefore it is necessary to accelerate the development of infrastructure PPP [1]. Presidential Decree No. 13 of 2010 is an amendment to Presidential Decree No. 67 of 2005 on Public-Privatee Partnership (PPP), which saw two stakeholders, namelyPublic and Privatee. The concept of PPP does not involve the active participation of the local community; it needs to make a model of Public-Privatee-Community Partnership (PPCP). PPCP involves three stakeholders, namely publict, Privatee, and community. The important issue of PPP in infrastructure development is the selection of the Privatee partner [2]. It requires a special methodology to establish the best Privatee partner who will be a partner for the public. Efforts active participation approach implementation in Indonesia [3]has led to a variety of perceptions and interpretations vary about the meaning of participation. The approach that has been taken by the public that comes from the top down is often called top-down should have been abandoned. Regional autonomy is being encouraged. Any type of project should be a public proposal from the bottom, which will benefit the local community [4]. Communities in Bali called Balinese traditional village. Balinese traditional village is the unity of indigenous people in the province of Bali which has a tradition of unity and social life ordinances

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© Journal of Health, Sport and Tourism ISSN: 2078-0273, Vol. 5. No. 1, 2014 hereditary Hindu community in bond of Tri KahyanganTigaor village that has a particular area and its own assets and reserves the right to manage his own household [5]. Previous studies only discuss the factors that influence the PPP. Those factors are financial, consortium, technical, government guarantees, conditions of the project, and risk sharing. The study was conducted by Li. et.al in 2005, discusses the identification of Critical Success Factor in the PPP in the UK;Tiong in 1996 to discuss the identification of Critical Success Factor in BOT projects; and Zhang in 2005 to discuss the identification of Critical Success Factor in infrastructure development. Based on these phenomena, so it needsPPCP models on infrastructure development of tourism in Bali. PPCP on infrastructure development in Bali include PPCPUjung[6], PPCP Tanah Lot [7], PPCPUlundanuBeratan[8], PPCP Goa Lawah[9], PPCP Goa Gajah [10], PPCP PasirPutihBugerasi[11], PPCPKertalangu[12], PPCPMulya[13]and PPCPGWK[14]. Model PPCP on tourism infrastructure development needed to implement the partnership of three stakeholders, namely public, Privatee, and community. 2. PROBLEMS The above research problems is how PPCP regression model based on the dominant factors in the development of tourism infrastructure? 3. OBJECTIVE OF RESEARCH Getting PPCP regression model based on the dominant factors in the development of tourism infrastructure. 4. ORIGINALITY OF RESEARCH b) Include the active participation of local communities in the PPP in Indonesia. b) Getting PPCP regression model based on the dominant factors in the development of tourism infrastructure. 5. METHODOLOGY OF RESEARCH This study uses primary data and sekender. To obtain the regression model PPCP success, will be the stage of this research as follows : 1. Seeking dominant factors that affect the partnership of public, Privatee and community obtained from previous studies, by the way: a. The study of literature and the pre-survey to search for variables that affect collaboration involving public, Privatee sector, and local communities. b. Making research instruments such as questionnaires and unstructured interviews as well as to test the validity and reliability. c. Conducting interviews and distributing questionnaires to the respondents to validate the factors previously arranged. d. Entered into the data processing of the results of questionnaires with statistical approach, namely factor analysis. 2. Dominant variable and similar variables grouped and named the dominant factor affecting PPCP. 3. Based on the dominant factors affecting PPCP created regression models PPCP success. 6. RESULTS 6.1. Public-Privatee Partnership (PPP) PPP is a public-Privatee partnership involving a huge investment/capital intensive where the Privatee sector to finance, build, and manage infrastructure and facilities, while the government as partners who handles care setting, in this case remain as owners of assets and controlling the implementation of cooperation [15].

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© Journal of Health, Sport and Tourism ISSN: 2078-0273, Vol. 5. No. 1, 2014 Actually Build-Operate-Transfer (BOT) is a form of the concession contract. Concession contract [16]can be: Build-Own-Operate, Build-Lease-Transfer, Build-Own-Operate-Maintain, BuildOwn-Operate-Transfer, Build-Transfer-Operate, Design-Build-Finance- Operate, Design-BuildOperate, Design-Build-Operate-Maintain, Rehabilitate-Own-Operate, Rehabilitate-Operate-Transfer. The main difference from some form of PPP in the ownership, investment and commercial risks based research organization for economic co-operation and development[17]can be seen in Table 6.1. Table 6.1. Characteristics of Alternative Forms of PPP Operation & Maintenance

Ownership

Investment

Commercial Risk

Duration (year)

Management Support

Public & Private

Public

Public

Public

1-2

O&M Leasing Concession DBO

Private Private Private Private

Public Public Private Public

Public Semi-Private Private Private

3-5 8-15 20-30 20-30

BOT/BOO

Private

Public Public Public Public Public & Private

Private

Private

20-30

Source:[17]

Based on the type and characteristics of the above contracts are commonly used variant of the scheme for Build-Own-Operate-Transfer (BOOT) is the Build -Operate-Transfer (BOT) that have characteristics appropriate to the infrastructure projects and the allocation of risk is needed [18]. Based on the decomposition of the above forms of PPP, it can be said in general that cooperation BOT is a variant that is often used to increase Privatee participation for infrastructure development in the region [19]. Problems often occur in developing countries [20] include: legal issues, the environment, the risk of unexpected, high-cost, effective determination of concession period, the contract clause issues, and risks to the operate phase. Critical Success Factor (CSF) is one of the company's activities that impact on the ability of the company to achieve its objectives. CSF is similar to the concept of management by exception in terms of focusing on the portion of a company's overall operations but CSF is more stable while management by exception can change from one period to the next [21]. PPP in the field of regional planning and development of tourism in northern Brazil, examines theexploration influence of socio-economic and politicalcontent, to the arrangement of cooperation in the development of regional tourism. Cooperation between the organizations studied were various government spatial scale and level of functioning [22]. The study of cooperation in tourism, and on marketing alliances and networks, the national tourism organization (NTO) and Privatee non-profit organizations in Malaysia. Research presented inthe Event Tourism and Destination Management International conference 2003 in China, to comprehensively assess the inter organizational alliances, partnerships and networking relationships between the Malaysian Tourism Promotion Board with Privatee organizations and non- Privatee [23]. In Indonesia, the policy of cooperation in tourism development in depth discussion about the issue of Public and Privatee Sector Partnership in the field of tourism, has been raised in Yogyakarta tourism symposium in 2001. Activity is part of a meeting of East Asian Inter-Regional Tourism Forum(EATOF) annual. 6.2. Community in Bali Community in Bali who are in the neighborhood region called the traditional village. Existence of traditional village in Bali is recognized by Article 18 UUD 1945 and confirmed by the Bali Provincial Regulation No. 6 of 1986, which regulates the position, function, and role of traditional village as a unit of indigenous people in the Province of Bali. Institutions of traditional village is permanent and based on the Tri Hita Karana[24]. Understanding Traditional Village has been formally stated in Article 1 (c) of Bali Provincial Regulation No. 6 of 1986, which states that the Traditional Village is the unity of indigenous people in the Province of Bali which has a tradition of unity of social life and manners hereditary Hindu society in bonds of Tri Kahyangan Tiga that have a particular area and their own property and the right manage his own household.

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© Journal of Health, Sport and Tourism ISSN: 2078-0273, Vol. 5. No. 1, 2014 Balinese Traditional village has the following characteristics: 1. Having a region with certain limits. 2. Having a clear members with specific requirements. 3. Having Tri Kahyangan Tiga 4. Having autonomy either out or into. 5. Having a customary rule management (prajuru adat) itself is based on its rules themselves (awig awig) both written and unwritten [25]. 6.3. Tools for Analysis This research uses tools statistical theories to obtain the dominant factors affecting the development of tourism infrastructure. This study is an exploratory study, comparative, and descriptive.Statistical tests in this study are to test the validity, reliability, and factor analysis. To obtain quantitative data on the degree of importance of a factor/variable in the questionnaire to describe the critical success factors, the perception created in the charging interval scale is a scale that shows the distance between the data with others and have the same weight [26] by providing scores on each answer. For that, scaled with the rating scale, where the raw data obtained in the form of numbers and then interpreted in a qualitative sense. In a scale model of the rating scale, respondents will answer one quantitative answer that have been provided. Validity indicates the extent to which a measuring device is able to measure what you want to measure, while reliability is a term used to indicate the extent to which a measurement result are relatively consistent if the measurement is repeated twice or more [27]. Factor analysis is a multivariate statistical analysis technique that aims to reduce the data. This analysis attempts to discover the relationship between each independent variable that can be made of one or a set of variables is smaller than the initial number of variables. According [28]factor analysis is a technique that describes the relationship between the diversity of multiple variables in a small number of factors, in which variables have a high correlation grouped in one group (factor), whereas the correlation between variables in a group with other groups relative small. Between variables in a particular group has a very strong relationship, but the other variables in the other groups have a relationship that is comparatively small. Factor analysis can be used to identify and locate some concepts, the main factor, commonly called Exploratory Factor Analysis[29] 6.4. Previous Research The aspects that affect the success factors of PPP with the BOT scheme in previous research can be seen in Table 6.2. Table 6.2. Aspects Affecting PPP on Previous Research No 1 2 3 4 5 6 7 8

Aspect Financial Consortium Technical Government Guarantees Risk Sharing Procurement Services Social Culture

(Zhang, 2005)    X  X X X

(Tiong, 1992)     X X X X

(Li., 2005)     X  X X

Description: √: Aspects to be reviewed. X: The aspect that has not been reviewed 7. DISCUSSION Validity of the test results with the help of software SPSS 20 for Windows. Of the 72 variables tested its validity, there are three variables that are not valid are: Funding is budgeted stable (A2), and interest rates remain low (E1), the Competition is not much on the type of business (F4). The value of r table to test questionnaires 27 respondents is 0,381, obtained from 69 valid factors. Factors that are not valid are removed from the model, and are not included in the subsequent analysis.

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© Journal of Health, Sport and Tourism ISSN: 2078-0273, Vol. 5. No. 1, 2014 The results of the reliability test of the factors that affect PPCP, the financial variables, the consortium, technical, government guarantees, economics, project conditions, risk, procurement, Socio-cultural, legal, and administrative obtained alpha values (alpha r), respectively for 69.3%; 71.5%; 77.5%; 80.6%; 68.7%; 76.2%; 86.2%; 63.3%, 83.2%; 60.1%, and 64.1%. Seen that all the alpha value has a value greater than 60% so that it can be concluded that the grains of question is reliable. Previous research concluded that the dominant factors affecting the Public-Privatee Partnership Society (PPCP) on the development of tourism infrastructure, acquired nine highly influential factors are : Socio-cultural factors (values diversity of 4.424%), legal factors (2.822%), factors procurement (2.755), risk factors (2.729%), a consortium factor (2.498%), technical factors (2.219%), economic factors (2.176%), financial factors (2.026%), and technological factors (1.637%). Multiple linear regression equation was to determine the influence of the dominant factors that influence the PPCP. The success of PPCP (dependent variable) depends on the factors that have been obtained from the analysis of previous factors (independent variables). Respondents rating scale of 1 to 5 with an assessment of the respondent is not the latent variable, so it needs to be composited (combined). All respondents rating each factor has been derived from factor analysis were united into a single factor. Based statical output obtained number-adjusted R Square of 27.7%. This shows that the percentage contribution of the independent variables,namely: social, cultural, procurement, legal, risk, consortium, technical, economic, financial and technological success to variable PPCP by 27.7%, or variations of independent variables used in the model is able to explain at 27.7% variation in the dependent variable. While the rest influenced by other variables not included in this research model. Regression equation of success PPCP (Y) = 0.790 + 0.009 Socio-Cultural (X1) + 0.006 Procurement (X3) + 0.015 Law (X2) + 0.019 Risk (X4) + 0.019 Consortium (X5) + 0.020 Technical (X6) + 0.006 Economy (X7) + 0.005 Financial (X8) + 0.007 Technology (X9). The calculation of the regression equation can be seen in Table 7.1. Constant of 0.790 means that if the variable sociocultural, legal, procurement, risk, consortium, technical, economic, financial and technological value is 0, then the success of PPCP value amounted to 0.790. Regression coefficients of the variables of socio-cultural factors amounted to 0.009; this means that if the socio-cultural factor increases one unit, then the success of PPCP will have increased 0.009 units with assuming other factors remain constant. The success of PPCP highly is depended on technical factors, risks, and consortium. Tabel 7.1. Regression Coefision of PPCP

Dependent Variable: PPCP Source: Result of Analysis (2013)

8. CONCLUSIONS Based on the analysis and discussion, the regression model of Public-Privatee-Partnership Cummunity (PPCP) on infrastructure development can be formulated as follows: PPCP (Y) = 0.790 + 28

© Journal of Health, Sport and Tourism ISSN: 2078-0273, Vol. 5. No. 1, 2014 0.009 Socio-Culture + 0.006 Procurement + 0.015 Law + 0.019 Risk + 0.019 Consortium + 0.020 Technical + 0.006 Economics + 0.005 Financial + 0.007 Technology. REFERENCES 1. Bappenas, Kerjasama Pemerintah dan Swasta (KPS). 2010: Jakarta. 2. Zhang, Critical Success Factors for Public Privatee Partnership in Infrastructure Development. Journal of Construction Engineering and Management, 2005: p. 131(1), 3-14. 3. Ministry of Home Affairs, Attempts of participatory approach in Indonesia. 1992, Goverment of Indonesia: Jakarta. 4. Wilmsen, Pendekatan Partisipatif dari Bawah ke Atas. 2008. 5. Perda Prop. Bali No. 3, Perubahan atas Peraturan Daerah Provinsi Bali Nomor 3 Tahun 2001 Tentang Desa Adat. 2003, Biro Hukum dan Ham Setda Provinsi Bali: Denpasar. 6. Pemkab Karangasem, Penetapan Dewan Pembina, Pembina Teknis, dan Badan Pengelola Daya Tarik Wisata Taman Sukasada Ujung Kabupaten Karangasem. 2010, Perbup dan Puri Agung Karangasem. 7. Pemkab. Tabanan, Kerja Sama Pengembangan Obyek Pariwisata Tanah Lot. 2000, Dinas Pariwisata: Tabanan, Bali. 8. Pemkab. Tabanan, Kerja Sama Pengembangan Daya Tarik Wisata Ulun Danu Beratan. 2011, Dinas Pariwisata: Tabanan, Bali. 9. Pemkab. Klungkung, Kerja Sama Pengembangan Obyek Wisata Gua Lawah. 2005, Dinas Pariwisata: Klungkung, Bali. 10. Pemkab. Gianyar, Kerja Sama Pengembangan Obyek Wisata Gua Gajah. 2010, Dinas Pariwisata Gianyar, Bali. 11. Pemkab. Karangasem, Pengembangan Kawasan Pasir Putih Perasi-Bugbug Tahap I. 1991, Dinas Pariwisata: Kangasem, Bali. 12. Kota Denpasar, Kerjasama Pemerintah-Swasta-Masyarakat Kertalangu. 1998, Dinas Pariwisata: Denpasar. 13. Pemkab Badung, Kerja Sama Pemerintah-Swasta-Masyarakat Pembangunan Hotel Mulia. 2012, Dinas Pariwisata: Badung. 14. Pemkab Badung, Kerja Sama Pemerintah-Swasta-Masyarakat Pembangunan Garuda Wisnu Kencana. 1998, Dinas Pariwisata: Badung. 15. Kurdi M.Y., The Development of Public Privatee Partenership in Infrasructure. 2004, Jakarta: Gramedia Pustaka Utama. 16. Zhang X. and Kumaraswamy. Paving the Way for Privatee finance in public infrastructure projects, Proc., Int’l, Conf., on Construction. 2001. Hongkong. 17. OECD, Investment for African Development: Making It Happen; Encouraging Public Privatee Partnership in the Utilities Sector: The Role of Development Assistance, Background information in support of session 5 of roundtable sponsored by The Government of Uganda, Organization for Economic Co-Operation and Development (OECD) Investment Initiative,.(http://www.OECD.org), 2005.May. 18. Tiong, Risks and Guarantees in BOT Tender. Journal of Construction Engineering Management, 1995: p. 121 (2), 183–188. 19. Ramdani D.M.A., Analisis Sistem Kelembagaan dan Pendanaan Pada Pengembangan Infrastruktur Kereta Api dalam Kerangka Kerjasama Pemerintah dan Swasta (Studi Kasus di Propinsi Banten), in Tesis, Program Studi Teknik Sipil, kekhususan Manajemen Proyek. 2004, Universitas Indonesia. 20. Askar M.a.G.-A., Problems Facing Parties Involved in Build, Operate and Transfer Projects in Egypt. Journal of Management in Engineering 2002: p. 18(4), 173-178. 21. McLeod R., Sistem Informasi Manajemen, Edisi Bahasa Indonesia. 1995, Jakarta: PT Prenhallindo. 22. Lidenberg MdA and Bill Bramwell, Partnership and Regional Tourism in Brazil,annals of Tourism Research. A Social sciences Journal, 2002.Vol. 29 Number 4. 23. Othman. Nor' Ain, Marketing Alliances and Network between National Tourism Organization (NTO) and Profit/Non Profit Organization: The Case for Malaysia, in The event Tourism and Destination Management International Conference. 2003, The International Geographical Union (IGU) in China.

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© Journal of Health, Sport and Tourism ISSN: 2078-0273, Vol. 5. No. 1, 2014 24. Perda Prov Bali No. 6, Tentang kedudukan, fungsi dan peranan desa adat sebagai kesatuan masyarakat hukum adat dalam propinsi daerah tingkat I Bali. 1986, Pemda Tingkat I Bali: Denpasar. 25. Pitana, Dinamika Masyarakat dan Kebudayaan Bali. 1994, Denpasar: BP. 143-144. 26. Sugiono, Metode Penelitian Bisnis. Alfabeta, ed. C. Keenam. 2005, Jakarta: CV Bandung. 27. Singarimbun, Metode Penelitian Survey. 1996, Jakarta: LP3ES. 28. Supranto, Analisa Multivariat: Arti dan Interpretasi. 2004, Rineka Cipta: Jakarta. 29. Supranto J., Analisis Multivariat: Arti dan Interpretasi. 2004, Jakarta: Rineka Cipta.

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