This case is designed to illustrate the challenges associated with urban infrastructure development as they relate to the transportation sector and public-private partnerships (PPPs). Jakarta’s monorail provides an excellent example of the trials and tribulations facing decision makers in this context. Resolving infrastructure logjams in developing countries is messy: local institutions cannot always manage a transparent and competitive bidding process, while the range of bidders is constrained by the existing vested interests in the public and private sectors. The prospects for a sustainable solution may be limited in this context. However, in a difficult business environment, certain PPP structures can still succeed with strong government support and a robust risk mitigation strategy. Given all of the complexity in developing countries, strong political leadership and the strategic alignment of actors and interests can produce results, imperfect as these results may be. For now, Mr. Soeryadjaya’s eagerness to tap into Jakarta’s infrastructure market and public support for public transit have placed the monorail project on solid ground.
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