Yogyakarta Bus Terminal: The Private Provision Of Municipal Infrastructure

In January 2009, Herry Zudianto the Mayor of Yogyakarta was reflecting on the apparent failure of his first effort to involve the private sector in the financing and provision of municipal infrastructure. Seven years earlier the City had awarded a 30-year concession to a local private company to build and operate an intercity bus terminal. Earlier that month, the company had sent the Mayor a letter announcing its intention to return the concession on the grounds that the City had not lived up to its commitments. This case is designed to introduce Public-Private Partnerships (PPPs) to an audience that has limited prior exposure to them. The case brings out the various motives or goals for PPPs and the circumstances under which those goals are likely to be sensible and achievable.

This teaching case is available for purchase here.

Authored by Danang Parikesit.

Published by HKS.