A New Financial Model of Toll Road Infrastructure

The development of toll road in developing countries especially in Indonesia was very slow. Although the Government of Indonesia has an accelerated toll road plan for 2020 was 4,000 km, but toll road length in 2013 was still 784 km. Because of that, the gap of toll road length in Indonesia has to be filled; one of the ways is to develop a new financial model as not business as usual. Existing financial model for toll road in Indonesia case had been built by Wibowo and Kochendorfer (2005), the model based on project financial risk at public private partnership delivery especially in build operate transfer (BOT). At the present, the problem of toll road development in Indonesia is more complex, so the model should be adjusted with real problems. This paper wants to develop a new financial model for toll road infrastructure with systematic review and meta analysis method; this new financial model can be expected to accelerate toll road development in Indonesia. The result of this paper is a new financial model that influenced by some factors: land leased, project delivery, tax increment financing, and Value for Money analysis.