There are three main problems in Indonesia toll road financing model. First, it is the lack of state budget and delayed funding distribution for land acquisition. The second problem is the lack of financial ability of the winning company which leads to financial closing failure. The third problem is related to the land acquisition process that a special purpose company has to obtain for 100% before it can propose a loan from a bank. Therefore, it is essential to develop a new financial modeling to be implemented in Indonesian toll road development. Seven financial models were identified as having been implemented successfully and effectively. These models are earmarked tax revenue, deep discount bonds, take out financing, tax increment financing, land leases, deferred debt, and private donation. However, these models have never been utilized for toll road projects in Indonesia. Therefore, this research aims to explore those seven financial models and determine the most suitable one to be implemented in Indonesia. Literature review and in-depth interview with the key stakeholders were conducted to collect the data. The results subsequently show that there are four models that have never been implemented in Indonesia. However, the combination of deep discount bond and land leases is the most suitable financing model for Indonesian toll road industry.
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