Environmental Social Governance Integration for Infrastructure Development in Public Private Partnership Toll Road Sector

Abstract

Abstract This study examines the integration of ESG (Environmental, Social, and Governance) principles into Public-Private Partnership (PPP) Scheme for Indonesian infrastructure development. Employing a qualitative method with content analysis, the study reveals that the Ministry of Finance has established an ESG framework for PPP, with implementation already in Toll Roads sector. In the PPP toll road sector, Ministry of Public Works and Public Housing Regulations address ESG considerations, and a monitoring and evaluation system called “Penilaian Jalan Tol Berkelanjutan (JTB)” has been introduced since 2022 to assess ESG performance. Ten ESG-compliant rest areas along the Trans Jawa toll road network have been identified, and Jasa Marga is recognized as the best-performing State-Owned Enterprise (SOE) in managing these toll road rest areas. The study underscores that ESG integration in PPP projects can attract financial access, investments, and government support, ultimately promoting sustainability and enhancing PPP governance. By integrating ESG principles in PPP it can play a pivotal role in advancing sustainability and contributing to the achievement of Sustainable Development Goals (SDGs).