JAPAN’S PRIVATE FINANCE INITIATIVE (PFI) AS A MODEL TO ACCELERATE TSUNAMI EVACUATION SHELTER DEVELOPMENT IN WEST SUMATERA PROVINCE, INDONESIA

Coastal area of West Sumatera province, Indonesia is facing a tsunami hazard from Indian Ocean. Tsunami Evacuation Shelter (TES) is one of tsunami hazard countermeasure especially for dense and flat areas like coastal cities. Unfortunately, the Indonesian government has limited budget to build adequate number of TES. This paper is aimed to discuss another alternative in funding TES development rather than just rely on government's money. Japan's Private Finance Initiative (PFI) model can be adopted to cope with this problem by inviting private sector involvement in TES provision. With suitable cost recovery model and clarity in responsibility and risk sharing, this “half business-half humanitarian” project will be more attractive for the private sector. This approach will transform the TES from an empty emergencypurpose building into a vibrant business-friendly building. Despite its opportunities, there are some challenges have to be resolved first regarding the need of new regulations or deregulation, institutional transformation, contract definition, risk allocation, and also independence and transparency among parties to guarantee the successful result.