Financial Sharing in Infrastructure Joint Venture Projects

Abstract

Objective: The purpose of this paper is to identify the financial sharing limitation in contractor’s infrastructure project in joint venture implementation. Methodology: Using the quantitative method, the questionnaires, constructed based on external and internal variables were distributed to the selected respondents. The analysis of the data is conducted with simple SPSS analysis to identify the mean, median and standard deviation. The ranking of the variables is drawn from the results. Results: The outcome of this research has found that the crucial external limitations are penalty to the foreigners and that market legislation requires limitation in the sharing proportion. Meanwhile, for the internal limitation the ownership control and rate fluctuation should be followed with certain marking lines. Implication: Thus, this paper stimulates the joint venture contractor to set up the post financial remedial plan once one of the collaborative partners breaches the agreement on the joint venture due financial limitation.