The Challenges of Public Private Partnership in Indonesia: Case Study in Makassar City, South Sulawesi Province A Hans 1 , H Munsi 2 , S Fatimah 3 , AM Fahrul 4 1,2,4 Universitas Hasanuddin, Makassar 3 Universitas Yapis Papua, Jayapura 1 amril.hans@unhas.ac.id, 2 hardiyantimusi@gmail.com, 3 fatimah.halim67@gmail.com, 4 amfj100@gmail.com ABSTRACT This study wants to analysis public private partnership (PPP) between the government and the private sector. public private partnership is a form of cooperation that has an equal position between two parties, both the government sector and the private sector that bind themselves to establish mutually beneficial relationships in order to improve public services in the form of services and goods. This research was conducted in Makassar City with a case study study at The Rinra Hotel Makassar. This research is a type of descriptive study using qualitative methods, where primary data is obtained from the results of in-depth interviews with informants or informants who are key informants. Besides that, the data also came from documents and observations made at the research location. The data analysis technique used is using qualitative analysis. In my research, I proved that the principle of a partnership from this collaboration did not materialize. In the principle of a partnership between the government and the private sector, there should be no party in charge of the other party and both benefit and take risks together. Even though in this partnership the government did not spend a dime fund to finance the construction of the Rinra hotel building. However, the partnership generated in the development did not bring benefits to the Government of South Sulawesi Province. The government suffered losses from this partnership because the government had not yet received income. Keywords: Partnership, Public Goods, Sulawesi Selatan Government 1. INTRODUCTION In the context of decentralization, local government has a number of agendas and programs that must be achieved, but has limited resources to support each program. The best way is to collaborate with parties outside the government such as with the private sector, NGOs, or with the community to jointly implement a program so that government programs can be successful. Such cooperation according to Savas is one form of privatization called Public Private Partnership [1]. B-SPACE 2019, November 26-28, Malang, Indonesia Copyright © 2020 EAI DOI 10.4108/eai.26-11-2019.2295125