The Role of Law in Public Private Partnership: Indonesia

W Kurniawan, B Endarto, I Prasetyo… - Journal of …, 2021 - search.proquest.com
Journal of management information and decision sciences, 2021search.proquest.com
The Indonesian government has been accelerating infrastructures development. The
objective is to fulfil the need for the business sector and to increase investment. The
government uses the Public Private Partnerships (PPP) model due to the limitedfinancial
resources derived from the State Budget. The Public Private Partnerships (PPP) model,
however, poses risks for the certainty of projects. The termination of projects would create
the impact on subsequent plans related to the projects and also return of the investments …
Abstract
The Indonesian government has been accelerating infrastructures development. The objective is to fulfil the need for the business sector and to increase investment. The government uses the Public Private Partnerships (PPP) model due to the limitedfinancial resources derived from the State Budget. The Public Private Partnerships (PPP) model, however, poses risks for the certainty of projects. The termination of projects would create the impact on subsequent plans related to the projects and also return of the investments and debts by investors and creditors. This article provides overview and argumentation of the legal devices that have been established by Indonesian Government to mitigate the risks of Public Private Partnerships (PPP) projects based on the formal and substantive rules to be applied as standards for the object, subject, and of legal relationships in Public Private Partnerships (PPP).
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