The Practice of Cooperation with Build, Operate & Transfer (BOT) Model in Indonesia

Abstract

Build, Operate and Transfer (BOT) is the Utilization of State/ Regional Property in the form of land by another party by constructing a building and/or infrastructure including its facilities, then it is utilized by the other parties within a certain period of time that has been agreed, further the building and/or infrastructure together with its facilities are returned upon the expiry of the period. BOT Agreement encompassing cooperation, provisions, arrangements of rights and division of obligations between the parties on the utilization and management of land and building together. Cooperation with BOT model is not only undertaken between government and private only can be made with granting rights to the land without giving the right to the land as an option or option of the parties BOT agreement in principle is the same as Lease Agreement while it is not a financing cooperation agreement.

Keywords: Build, Operate and Transfer (BOT), form of land