The Role of Law in Public Private Partnerships: Indonesia

Abstract

The Indonesian government have been accelerating infrastructures development. The objective is to fulfil the need for business sectors and to increase investments. The government use the Public Private Partnerships (PPPSs) model due to the limited financial resources derived from the State Budget (APBN). The PPPSs 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 PPPSs projects based on the formal and substantive rules to be applied as standards for the object, subject, and of legal relationships in PPPSs.

Keywords: infrastructure; public private partnerships; risks; substantive law; formal law.

DOI: 10.7176/JLPG/115-12

Publication date: November 30^th 2021