Infrastructure Development - Government and Business Cooperation Agreements

The provision of adequate infrastructure and the continuing development of additional infrastructure to support the national development program came to the fore most recently in the Infrastructure Summit of January 2005 in the wake of the catastrophic damage caused by the earthquake and tsunami that devastated much of Aceh and North Sumatra. Although the Presidential Regulation makes no reference to either of these events the subject matter is clearly related and the ideals of the summit are reflected in the intent of this Presidential Regulation.

Presidential Regulation No. 67 of 2005 (Perpres 67/2005) repeals an earlier Presidential Decree, No. 7 of 1998. Perpres 67/2005 sets out the process for entering into a cooperation agreement between the Government and business. Business is broadly defined in the legislation to include all private companies in the form of a PT or a limited liability company, State and Regional Owned Enterprises (BUMN and BUMD respectively).