- In anticipation of the further development of Indonesia’s infrastructure, Darmin Nasution, the Coordinating Minister of Economic Affairs, claimed that the President of Indonesia was preparing to sign off on a Regulation of the President on the Limited Concession Scheme (“LCS”) in the near future. It is expected that under this new framework, the operations of duly established infrastructure will be transferred to business entities through the implementation of concession schemes.
- Mr. Nasution has also emphasized that the LCS may be in operation for 11 years, which is a relatively long period. However, businesses wishing to participate in the LCS are required to meet the following criteria: 1) Must have experience of operating state-owned infrastructure; and 2) Must be willing to settle concession payments upfront.
- As a side note, it has been claimed that the current Nationally Strategic Projects (“PSN”) scheme has been facing four primary issues throughout 2019, specifically: 1) Project preparation; 2) Land procurement; 3) Financing; and 4) Licensing. As a result, the involvement of the private sector in further infrastructure development is seen as vital.
- For more on this story, see Hukumonline: “Perpres Limited Concession Scheme Siap Diteken Presiden”
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