- In order to secure the funding necessary for national infrastructure projects, the government has laid out two additional funding schemes involving private parties, one of which is the Government Cooperation with Business Entities (Kerja Sama Pemerintah Dengan Badan Usaha – “KPBU”) scheme that is currently based on Regulation of the President No. 35 of 2015 on Cooperation Between Government and Business Entities for the Provision of Infrastructure (“Regulation 35/2015”).
- However, Professor Benny Riyatno, the head of the National Legal Development Agency (BPHN), recently suggested that Regulation 35/2020 was not a sufficient legal basis for the implementation of the KPBU scheme and has proposed that an infrastructure development program should be regulated at the level of a law. Mr. Riyanto added that any regulatory framework that remained at the level of a presidential regulation would ultimately hinder the implementation of infrastructure development across Indonesia, since it stipulates a greater number of sectors under the direct control of the government.
- In contrast, Novie Andriani, an official of the Ministry of National Development Planning, has argued that Regulation 35/2015 is sufficient as the legal basis for the implementation of the KPBU scheme, provided that it is fully harmonized with other regulations which apply within the construction-service sector.
- For more information on this story, see Hukumonline: “BPHN Usul Perlunya UU Pembangunan Infrastruktur”.
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