ARTICLE · 03 FEBRUARY 2016

New PPP Regulations: PR No. 38/2015

Hermawan Juniarto

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Given a number of constraints in the previous public private partnership implementations, a new PPP regulation titled Presidential Regulation No. 38/2015 has been issued that supersedes PR No. 67/2005 (as severally amended).

IndonesiaGovernment, Public Sector

Irawati Hermawan

Jardin Bahar

Given a number of constraints in the previous public private partnership (PPP) implementations, a new PPP regulation titled Presidential Regulation (PR) No. 38/2015 has been issued that supersedes PR No. 67/2005 (as severally amended). This new PR was issued on March 20th, 2015.

The current stalling of PPP projects can be partly attributed to the lack of incentives for investors.

The previous PR already provided many progressive changes to support the acceleration of infrastructure development with its government support regime (providing the grounds for the government to give support in the form of viability gap funding, infrastructure guarantee, and land acquisition support). However, certain regulatory uncertainties remained, causing many projects to become stuck in the project preparation and implementation phases.

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