ProdukHukum Perdagangan
COOPERATION BETWEEN THE GOVERNMENT AND PRIVATE
COMPANIES IN THE DEVELOPMENT AND OR MANAGEMENT OF
INFRASTRUCTURES
(Presidential Decree No. 7/1998, dated January 12, 1998)
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
Considering :
a. that the development of infrasrtuctures is very important to support and realize
smooth and continuous implementation of national development;
b. that in view of the limitation of state finance capability, and as part of efforts to
continuously increase the implementation of the national development, steps to
boost the involvement of private companies in the development and or
management of infrastructures, in forms of close cooperation between the
government and private companies, are required ;
c. that to provide the said participation with a clear foundation and to give
direction so that the said cooperation continues to guarantee the realization of
the public welfare, it is deemed necessary to stipulate provisions on the
involvement of private companies in a Presidential Decree.
In view of :
1. Article 4 paragraph (1) and Article 33 paragraph (2) of the Constitution of
1945;
2. Presidential Decree No. 6/1995 on the Team for Evaluating the Procurement;
DECIDES :
To stipulate :
THE PRESIDENTIAL DECREE ON COOPERATION BETWEEN THE
GOVERNMENT AND PRIVATE COMPANIES IN THE DEVELOPMENT
AND OR MANAGEMENT OF INFRASTRUCTURES
Article 1
In implementing the development and or management of infrastructures, the
government shall be allowed to involve private companies in forms of Indonesian
statutory bodies.
Article 2
(1) The infrastructures as meant in Article 1 shall cover sectors of :
1. electric power generation, transmission and distribution;
2. natural gas transmission and distribution;
3. the processing and transport of oil and natural gas as well as the transport of
their processed products;
4. the channeling, storage, supply, production, distribution and processing of
clean water;
5. waste water and rubbish management;
6. the procurement and or operation of supporting facilities for providing
services for the sea, air or railway transport of goods or passengers;
7. the tollroads and bridges, piers, ports of sea or river or lake, airfields and
airports;
8. the procurement and operation of telecommunication facilities.
(2) The addition to or omission of fields and types of activities in the sectors as
meant in paragraph (1) shall be stipulated by a Presidential Decree.
Article 3
The involvement of the private companies in the development and or management
of infrastructures shall be implemented in forms of cooperation based on the
following principles :
1. to observe the foundations, objectives, targets and concepts of the
implementation of national development;
2. mutual need, mutual support and mutual benefit;
3. to increase the efficiency and quality of the development and or management of
infrastructures;
4. to further boost economic growth;
5. to increase the quality of service and provide greater benefit for the public;
6. the process of participation is executed through open and transparent tenders,
so as to encourage the creation of a better investment environment;
7. not to contravene the laws in force and to be fully subject to the Indonesian
law.
Article 4
(1) By taking account of considerations of Ministers/Heads of Institutions
responsible for infrastructural development, the State Minister of National
Development Planning/Chairman of the National Development Planning Board
shall stipulate plans along with priority rating of the infrastructures
development projects whose development and or management can be carried
out by involving private companies in the form of joint cooperation with the
government.
(2) The implementation of the other infrastructural development projects excluded
from the category as meant in paragraph (1) shall fully observe the provisions
in Presidential Decree No. 16/1994 on the implementation of the budget of
State Revenue and Expenditure along with its amendments.
Article 5
The plans of the projects of the development and or management of infrastructures
as meant in Article 4 parapgraph (1) shall be filed by the Ministers/Heads of
Institutions responsible for the projects to the State Minister of National
Development Planning/Chairman of National Development Planning Board by
enclosing :
1. pre-feasibility studies of the relevant projects;
2. evaluations of the feasibility of the projects an the involvement of private
companies under the joint coopration covering aspects of socio-cultural,
financial-economic, political and the state security and defense aspects:
3. plans and sources of the projects financing;
4. explanations on the scope of the projects, whether they are cover development
and management or are merely limited to the management. along with reasons;
5. plans of tenders of the cooperation covering the timetable, process and methods
of evaluations;
6. other data stipulated further by the State Minister of National Development
Planning/Chairman of National Development Planning Board.
Article 6
(1) The State Minister of National Development Planning/Chairman of National
Development Planning Board shall stipulate infrastructural development
projects in the list of infrastructural development projects which can be
undertaken in cooperation with private companies;
(2) The lis of infrastructural development projects as meant in paragraph (1) shall
be declared open to the public and announced publicly.
Article 7
(1) The tenders for private companies to participate in the development and or
management of the infrastructures shall be conducted openly by the
Ministers/Heads of Instituions responsible for the relevant infrastructural
development projects;
(2) By taking into account the characteristic, nature and degrees of the difficulties
of the projects, in the framework of the tenders as meant in paragraph (1), the
Minister/Heads of Institutions responsible for the projects shall be allowed to
conduct pre-qualification of private companies, by considering, among others,
the following aspects :
a. the experience in undertaking the similar projects, along with the references
required;
b. the achievements and performance of the companies in handling the
projects as meant in letter a
c. the capability of the private companies either in finance, expertise,
equipment and others or in handling the projects under natural conditions or
social, cultural, economic and other conditions surrounding them.
Article 8
(1) The forms and implementation of the tenders along with the methods of
evaluation shall be in accordance with the provisions attached to this
Presidential Decree.
(2) The evaluation of the tenders shall be executed by the Ministers/Heads of
Institutions responsible for the projects.
Article 9
(1) The Ministers/Heads of Institutions responsible for the projects shall file
results of the evaluation as wel as all documents of the tenders completely
along with opinions and considerations to the Coordinating Minister of
Economy, Finance and Development Supervision serving as the Chairman of
the Team for evaluation of the procurement as meant in Presidential Decree
No. 6/1995 on the Team for evaluation of the procurement;
(2) The Team for evaluation of the procurement shall conduct the evaluation and
make decisions according to Presidential Decree No. 6/1995.
Article 10
(1) Contracts of the cooperation for the development and or management of the
infrastructures shall be made by the Ministers/Heads of Institutions responsible
for the projects by fully taking into account the principles as regulated in this
Presidential Decree along with the attachment to it.
(2) The contracts of the cooperation shall at least cover the provisions on :
a. the scope of projects;
b. the period of time;
c. tariffs of services, in the case of the cooperation relating to the management
of infrastructures;
d. rights and obligations, including the risks that must be borne by parties;
e. sanctions in the case of parties failing to fulfill the requirements of the
contracts;
f. the settlement of disputes;
g. the cancellation and termination of the contracts;
h. the reversion of the infrastructures and or thir management to the
government or the State-Owned Companies/Provincial AdministrationOwned Companies
(3) In connection with the use of the Intellectual Property Rights (HAKI), in the
contracts, there must be clearly stated the guarantee from the relevant private
companies stating that :
a. the HAKI used are entirely free from all kinds of legal violation;
b. the government will be exempted from all suits and indictments charged by
whatever parties relating to the use of the HAKI in the development and or
management of infrastructures;
c. while the settlement of the chases being underway because of suits or
indictments as meant in letter b :
(1) the development and or management of infrastructures shall be allowed
to be carried on;
(2) licences shall be strived for so the use of the HAKI can be continued.
Article 11
(1) In the case of the plans of the development and or management of the said
infrastructures belonging to the projects of regional administrations :
a. the plans of the cooperation, tenders and evaluation shall follow the
provisions in this Presidential Decree;
b. the contracts of the cooperation as meant in Article 10 shall be made by the
relevant
Governors/Heads
of
the
First-Level
Regions
or
Regents/Majors/Heads of the Second-Level Regions.
(2) In the case of the plans of the development and or management of the said
infrastructures belonging to the projects of the State-Owned
Companies/Provincial Administration-Owned Companies:
a. the plans of the cooperation, tenders and evaluation shall refer to the
provisions in this Presidential Decree;
b. the contracts of the joint cooperation as meant in Article 10 shall be made
by the relevant State-Owned Companies/Provincial Administration Owned
Companies accoding to the provisions in their articles of association.
Article 12
In the case of the implementation of the cooperation of management relating to the
tariffs of services, in accordance with the principles as meant in Article 3, the
determination of the tariffs shall be stipulated by the govenrment according to the
provisions in the laws in force.
Article 13
The State Minister of National Development Planning/Chairman of the National
Development Planning Board shall monitor and evaluate the implementation of the
cooperation between the government and private companies in field of the
development and or management of infrastructures to ensure that it runs in
accordance with the provisions in this Presidential Decree.
Article 14
Further provisions required to implement this Presidential Decree shall be
stipulated by the State Minister of National Development Planning
Board/Chairman of National Development Planning Board and the Coordinating
Minister of Economy, Finance and Development Supervision serving as the
Chairman of the Team for evaluating the procurement, according to their
respective tasks.
Article 15
This Presidential Decree shall come into force as from the date of stipulation.
Stipulated in Jakarta
on January 12, 1998
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
sgd
SOEHARTO
COMPANIES IN THE DEVELOPMENT AND OR MANAGEMENT OF
INFRASTRUCTURES
(Presidential Decree No. 7/1998, dated January 12, 1998)
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
Considering :
a. that the development of infrasrtuctures is very important to support and realize
smooth and continuous implementation of national development;
b. that in view of the limitation of state finance capability, and as part of efforts to
continuously increase the implementation of the national development, steps to
boost the involvement of private companies in the development and or
management of infrastructures, in forms of close cooperation between the
government and private companies, are required ;
c. that to provide the said participation with a clear foundation and to give
direction so that the said cooperation continues to guarantee the realization of
the public welfare, it is deemed necessary to stipulate provisions on the
involvement of private companies in a Presidential Decree.
In view of :
1. Article 4 paragraph (1) and Article 33 paragraph (2) of the Constitution of
1945;
2. Presidential Decree No. 6/1995 on the Team for Evaluating the Procurement;
DECIDES :
To stipulate :
THE PRESIDENTIAL DECREE ON COOPERATION BETWEEN THE
GOVERNMENT AND PRIVATE COMPANIES IN THE DEVELOPMENT
AND OR MANAGEMENT OF INFRASTRUCTURES
Article 1
In implementing the development and or management of infrastructures, the
government shall be allowed to involve private companies in forms of Indonesian
statutory bodies.
Article 2
(1) The infrastructures as meant in Article 1 shall cover sectors of :
1. electric power generation, transmission and distribution;
2. natural gas transmission and distribution;
3. the processing and transport of oil and natural gas as well as the transport of
their processed products;
4. the channeling, storage, supply, production, distribution and processing of
clean water;
5. waste water and rubbish management;
6. the procurement and or operation of supporting facilities for providing
services for the sea, air or railway transport of goods or passengers;
7. the tollroads and bridges, piers, ports of sea or river or lake, airfields and
airports;
8. the procurement and operation of telecommunication facilities.
(2) The addition to or omission of fields and types of activities in the sectors as
meant in paragraph (1) shall be stipulated by a Presidential Decree.
Article 3
The involvement of the private companies in the development and or management
of infrastructures shall be implemented in forms of cooperation based on the
following principles :
1. to observe the foundations, objectives, targets and concepts of the
implementation of national development;
2. mutual need, mutual support and mutual benefit;
3. to increase the efficiency and quality of the development and or management of
infrastructures;
4. to further boost economic growth;
5. to increase the quality of service and provide greater benefit for the public;
6. the process of participation is executed through open and transparent tenders,
so as to encourage the creation of a better investment environment;
7. not to contravene the laws in force and to be fully subject to the Indonesian
law.
Article 4
(1) By taking account of considerations of Ministers/Heads of Institutions
responsible for infrastructural development, the State Minister of National
Development Planning/Chairman of the National Development Planning Board
shall stipulate plans along with priority rating of the infrastructures
development projects whose development and or management can be carried
out by involving private companies in the form of joint cooperation with the
government.
(2) The implementation of the other infrastructural development projects excluded
from the category as meant in paragraph (1) shall fully observe the provisions
in Presidential Decree No. 16/1994 on the implementation of the budget of
State Revenue and Expenditure along with its amendments.
Article 5
The plans of the projects of the development and or management of infrastructures
as meant in Article 4 parapgraph (1) shall be filed by the Ministers/Heads of
Institutions responsible for the projects to the State Minister of National
Development Planning/Chairman of National Development Planning Board by
enclosing :
1. pre-feasibility studies of the relevant projects;
2. evaluations of the feasibility of the projects an the involvement of private
companies under the joint coopration covering aspects of socio-cultural,
financial-economic, political and the state security and defense aspects:
3. plans and sources of the projects financing;
4. explanations on the scope of the projects, whether they are cover development
and management or are merely limited to the management. along with reasons;
5. plans of tenders of the cooperation covering the timetable, process and methods
of evaluations;
6. other data stipulated further by the State Minister of National Development
Planning/Chairman of National Development Planning Board.
Article 6
(1) The State Minister of National Development Planning/Chairman of National
Development Planning Board shall stipulate infrastructural development
projects in the list of infrastructural development projects which can be
undertaken in cooperation with private companies;
(2) The lis of infrastructural development projects as meant in paragraph (1) shall
be declared open to the public and announced publicly.
Article 7
(1) The tenders for private companies to participate in the development and or
management of the infrastructures shall be conducted openly by the
Ministers/Heads of Instituions responsible for the relevant infrastructural
development projects;
(2) By taking into account the characteristic, nature and degrees of the difficulties
of the projects, in the framework of the tenders as meant in paragraph (1), the
Minister/Heads of Institutions responsible for the projects shall be allowed to
conduct pre-qualification of private companies, by considering, among others,
the following aspects :
a. the experience in undertaking the similar projects, along with the references
required;
b. the achievements and performance of the companies in handling the
projects as meant in letter a
c. the capability of the private companies either in finance, expertise,
equipment and others or in handling the projects under natural conditions or
social, cultural, economic and other conditions surrounding them.
Article 8
(1) The forms and implementation of the tenders along with the methods of
evaluation shall be in accordance with the provisions attached to this
Presidential Decree.
(2) The evaluation of the tenders shall be executed by the Ministers/Heads of
Institutions responsible for the projects.
Article 9
(1) The Ministers/Heads of Institutions responsible for the projects shall file
results of the evaluation as wel as all documents of the tenders completely
along with opinions and considerations to the Coordinating Minister of
Economy, Finance and Development Supervision serving as the Chairman of
the Team for evaluation of the procurement as meant in Presidential Decree
No. 6/1995 on the Team for evaluation of the procurement;
(2) The Team for evaluation of the procurement shall conduct the evaluation and
make decisions according to Presidential Decree No. 6/1995.
Article 10
(1) Contracts of the cooperation for the development and or management of the
infrastructures shall be made by the Ministers/Heads of Institutions responsible
for the projects by fully taking into account the principles as regulated in this
Presidential Decree along with the attachment to it.
(2) The contracts of the cooperation shall at least cover the provisions on :
a. the scope of projects;
b. the period of time;
c. tariffs of services, in the case of the cooperation relating to the management
of infrastructures;
d. rights and obligations, including the risks that must be borne by parties;
e. sanctions in the case of parties failing to fulfill the requirements of the
contracts;
f. the settlement of disputes;
g. the cancellation and termination of the contracts;
h. the reversion of the infrastructures and or thir management to the
government or the State-Owned Companies/Provincial AdministrationOwned Companies
(3) In connection with the use of the Intellectual Property Rights (HAKI), in the
contracts, there must be clearly stated the guarantee from the relevant private
companies stating that :
a. the HAKI used are entirely free from all kinds of legal violation;
b. the government will be exempted from all suits and indictments charged by
whatever parties relating to the use of the HAKI in the development and or
management of infrastructures;
c. while the settlement of the chases being underway because of suits or
indictments as meant in letter b :
(1) the development and or management of infrastructures shall be allowed
to be carried on;
(2) licences shall be strived for so the use of the HAKI can be continued.
Article 11
(1) In the case of the plans of the development and or management of the said
infrastructures belonging to the projects of regional administrations :
a. the plans of the cooperation, tenders and evaluation shall follow the
provisions in this Presidential Decree;
b. the contracts of the cooperation as meant in Article 10 shall be made by the
relevant
Governors/Heads
of
the
First-Level
Regions
or
Regents/Majors/Heads of the Second-Level Regions.
(2) In the case of the plans of the development and or management of the said
infrastructures belonging to the projects of the State-Owned
Companies/Provincial Administration-Owned Companies:
a. the plans of the cooperation, tenders and evaluation shall refer to the
provisions in this Presidential Decree;
b. the contracts of the joint cooperation as meant in Article 10 shall be made
by the relevant State-Owned Companies/Provincial Administration Owned
Companies accoding to the provisions in their articles of association.
Article 12
In the case of the implementation of the cooperation of management relating to the
tariffs of services, in accordance with the principles as meant in Article 3, the
determination of the tariffs shall be stipulated by the govenrment according to the
provisions in the laws in force.
Article 13
The State Minister of National Development Planning/Chairman of the National
Development Planning Board shall monitor and evaluate the implementation of the
cooperation between the government and private companies in field of the
development and or management of infrastructures to ensure that it runs in
accordance with the provisions in this Presidential Decree.
Article 14
Further provisions required to implement this Presidential Decree shall be
stipulated by the State Minister of National Development Planning
Board/Chairman of National Development Planning Board and the Coordinating
Minister of Economy, Finance and Development Supervision serving as the
Chairman of the Team for evaluating the procurement, according to their
respective tasks.
Article 15
This Presidential Decree shall come into force as from the date of stipulation.
Stipulated in Jakarta
on January 12, 1998
THE PRESIDENT OF THE REPUBLIC OF INDONESIA
sgd
SOEHARTO