Government Assignment of Contracts to State-Owned Enterprises to Provide Infrastructure: Indonesia’s Experience
This paper aims to evaluate the peculiarities of a mechanism utilised by the Indonesian government to conduct infrastructure development, that is, the government’s assignment of contracts to state-owned enterprises (SOEs). This mechanism differs from public procurement or public-private partnership....
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Online Access: | https://repo.uum.edu.my/id/eprint/31233/1/UUMJLS%2015%2002%202024%20675-705.pdf https://doi.org/10.32890/uumjls2024.15.2.11 https://repo.uum.edu.my/id/eprint/31233/ https://e-journal.uum.edu.my/index.php/uumjls/article/view/17746 https://doi.org/10.32890/uumjls2024.15.2.11 |
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my.uum.repo.312332024-08-11T05:03:08Z https://repo.uum.edu.my/id/eprint/31233/ Government Assignment of Contracts to State-Owned Enterprises to Provide Infrastructure: Indonesia’s Experience Wibowo, Richo Andi Putri, Karina Dwi Nugrahanti K Law (General) This paper aims to evaluate the peculiarities of a mechanism utilised by the Indonesian government to conduct infrastructure development, that is, the government’s assignment of contracts to state-owned enterprises (SOEs). This mechanism differs from public procurement or public-private partnership. This paper raises three questions: (1) assignment of contracts to SOEs? (2) What should be done to prevent the disadvantages? and (3) What lessons can be learned by other countries from the Indonesian experience? This paper employs qualitative legal research. It starts by analysing public satisfaction and dissatisfaction as reflected in the news, literature and interviews. The legal causes of dissatisfaction which are basically the problematic regulations, are then analysed. Finally, the legal principles and legal concepts enshrined within the regulations are examined to seek legal solutions. The advantages of the government’s assignment of contracts to SOEs are to simplify the tender process and to enable the government to quickly provide infrastructure. Nonetheless, the private sector feels aggrieved because the regulations that dictate when a project may be contracted to an SOE are unclear, and public funding is predominantly circulated among the SOE groups. To address these problems, the government should adhere to the globally recognised principles of equality and accountability and the concepts of competitive neutrality and the right to development. The bittersweet Indonesian experiences maybe not only the refinement of the Indonesian law and policy, but also their use as food for thought for any country considering infrastructure development UUM Press 2024 Article PeerReviewed application/pdf en cc4_by https://repo.uum.edu.my/id/eprint/31233/1/UUMJLS%2015%2002%202024%20675-705.pdf Wibowo, Richo Andi and Putri, Karina Dwi Nugrahanti (2024) Government Assignment of Contracts to State-Owned Enterprises to Provide Infrastructure: Indonesia’s Experience. UUM Journal of Legal Studies (UUMJLS), 15 (2). pp. 675-705. ISSN 2229-984X https://e-journal.uum.edu.my/index.php/uumjls/article/view/17746 https://doi.org/10.32890/uumjls2024.15.2.11 https://doi.org/10.32890/uumjls2024.15.2.11 |
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This paper aims to evaluate the peculiarities of a mechanism utilised by the Indonesian government to conduct infrastructure development, that is, the government’s assignment of contracts to state-owned enterprises (SOEs). This mechanism differs from public procurement or public-private partnership. This paper raises three questions: (1) assignment of contracts to SOEs? (2) What should be done to prevent the disadvantages? and (3) What lessons can be learned by other countries from the Indonesian experience? This paper employs qualitative legal research. It starts by analysing public satisfaction and dissatisfaction as reflected in the news, literature and interviews. The legal causes of dissatisfaction which are basically the problematic regulations, are then analysed. Finally, the legal principles and legal concepts enshrined within the regulations are examined to seek legal solutions. The advantages of the government’s assignment of contracts to SOEs are to simplify the tender process and to enable
the government to quickly provide infrastructure. Nonetheless, the private sector feels aggrieved because the regulations that dictate when a project may be contracted to an SOE are unclear, and
public funding is predominantly circulated among the SOE groups. To address these problems, the government should adhere to the globally recognised principles of equality and accountability and the
concepts of competitive neutrality and the right to development. The bittersweet Indonesian experiences maybe not only the refinement of the Indonesian law and policy, but also their use as food for thought for any country considering infrastructure development |
format |
Article |
author |
Wibowo, Richo Andi Putri, Karina Dwi Nugrahanti |
author_facet |
Wibowo, Richo Andi Putri, Karina Dwi Nugrahanti |
author_sort |
Wibowo, Richo Andi |
title |
Government Assignment of Contracts to State-Owned Enterprises to Provide Infrastructure: Indonesia’s Experience |
title_short |
Government Assignment of Contracts to State-Owned Enterprises to Provide Infrastructure: Indonesia’s Experience |
title_full |
Government Assignment of Contracts to State-Owned Enterprises to Provide Infrastructure: Indonesia’s Experience |
title_fullStr |
Government Assignment of Contracts to State-Owned Enterprises to Provide Infrastructure: Indonesia’s Experience |
title_full_unstemmed |
Government Assignment of Contracts to State-Owned Enterprises to Provide Infrastructure: Indonesia’s Experience |
title_sort |
government assignment of contracts to state-owned enterprises to provide infrastructure: indonesia’s experience |
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UUM Press |
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2024 |
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https://repo.uum.edu.my/id/eprint/31233/1/UUMJLS%2015%2002%202024%20675-705.pdf https://doi.org/10.32890/uumjls2024.15.2.11 https://repo.uum.edu.my/id/eprint/31233/ https://e-journal.uum.edu.my/index.php/uumjls/article/view/17746 https://doi.org/10.32890/uumjls2024.15.2.11 |
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