Public-Private Partnership in the Development of Indonesia’s New Capital City (IKN)

AHRP Legal Alert Page 1 of 23
Legal Alert January 2023
Public-Private Partnership in the Development of
Indonesia’s New Capital City (IKN)
I. Introduction and General Overview
On 2019, the Government of Indonesia (hereinafter referred to as “Government”)
announced its plans to move Indonesia’s capital city from Jakarta to a location in
East Kalimantan Province.1 As such, on 15 February 2022, the Government issued
Law 3/2022, which aims to regulate not only the transition regarding the change of
Indonesia’s capital city from Jakarta, but also the management of the New Capital
City of Indonesia (Ibu Kota Negara Nusantara or “IKN”). The relocation of the
capital is carried out as one of the strategies to realize Indonesia's economic target
of 2045, which is to achieve a more inclusive and equitable economic growth
through the acceleration of development in eastern Indonesia.2
For the aforementioned purposes, Law 3/2022 provides a glimpse of the funding
mechanism which shall be utilized for the preparation, development, and
management of IKN. The regulation provides that infrastructure, which shall be
developed within IKN, encompasses infrastructure within the following fields:3
a. housing and settlement;
b. waste infrastructure;
c. wastewater management;
d. water;
e. public and social facilities;
f. mobility and connectivity;
g. energy; and
h. technology, information, and communication.
One of the funding schemes which may be used in IKN development is the Public-
Private Partnership (“PPP”) scheme, which shall involve not only the Government
but also private entities.4
The general guideline on the implementation of PPP for infrastructure procurement
in IKN is outlined within GR 17/2022 which provides an overview on the regulatory
regime for infrastructure procurement in IKN and its stages. For further elucidation
on matters concerning planning,5 preparation,6 transaction process,7 financial
close,8 and implementation of IKN PPP agreement9 are not detailed within GR
17/2022, and instead shall be enshrined within its implementing regulations. This
1
Cabinet Secretariat of Indonesia, “Pemindahan Ibu Kota, 26 Agustus 2019, di Istana
Negara, Provinsi DKI Jakarta”, accessed via https://setkab.go.id/pemindahan-ibu-kota-26-
agustus-2019-di-istana-negara-provinsi-dki-jakarta/ on 27 January 2022.
2
Appendix II Chapter I Section A Law 3/2022.
3
Appendix II Chapter III Section F Law 3/2022.
4
Appendix II Chapter IV Section B Law 3/2022.
5
Art. 21 (3) GR 17/2022.
6
Art. 24 (2) (a) GR 17/2022.
7
Art. 26 (3) (a) GR 17/2022.
8
Art. 26 (3) (c) GR 17/2022.
9
Art. 27 (3) GR 17/2022.
The government has
issued several regulations
in order to regulate
infrastructure procurement
in IKN. Among these
regulations are
instruments aimed at
managing infrastructure
procurement through
public-private
partnerships, such as GR
17/2022, Ministry of
Transportation 6/2022,
Ministry of Forestry
220/220, and NPPAR
1/2023.

report shall provide summaries on several of the implementing regulations of GR
17/2022, in particular:
a. Minister of National Development Planning/Head of National Development
Planning Agency Regulation Number 6 of 2022 on the Procedure for Public-
Private Partnership in Nusantara Capital City (“MoNDPR 6/2022”);
b. Minister of Finance Regulation Number 220/PMK.08/2022 of 2022 on the
Government Support for Government Cooperation with Business Entities
and Creative Financing in The Context of Accelerating Infrastructure
Provision in Nusantara Capital City (“MoFR 220/2022”); and
c. National Procurement Policy Agency Regulation Number 1 of 2023 on the
Procedure of Business Entity Procurement through Public Private
Partnership with Business Entity in Nusantara Capital City (“NPPAR
1/2023”).
II. Overview on the New Regulatory Framework of IKN PPP Scheme
A. Institutional Aspects of IKN PPP
MoNDPR 6/2022 recognizes several stakeholders which shall be involved in the
IKN PPP scheme. While some stakeholders are the usual parties within a common
PPP scheme (e.g., Government Contracting Agency), the IKN PPP scheme has
introduced new stakeholders.
1. Government Contracting Agency (“GCA”)
Pursuant to Article 1 (15) MoNDPR 6/2022, the GCA is the relevant minister,
head of institution, director of state-owned enterprise and/or Head of IKN
Authority. The determination of GCA shall be based on (i) authority over the
relevant infrastructure; (ii) Master Plan of IKN (Rencana Induk IKN); and (iii)
the Details of Master Plan of IKN (Perincian Rencana Induk IKN).10
Similar to the general PPP scheme, duties mandated to the GCA may be
delegated, which can be deployed to their head of organization units/work
units11 as relevant.12 However, such delegation could also be given to the
head of legal-entity higher-education institution (Perguruan Tinggi Negeri
Badan Hukum or “PTN-BH”) or the head of public broadcasting institutions
(Lembaga Penyiaran Publik or “LPP”).13 This is a new provision introduced
through MoNDPR 6/2022.
In addition, also similar to a general PPP scheme, IKN PPP allows a project
to have multiple GCAs, with the following possibilities:14
a. consolidation between 2 (two) or more GCAs for 1 (one) type of
infrastructure;
b. consolidation for 2 (two) or more types of infrastructure; or
c. consolidation between 2 (two) or more GCAs for 2 (two) or more types
of infrastructure.
10
Art. 4 (3) MoNDPR 6/2022.
11
Art. 4 (5) and (6) MoNDPR 6/2022.
12
Art. 4 (4) MoNDPR 6/2022.
13
Art. 5 (1) MoNDPR 6/2022.
14
Art. 6 (1) MoNDPR 6/2022.

The GCAs shall jointly formulate and sign a memorandum of understanding
which would determine, among others, the coordinator of the GCAs and
mechanism of decision making between the GCAs.15
2. Committee of IKN PPP
The GCA shall form or appoint Committee of IKN PPP16 at the planning
phase (for solicited PPP)17 or preparation phase (for unsolicited PPP).18 The
Committee of IKN PPP has duties and responsibilities to assist GCA in
executing IKN PPP, as well as drafting necessary policies and/or
coordination.19 In conducting its duties, the Committee may be assisted by
consultant and/or experts.20
The Committee of IKN PPP shall be established or appointed with the
conditions that the committee members shall possess expertise in either
technical infrastructure according to the related plan, law, economy and/or
finance, procurement, or other expertise which may be considered
necessary.21 The members of Committee shall only be from the institution
appointed as GCA, unless considered necessary.22
3. Probity Advisor
GCA may be assisted by probity advisor, whose duties are providing
recommendation and guidance to GCA regarding the conformity of IKN PPP
project processes since the procurement phase until the signing of IKN PPP
agreement.23
4. Preparatory Body
In conducting preparatory and transaction phases of IKN PPP, GCA may be
facilitated by the Ministry of Finance or Preparatory Body.24 Preparatory
Body may assist GCA in the phases of: (i) planning until transaction, (ii)
preparation until transaction, or (iii) transaction.25 An entity or an
international organization/institution may become a Preparatory Body by
undergoing a procurement process.26
If the GCA is facilitated by Preparatory Body, IBE may be required to
compensate the facilitation fee provided by Preparatory Body,27 in form of:
(i) costs accrued by Preparatory Body and (ii) success fee for the success
of a project until the fulfilment of financing.28
15
Art. 6 (3) and (4) MoNDPR 6/2022.
16
Art. 7 (1) MoNDPR 6/2022.
17
Art. 7 (2) MoNDPR 6/2022.
18
Art. 7 (3) MoNDPR 6/2022.
19
Art. 7 (5) MoNDPR 6/2022.
20
Art. 7 (6) MoNDPR 6/2022.
21
Art. 7 (4) MoNDPR 6/2022.
22
Ibid.
23
Art. 8 (2) MoNDPR 6/2022.
24
Art. 9 (1) MoNDPR 6/2022.
25
Art. 9 (2) MoNDPR 6/2022.
26
Art. 10 (1) MoNDPR 6/2022.
27
Art. 9 (7) MoNDPR 6/2022.
28
Art. 9 (5) MoNDPR 6/2022.

5. Coordination Forum
In conducting IKN PPP, the GCA may conduct coordination with the
consolidated coordination forum,29 which comprises ministries and
institutions which conduct their duties and functions in making implementing
policies of PPP.30 Such coordination is aimed for conducting facilitation,
acceleration, oversight, and evaluation of IKN PPP.31
B. IKN PPP Development Progress
The relocation of IKN is carried out as one of the strategies to realize Indonesia's
2045 economic target, namely economic growth that is more inclusive and
equitable through accelerating the development of Eastern Indonesia.32 Moving
the capital city from Java Island to Kalimantan Island is one of the efforts to
encourage regional equity so as to reduce the gap between the Eastern Region of
Indonesia or Kawasan Timur Indonesia (“KTI”) and the Western Region of
Indonesia or Kawasan Barat Indonesia (“KBI”), particularly between the Java
Region and outside the Java Region.33
Furthermore, the relocation of IKN to Kalimantan was based on several
considerations of regional advantages, inter alia:34
1. strategic location in the middle of Indonesian territory and passed by the
Indonesian Archipelagic Sea Lanes or Air Laut Kepulauan Indonesia
(“ALKI”) II;
2. has a relatively complete infrastructure;
3. the location is close to 2 (two) supporting cities that have developed, namely
Balikpapan City and Samarinda City;
4. availability of adequate government-controlled land for the development of
IKN; and
5. to minimize the risk of natural disasters.
Meanwhile, in carrying out the development of IKN in certain stages, the
Government needs to prepare a Rencana Induk of IKN (hereinafter shall be
referred to as “IKN Master Plan”).35 Based on Article 7 (1) Law 3/2022, the IKN
Master Plan is an integrated planning document that serves as a guideline for the
IKN Authority and/or the Central Government in carrying out the preparation,
development, and relocation of IKN, as well as the administration of Regional
Government specific for IKN. One of the aims of the IKN Master Plan is to become
a guideline for IKN Authority, Central Government, state institutions, and/or partner
local governments in carrying out IKN preparation, development, and transfer
activities, as well as administering IKN governance.36
According to Appendix 1 PR 63/2022, the IKN Region is placed to the north of
Balikpapan City and to the south of Samarinda City with a land area of
approximately 256,142 hectares and an area of sea waters of approximately
29
Art. 12 (1) MoNDPR 6/2022.
30
Art. 12 (2) MoNDPR 6/2022.
31
Art. 12 (3) MoNDPR 6/2022.
32
MoNDP/Bappenas, “Socialization Materials of IKN Master Plan on Law 3/2022”,
accessed via https://bappeda.kaltimprov.go.id/storage/data-
paparans/March2022/c9lVSaQqMGEtSQKMiVvt.pdf, on 27 January 2023.
33
Ibid.
34
Ibid.
35
Art. 7 (1) & (2) Law 3/2022.
36
Art. 2 (1) (a) PR 63/2022.

68,189 hectares.37 Furthermore, the IKN planning is divided into 2 (two) planning
areas, namely:38
1. The IKN Region or Kawasan Ibu Kota Nusantara (“KIKN”) with an area of
approximately 56,180 hectares including the Central Government Core Area
or Kawasan Inti Pusat Pemerintahan (“KIPP”); and
2. The IKN Development Area or Kawasan Pengembangan Ibu Kota
Nusantara (“KPIKN”) with an area of approximately 199,962 hectares.
The following is the stages of IKN development which are divided into 5 (five)
phases:39
1. Phase 1: Year 2022-2024;
2. Phase 2: Year 2025-2029;
3. Phase 3: Year 2030-2034;
4. Phase 4: Year 2035-2039; and
5. Phase 5: Year 2040- 2045.
The focus in the development stages includes: (i) characteristics of the IKN
population; (ii) social; (iii) infrastructure and environment; (iv) regional
development; (v) industrial development and economic growth centers in K-IKN
and other areas; and (vi) defense and security.40 Additionally, this development
plan also elaborates the embodiment of spatial use which indicates the
development of areas starting from KIPP, East IKN area, West IKN area, to North
IKN area.41
In relation to the recent development progress in IKN, as of 29 August 2022, the
construction of the IKN construction workers’ housing has been carried out and is
targeted for completion by the end of February 2023. The IKN construction
worker's residence was carried out by KSO PT Wijaya Karya Gedung and PT Adhi
Karya (Persero) Tbk with a contract value of IDR 567.000.000.000, - (five hundred
and sixty-seven billion Rupiah).42 The plan is to provide various social and public
facilities at the IKN construction workers' residential complex, such as a mosque,
function rooms, clinics, and management representative offices.43
Apart from the construction of the IKN construction workers’ housing as mentioned
above, a number of infrastructures also being built currently at IKN, which includes:
(i) the Sepaku Semoi Dam project which has reached 82% completion and is
targeted to be operated in June 2023; and (ii) the construction of the new state
palace.44
C. IKN PPP Implementation Schemes and Fundings
Funding for the preparation, development, and relocation of the IKN, as well as the
administration of the IKN Region shall be originating from (i) state budget and/or
37
Appendix 1 Section 1.3 of PR 63/2022, p. 4.
38
Appendix 1 Section 1.3 of PR 63/2022, p. 6.
39
Appendix 4 of PR 63/2022.
40
41
42
Fuji Pratiwi, “Kepala Otorita: Progres Pembangunan IKN Sesuai Jadwal”, Republika.co.id,
accessed via https://www.republika.co.id/berita/rnwmva457/kepala-otorita-progres-
pembangunan-ikn-sesuai-jadwal, on 27 January 2023.
43
Ibid.
44
Ibid.

(ii) other legitimate sources in accordance with the provisions of the laws and
regulations.45
Funding schemes originating from state budget can take form into (i) spending
and/or (ii) financing.46 The funding scheme in the form of spending includes funding
originating from non-tax state revenues.47 Meanwhile, the funding scheme in the
form of financing includes funding originating from state securities.48
Funding schemes originating from other legitimate sources in accordance with the
provisions of the laws and regulations consist of the funding schemes originating
from:49
1. private contributions;
2. creative financing; and
3. IKN special tax and/or IKN special levies stipulated by the IKN Authority
Regulation after obtaining approval from the People's Legislative Assembly
of the Republic of Indonesia.
Article 4 (6) (b) GR 17/2022 provides that funding schemes other than as referred
above would be allowed.
Additionally, funding schemes originating from state budget and other legal
sources consist of the funding schemes originating from:50
1. utilization of state property and/or utilization of assets under the control of
the IKN authority;
2. IKN PPP; and
3. participation of other parties including:
a. assignment of business entities whose capital is partially or wholly
owned by the state;
b. strengthening the role of state-owned legal entities; and
c. creative financing.
Article 4 (5) (b) GR 17/2022 provides that funding schemes other than as referred
above would be allowed.
Funding originating from the state budget and other legal sources in accordance
with the provisions of laws and regulations is carried out by paying attention to
fiscal sustainability and based on GR 17/2022 and the provisions of related laws
and regulations.51
From the aforementioned funding schemes, we would like to provide a focused
discussion on IKN PPP as elaborated below.
D.1. IKN PPP Implementation Schemes
1. Solicited IKN PPP
In a solicited IKN PPP scheme, the GCA initiates the procurement process.
The procedure and stages are similarly regulated in NPPAR 1/2023 and
45
Art. 3 GR 17/2022.
46
Art. 4 (1) GR 17/2022.
47
Art. 4 (2) GR 17/2022.
48
Art. 4 (3) GR 17/2022.
49
Art. 4 (6) GR 17/2022.
50
Art. 4 (5) GR 17/2022.
51
Art. 6 GR 17/2022.

MoNDPR 4/2015, albeit with different scopes. Nonetheless, the stages of
procurement in a solicited IKN PPP scheme under NPPAR 1/2023 and
MoNDPR 4/2015 can be discerned as follows:
a. Planning Stage
Similar to the terms within the ordinary PPP scheme,52 the planning
phase within the IKN PPP scheme consists of activities pertaining to
identification, determination, and budgeting.53 As such, GCA shall
formulate identification documents to identity infrastructure Projects
which shall be procured through IKN PPP scheme.54 The
identification documents shall encompass:55
1) Compliance with the IKN Master Plan and its details, as well
as the National Strategic Area Spatial Plan for IKN while
considering need analysis;
2) Value for money, benefit and social costs, and potential
project revenue and cost schemes;
3) Results of public consultation with due regard to project
needs; and
4) Recommendations and follow-up plans.
Based on the above consideration, the GCA shall determine whether
the relevant project shall utilize the PPP scheme or other funding
scheme.56 If the project is to use the IKN PPP scheme, the GCA shall
submit a list of IKN PPP plans to the Minister of National Development
Planning (“MoNDP”).57
b. Preparation Stage
Preparation stage of IKN PPP includes: (i) formulation of pre-
feasibility study; (ii) supporting activities of IKN PPP;58 and (iii) market
sounding.59
In a solicited IKN PPP scheme, GCA is responsible for the pre-
feasibility study document.60 Similar to a general PPP project,
MoNDPR 6/2022 also sets out the contents which must be contained
in a pre-feasibility study (e.g., institutional, legal, technical, economic,
commercial, and risk aspects).61 In the event that the IKN requires
land procurement, the pre-feasibility study shall include plans on land
procurement.62
52
Art. 11 MoNDPR 4/2015.
53
Art. 18 (2) MoNDPR 6/2022.
54
Art. 19 (2) MoNDPR 6/2022.
55
Art. 19 (4) MoNDPR 6/2022. In accordance with Art. 6 (2) MoNDPR No. 6/2022, the
intended infrastructure must be based on the Master Plan of IKN and the Details of Master
Plan of IKN.
56
Art. 20 (1) MoNDPR 6/2022.
57
Art. 21 (1) MoNDPR 6/2022.
58
In accordance Art. 13 (2) MoNDPR 6/2022, supporting activities include application for
environmental approval, location determination, application for government support, and/or
other necessary licenses.
59
Art. 23 (2) MoNDPR 6/2022.
60
Art. 24 (1) MoNDPR 6/2022.
61
Art. 24 (2) MoNDPR 6/2022.
62
Art. 24 (3) MoNDPR 6/2022.

c. Procurement Stage
Furthermore, the procurement stage of solicited IKN PPP is
conducted through a Tender process,63 which is preceded by or
together with the Prequalification process.64 NPPAR 1/2023
stipulates 3 (three) kinds of Tenders, which are as follows:
1) One step Tender, which is implemented for IKN PPP Projects
where (i) the formulation of its Infrastructure Provision
requirements is clear; and (ii) Optimization Dialogue to attract
the best value for money bid is not necessary.65
2) Two step Tender, which is implemented for IKN PPP Projects
where (i) the formulation of the Minimum Requirements of the
Infrastructure Provision has been formulated and
unchangeable; and (ii) Additional Requirements and
Optimization Dialogue to attract the best value for money bid is
necessary.66
3) Combined Tender and Prequalification, in which the
participants submit the Qualification Documents and Proposal
together, and is implemented by the GCA only in critical and
urgent circumstances.67
d. Transaction Stage
In accordance with Article 27 (5) MonDPR 6/2022, the transaction
stage within a solicited IKN PPP project encompasses: (i) the
procurement of IBE; (ii) signing of IKN PPP agreement; and (iii)
financial close by the IBE.
In a general PPP scheme, Article 32 (1) MoNDPR 4/2015 regulates
that the transaction phase of a PPP project may be commenced after
the GCA commences transaction of the PPP project and after the
conditions to utilize State-owned Assets (Barang Milik Negara or
“BMN”) and/or Regional-owned Assets (Barang Milik Daerah or
“BMD”) for PPP has been fulfilled. This differs from the IKN PPP
scheme, which regulates that the GCA may enter the transaction
phase after: (i) concluding the pre-feasibility study; and (ii) conducting
or having conducted supporting activities (e.g., environmental permit,
location determination, approval of Government Support, and other
licenses).68
Once the IKN PPP project has entered the transaction stage, solicited
IBE procurements are initiated and conducted by the GCA.69 The
procurement shall proceed by taking into account the documents
produced in the PPP preparation phase and market sounding phase,
and shall be initiated only after the GCA issued a statement letter
63
Art. 7 (2) NPPAR 1/2023.
64
Art. 7 (4) jo. Art. 8 (1) (c) NPPAR 1/2023.
65
Art. 8 (2) NPPAR 1/2023.
66
Art. 8 (3) NPPAR 1/2023.
67
Art. 8 (4) & (5) jo. Section B.2.c Chapter III Appendix II NPPAR No. 1/2023.
68
Art. 27 (2) and (3) MoNDPR 6/2022.
69
Art. 6 (1) NPPAR 1/2023.

which determines that the IKN PPP Project is technically,
economically, and financially feasible.70 Moreover, solicited IBE
procurements are divided into (i) procurement preparation stage; (ii)
procurement stage; (iii) IKN PPP agreement execution preparation
stage; and (iv) financial close preparation stage.71
Scheme 1. Stages of Solicited IBE Procurement
Source: NPPAR 1/2023
The procurement stage as mentioned above is conducted through a
Tender process,72 which is preceded by or together with the
Prequalification process as already mentioned below.73
Another interesting point from MoNDP 6/2022 is that it sets out the
minimum content for an IKN PPP agreement, such as provisions
regarding intellectual property rights, assets ownership status,
dispute settlement, and licenses of IBE as one of the conditions
precedents.74
In regard to the IKN PPP agreement, Article 20 (9) MoNDP 6/2022
explicitly opens the possibility for amendment of IKN PPP agreement
after its initial signing. Such amendment could be made based on
consent of the parties (GCA and IBE), so long as it does not change
the: (i) project structure; (ii) financial feasibility of the project; (iii) risk
allocation; and (iv) bidding parameter which have been agreed
beforehand.
Furthermore, it is notable that the period given to the IBE to achieve
financial close a maximum of 4 (four) months,75 with the possibility of
a one-time extension76 for 2 (two) months.77
70
Art. 6 (2) & (3) NPPAR 1/2023.
71
Art. 7 (1) NPPAR 1/2023.
72
Art. 7 (2) NPPAR 1/2023.
73
Art. 7 (4) jo. Art. 8 (1) (c) NPPAR 1/2023.
74
Art. 29 (3) and (8) MoNDPR 6/2022.
75
Art. 30 (1) MoNDPR 6/2022.
76
Art. 30 (4) MoNDPR 6/2022.
77
Art. 30 (7) MoNDPR 6/2022.

e. Implementation of IKN PPP Agreement
The IBE may implement the IKN PPP agreement after it has achieved
financial close.78 The implementation of IKN PPP agreement ranges
from the construction of the infrastructure, provision of services, until
the IKN PPP agreement has elapsed.79
The IBE has to achieve Commercial Operation Date (“COD”) in 36
(thirty-six) months at the latest after financial close had been
achieved.80 This date shall be set within the IKN PPP agreement.81
At the end of the IKN PPP agreement period, IBE shall transfer assets
of IKN PPP to GCA, unless stated otherwise based on Minister of
Finance regulations.82 Article 35 (2) MoNDPR 6/2022 regulates that
the transfer of assets shall be regulated within the IKN PPP
agreement with certain minimum specifications.
Scheme 2. Indicative Timeline for Solicited IKN PPP
Source: Appendix II Chapter I Section A MoNDPR 6/2022
2. Unsolicited IKN PPP
Unsolicited IKN PPP, where projects are initiated and proposed by business
entities, has a slightly different procedure than solicited IKN PPP. The
distinguishing feature of IKN PPP compared to ordinary PPP is the
introduction of the Swiss Challenge as a procurement method, which will be
elaborated further below.
a. Preparation Stage
Business entity may submit initiative of IKN PPP to GCA for
infrastructure procurement which fulfils the following criteria:83
78
Art. 33 (1) MoNDPR 6/2022.
79
Art. 33 (4) MoNDPR 6/2022.
80
Art. 34 (1) MoNDPR 6/2022.
81
Art. 34 (2) MoNDPR 6/2022.
82
Art. 35 (1) MoNDPR 6/2022.
83
Art. 36 (2) MoNDPR 6/2022.

1) the initiated procurement is stated in Master Plan of IKN and
the Details of Master Plan of IKN;
2) the initiated procurement must be economically and financially
viable;
3) the initiating business entity must have adequate financial
capabilities to finance the infrastructure procurement conduct;
and
4) must have additional value for technology innovation, monetary
value, and time efficiency.
The initiating business entity shall convey letter of intent to GCA at
initial stage.84 After receiving letter of intent, GCA shall conduct
adjusted appraisal in accordance with IKN Master Plan and the
Details of IKN Master Plan, and confirmation over GCA’s authority
based on the initiative.85
Once GCA conducted the activities referred above, GCA may
respond the initiative by requesting business entity to submit
Feasibility Study and its supporting documents.86 As opposed to the
ordinary PPP,87 the initiating business entity under the IKN PPP
scheme is not required to submit Pre-Feasibility Study for IKN PPP
projects.
GCA shall assess the initiative IKN PPP proposed by business entity
within 30 (thirty) calendar days.88 In case GCA approves the initiated
IKN PPP, GCA shall issue approval letter on the initiative.89 In the
event the transaction is conducted by means of Swiss Challenge or
direct appointment, GCA shall also issue approval on offer
documents.90 After the issuance of approval letter, GCA may amend
Feasibility Study and its supporting documents for correction
purposes only.91
b. Transaction Stage
Transaction of unsolicited IKN PPP shall be done with terms after the
issuance of approval letter on the initiative by GCA92 and GCA has
commenced and/or supporting activities.93
Akin to solicited IKN PPP, transaction stage conducted by GCA
comprises of (i) IBE Procurement, (ii) signing of IKN PPP Agreement;
and (iii) financial close by IBE.94
Furthermore, unsolicited IKN PPP procurements are conducted
through either of the following process:
84
Art. 39 (1) MoNDPR 6/2022.
85
Art. 39 (2) MoNDPR 6/2022.
86
Art. 39 (3) MoNDPR 6/2022.
87
Art. 21 (2) MoNDPR 4/2015.
88
Art. 40 (2) MoNDPR 6/2022.
89
Art. 40 (6) MoNDPR 6/2022.
90
Art. 40 (7) MoNDPR 6/2022
91
Art. 41 (1) MoNDPR 6/2022.
92
Art. 42 (1) MoNDPR 6/2022.
93
Please refer to Art. 13 (2) MoNDPR 6/2022.
94
Art. 42 (4) MoNDPR 6/2022.

1) One step Tender through Prequalification, which follows the
rules of one step Tender for Solicited IBE Procurement.95
2) Combined Tender and Prequalification, which follows the rules
of Combined Tender and Prequalification for Solicited IBE
Procurement.96
3) Swiss Challenge,97 which is implemented by the GCA under
the consideration of (i) the Initiative approval letter states that
the Initiator is compensated for the right to make an offer by the
IBE against the best bidder (right to match) through Swiss
Challenge; or (ii) the minutes of confirmation on the fulfillment
of Initiator requirements has stated that the Initiator has fulfilled
the requirements.98
4) Direct Appointment, which can only be implemented under the
conditions that (i) the IKN PPP Project is a development of an
infrastructure which was built and/or operated by the same IBE,
(ii) the IKN PPP Project can only be completed with new
technology and there is only 1 (one) capable service provider;
(iii) the Business Entity has owned a majority or the entire land
needed for the IKN PPP Project; and (iv) the Infrastructure
Provision is declared a priority by the GCA.99
Scheme 3. Stages of Unsolicited IBE Procurement
Source: NPPAR 1/2023
95
Art. 11 (2) (a) jo. Art. 12 NPPAR 1/2023.
96
Art. 11 (2) (b) jo. Art. 13 NPPAR 1/2023.
97
According to Art. 1 (41) NPPAR 1/2023, is a procurement method where the proposal of
the Initiator is contested by a best-ranked Challenger.
98
Art. 11 (2) (c) jo. Art. 14 NPPAR 1/2023.
99
Art. 11 (2) (d) & jo. Art. 11 (7) NPPAR 1/2023.

c. Implementation of IKN PPP Agreement
Pursuant to Article 44 MoNDPR 6/2022, the provisions on the
implementation of IKN PPP Agreement for solicited PPP are also
applicable in case of unsolicited PPP.
In summary, the general indicative timeline for an unsolicited IKN PPP is
demonstrated in the graph below.
Scheme 4. Indicative Timeline for Unsolicited IKN PPP
Source: Appendix II Chapter I Section B MoNDPR 6/2022
3. Other Notable Key Provisions in IKN PPP Scheme
In addition to the provisions within the unsolicited and solicited IKN PPP
scheme as elaborated within the previous section, other notable provisions
include:
a. Clawback Exemption Facility
In conducting phases of IKN PPP, GCA may conduct cooperation
through Government Support in the form of fiscal contribution in
accordance with each GCA’s scope of authority based on the
prevailing laws and regulations with the aim to enhance the financial
adequacy and effectiveness of IKN PPP.100 The Government Support
one of which is comprises of the utilization of BMN/BMD and/or ADP
as a support from the Ministry of Finance which are given by
considering the national fiscal capacity.101
In relation with the utilization of BMN/BMD and/or ADP, such
supporting activities can obtain a claw back elimination facility after
obtaining an approval from the Ministry of Finance as the Asset
Manager.102
100
Art. 1 (33) MoNDPR 6/2022.
101
Art. 13 (4) (b) MoNDPR 6/2022.
102
Art. 13 (6) MoNDPR 6/2022.

b. Other Types of Return on Investment
Article 14 of MoNDPR 6/2022 affirms that the return on investment for
IKN PPP may utilize: (i) user payment; (ii) availability payment; and/or
(iii) other forms of returns in accordance with the laws and
regulations.103 Return on investment through other forms may be
derived from other sources of income which are not directly related to
the services provided by the infrastructure.104 In regard to this, such
an investment return scheme should be applied with terms that are
calculated according to the present value and are agreed upon with a
reasonable profit value.105 Examples of return on investment through
other forms include a visitation place within a hospital or a commercial
area within an infrastructure (e.g., road or transit-oriented
development infrastructure).106
c. Transition Mechanism from Solicited PPP to Unsolicited PPP
Transition of a solicited PPP project to become an unsolicited PPP
project could be conducted within the preparation or transaction stage
of IKN PPP.107 Such a transition may only occur if one of the following
conditions is fulfilled:108
1) there is no business entity that passes the prequalification
stage;
2) there is no bidder that has submitted an offer;
3) none of the IBE procurement participants has passed the
offering phase;
4) the IBE has failed to reach a financial close.
The transition of a Project from a solicited PPP project to become an
unsolicited PPP project may be carried out by comparing the
feasibility study and supporting documents made by the initiating
business entity with the pre-feasibility study document formulated by
the GCA. For a solicited PPP to become an unsolicited PPP project,
the feasibility study brought by the initiating business entity shall
possess, at minimum, the following additional values: (i) innovative
element; (ii) advantage in value for money; (iii) advantage in
economic and financial feasibility.109
d. Transition Mechanism from Unsolicited PPP to Solicited PPP
An IKN PPP project in the form of unsolicited PPP may be
transformed into a solicited PPP project during the transaction stage,
and only if one of the following scenarios has occurred:110
103
Art. 14 (2) MoNDPR 6/2022.
104
Art. 14 (3) MoNDPR 6/2022.
105
Appendix II Chapter 3 Section D Point 4.3 MoNDPR 6/2022.
106
Ibid.
107
Art. 45 (3) MoNDPR 6/2022.
108
Art. 45 (4) MoNDPR 6/2022.
109
Art. 45 (2) and Appendix I Chapter III Section A Point 1 (b) MoNDPR 6/2022.
110
Art. 46 (2) MoNDPR 6/2022.

1) there is no business entity that passes the prequalification
stage;
2) none of the IBE procurement participants has passed the
offering phase;
3) the IBE has failed to reach a financial close.
e. Transition of GCA
Based on Article 47 (1) of MoNDPR 6/2022, the transition of GCA can
be done: (i) from the Head of IKN Authority to the Minister/Head of
Institution/Director of State-Owned Enterprise (Badan Usaha Milik
Negara or “SOE”); or (ii) from the Minister/Head of Institution/Director
of SOEs to the Head of IKN Authority.
Moreover, the GCA transition is carried out at the fastest stage of
implementing the cooperation agreement, by submitting: (i)
identification documents; (ii) preparation documents; (iii) procurement
documents; (iv) cooperation agreement documents; and (v) all other
supporting documents.111 According to Article 47 (8) of MoNDPR
6/2022, the transition period of GCA shall be carried out no later than
1 (one) month, concurrent with the establishment of a new IKN PPP
Committee. It should be noted that in the event of a GCA transition in
a project which have obtained Government Guarantee, the previous
GCA and current GCA shall coordinate altogether with the relevant
ministries and/or Indonesia Infrastructure Guarantee Fund/PT
Penjaminan Infrastruktur Indonesia (“IIGF”).112
f. Business Entity Preparatory Body Panel
The NPPAR 1/2023 introduced another avenue for the involvement
of business entities in IKN PPP Projects, namely through the setting
up of a Business Entity Preparatory Body Panel. The formation of the
panel shall be carried out by the GCA through Prequalification.113
Moreover, the panel is tasked with assisting the GCA from the
Planning stage to Transaction stage, Preparatory stage to
Transaction Stage, or Transaction stage of a Procurement process.114
The panel will vary by size, period, and form, which will be based upon
prior assessment by the Committee of IKN PPP.115 As a matter of
demonstration, NPPAR 1/2023 outlined 2 (two) examples of panels
based upon (i) sector; and (ii) area.116 Sectoral Business Entity
Preparatory Body Panel may be needed, for instance, for IKN PPP
Projects in the sectors of railway or airport. On the other hand, areal
Business Entity Preparatory Body Panel may be needed, for instance,
for IKN PPP Projects needing expertise in technical, financial, or
operational and maintenance areas.117
111
Art. 47 (6) and (7) MoNDPR 6/2022.
112
Art. 48 (1) MoNDPR 6/2022.
113
Art. 17 (2) LKPRR 1/2023.
114
Art. 1 (14) jo. Art. 17 (1) NPPAR 1/2023.
115
Section A.1 Chapter III Appendix IV of NPPAR 1/2023.
116
Section A.2.d Chapter III Appendix IV of NPPAR 1/2023.
117
Ibid.

g. Business Entity Panel
According to Article 19 NPPAR 1/2023, the GCA is able to setup a
Business Entity Panel through Prequalification.118 In case where the
GCA setup a Business Entity Panel, the Business Entity which is a
member of the Business Entity Panel is able to participate directly in
the IKN PPP procurement process.119
The purpose of the introduction of Business Entity Panel in NPPAR
1/2023 is to expedite the process to reach financial close by creating
a pool of prospective Business Entities which have the potential to
setup an IBE for a given IKN PPP project, from which the GCA can
readily initiate a procurement process.120 In case of an procurement
process utilizing a Business Entity Panel, the Prequalification process
is not necessary to be conducted,121 though the Tender procedure as
applicable to solicited IKN PPP procurement and unsolicited IKN PPP
procurement shall remain applicable for procurement through
Business Entity Panel.
D.2. IKN PPP Financing Schemes and Government Support
As mandated by GR 17/2022, the Ministry of Finance has issued MoFR 220/2022
which explains the government support for government cooperation with business
entities and creative financing in the context of accelerating infrastructure provision
in IKN. Moreover, the structure of MoFR 220/2022 consist of: (i) supporting facility
for the funding scheme implementation; (ii) Project Development Facility (“PDF”);
(iii) Government Support for IKN PPP; (iv) Availability Payment (“AP”) scheme; (v)
infrastructure financing provider, which can be seen in the graphic below:
Scheme 4. Types of Government Support
Source: MoFR 220/2022
For the purpose of this report, we only elaborate the government supports provided
by the Ministry of Finance, as will be further elaborated in the following sections.
118
Art. 19 (1) NPPAR 1/2023.
119
Art. 19 (2) NPPAR 1/2023.
120
Section A Chapter I Appendix V NPPAR 1/2023.
121
Art. 11 (4) NPPAR 1/2023.

1. Funding Scheme
Funding for the preparation, development and relocation of the IKN, can be
done through: (i) state budget; or (ii) other legitimate sources in accordance
with laws and regulations.122 Moreover, funding scheme from state budget
and other legitimate sources can be in the form of: (i) IKN PPP; (ii)
assignment of an entity whose capital is partly or wholly owned by the state;
(iii) financing sourced from government securities; (iv) funding or financing
support scheme or international funding; (v) utilization of BMN and/or
utilization of assets owned by IKN authority; or (vi) creative financing.123
The creative financing can be in the form of blended finance124.125 Creative
Financing is determined by the Minister of Finance and then delegated to
the Directorate General of Financing and Risk Management (“DGFRM”).126
In order to support funding scheme, the government provides government
support.127 Government Support can be provided for projects in accordance
with laws and regulations regarding IKN Master Plan and the details of IKN
Master Plan.128
Furthermore, the Government Support include:129
a. funding scheme for IKN PPP is consist of:
1) transaction preparation and execution facilities which includes
supporting facility for the funding scheme implementation and
project development facility;
2) Government Guarantee;
3) BMN utilization; and/or
4) viability gap fund.
b. funding scheme for creative financing is given transaction preparation
and execution facilities which includes supporting facility for the
funding scheme implementation and project development facility.
The abovementioned supporting facility for the funding scheme
implementation is prioritized to provide IKN infrastructure in Central
Government area.130
2. Supporting Facility for the Funding Scheme Implementation
Based on Article 3 (2) (a) (i) MoFR 220/2022, types of government support
provided by the Ministry of Finance for the IKN PPP funding scheme, one of
which is in the form of supporting facility for the funding scheme
implementation.131 Such supporting facility can only be used to support
122
Art. 2(1) MoFR 220/2022.
123
Art. 2 (2) MoFR 220/2022.
124
Based on Art. (2) (4) MoFR 220/2022, blended finance means funding synergy between
the state budget and other legitimate sources including crowdfunding and philanthropic
funding schemes.
125
Art. 2 (3) MoFR 220/2022.
126
Art. 2 (5) & (6) MoFR 220/2022.
127
Art. 2 (7) MoFR 220/2022.
128
Art. 3 (1) MoFR 220/2022.
129
Art. 3 (2) MoFR 220/2022.
130
Art. 3 (3) MoFR 220/2022.
131
Based on Art. 1 (14) MoFR 220/2022, Supporting Facility for the Funding Scheme
Implementation means the Government Support provided by the Ministry of Finance to the

financing for the procurement of IKN PPP infrastructure, specifically in the
Central Government areas.132 Furthermore, supporting facility for the
funding scheme implementation are provided for activities which at least
includes:133
a. preparation of studies and/or land acquisition plan documents or
location determination;
b. preparation of the regulatory framework;
c. preparation of studies and/or documents indicating descriptions of
priority projects targeted to operate in the Central Government area
of IKN; and/or
d. preparation of studies and/or recommendation documents indicating
the use of sources and financing schemes to be used in the
framework of funding the provision of IKN infrastructure.
Additionally, the implementation of supporting facility consists of, among
others: (i) application; (ii) review; (iii) implementation; and (iv) determination
of output results.134 Particularly at the initial stage, an application for the use
of the supporting facility for the funding scheme implementation shall be
submitted in the form of a letter by the Head of IKN Authority to the Ministry
of Finance.135 Pursuant to Article 10 (1) MoFR 220/2022, the procurement
of the supporting facility for the funding scheme implementation is carried
out by the Ministry of Finance through the DGFRM. In relation with such
implementation, Minitry of Finance may also assign SOEs to carry out the
related facilities.136
Moreover, according to Article 11 (1) MoFR 220/2022, the relevant SOEs
that has been assigned by the Ministry of Finance shall submit an Output
Results to the DGFRM and after the Ministry of Finance has conducted a
review,137 then DGFRM is entitled to issue an approval.138
3. Project Development Facility
Based on Article 15 (1) MoFR 220/2022, PDF are provided and used to
support the provision of IKN Infrastructure which plan to be carried out
through the IKN PPP funding scheme. One of the aims for the provision of
PDF is to assist: (i) the compiling of project documents (business case)
needed in the project development stage; (ii) carrying out transactions; and
(iii) implementing IKN Infrastructure Provision agreements.139 The phases
of PDF procurement also consist of: (i) application; (ii) review; (iii)
implementation; and (iv) determination of output results.140
Furthermore, PDF will be provided through stages which consist of: (i) pre-
preparation stage; (ii) preparation stage; (iii) transaction stage; and/or (iv)
IKN PPP Authority, in the context of preparing documents for the provision of IKN
infrastructure in the area of the capital city.
132
Art. 5 (1) MoFR 220/2022.
133
Art. 6 MoFR 220/2022.
134
Art. 7 MoFR 220/2022.
135
Art. 8 (1) MoFR 220/2022.
136
Art. 10 (2) MoFR 220/2022.
137
Art. 12 (1) MoFR 220/2022.
138
Art. 12 (5) MoFR 220/2022.
139
Art. 15 (2) (b) MoFR 220/2022.
140
Art. 14 MoFR 220/2022.

the agreement implementation stage.141 Additionally, the Ministry of Finance
can adjust the scope of the PDF based on the review results on IKN PPP
needs.142 It should be noted that the PDF granting mechanism for solicited,
unsolicited, and projects with creative financing schemes has its own
requirements which are further regulated in Article 17 to Article 28 MoFR
220/2022. However, in essence the form of facilities provided for the 3
(three) related types of the Project remains given in the form of PDF.
4. Government Supports for IKN PPP
Applications for government support are submitted simultaneously with
applications for PDF in a single letter addressed to the Ministry of Finance.143
The government supports for IKN PPP can be in the form of as follows:
a. Clawback Exemption Facility
Infrastructure guarantee through the IKN PPP scheme is a Government
Guarantee that is implemented by the Ministry of Finance together with
IIGF.144 The Government Guarantee is carried out with the following
conditions: (i) Government Guarantees with different infrastructure risks
in one IKN infrastructure provision between the government through the
Ministry of Finance and IIGF are carried out by sharing infrastructure
risks; and/or (ii) Government Guarantee for the same infrastructure risk
in one IKN infrastructure provision between the government through the
Ministry of Finance and IIGF is carried out by dividing the guarantee
value for the guaranteed infrastructure risk.145
In order to optimize IIGF function, Ministry of Finance can provide
support as stipulated in the ministerial regulation regarding the scope of
Government Guarantee management by IIGF.146 In addition, the
Ministry of Finance can provide liquidity support in the form of a
backstop loss limit which is a replacement for the excess portion of the
IIGF guarantee by the Ministry of Finance for guarantee claims that
have been paid by IIGF.147
Furthermore, to implement the principles of control and management of
state financial risks, the Government Guarantee process for the IKN
infrastructure provision is carried out through a single executor
mechanism by IIGF (single window policy) by prioritizing the integration
of other government support determinations.148 Single executor
mechanism by IIGF (single window policy) includes: (i) guarantee
granting process; and/or (ii) process of monitoring and managing risks,
claims, as well as payments.149
Government Guarantee on the provision of IKN infrastructure through
the IKN PPP is given for infrastructure risks caused by: (i) the action or
inaction of the GCA or the government other than the GCA in matters
141
Art. 16 (1) MoFR 220/2022.
142
Art. 16 (2) MoFR 220/2022.
143
Art. 28 (1) MoFR 220/2022.
144
Art. 29 (1) MoFR 220/2022.
145
Art. 29 (2) MoFR 220/2022.
146
Art. 30 (2) MoFR 220/2022.
147
Art. 30 (3) MoFR 220/2022.
148
Art. 31 (1) MoFR 220/2022.
149
Art. 31 (3) MoFR 220/2022.

which according to laws and regulations indicates that the GCA or the
government other than the GCA has the authority or authority to take
such action; (ii) policies of the GCA or government other than the GCA;
(iii) unilateral decision of the GCA or government other than the GCA;
and (iv) the GCA's inability to carry out an obligation determined by the
IBE based on the IKN PPP Agreement (breach of contract).150
In the event that the Ministry of Finance and/or IIGF as guarantor in the
Government Guarantee have performed their obligations to the
guaranteed recipient based on the Government Guarantee agreement,
the GCA is obliged to fulfill the regress right.151
b. BMN Utilization
In order to increase the feasibility of Infrastructure projects in IKN
through the IKN PPP, the Ministry of Finance can provide support in
utilization rights over BMN.152 BMN utilization arrangements are
regulated in GR 27/2014. Based on Article 27 of GR 27/2014, the form
of utilization of BMN is in the form of: (i) rent/sewa; (ii) borrow-to-
use/pinjam pakai; (iii) utilization cooperation/kerja sama pemanfaatan;
(iv) build-operate-transfer or build-transfer-operate/bangun guna serah
atau bangun serah guna; or (v) cooperation on infrastructure
provision/kerja sama penyediaan infrastruktur153.
c. Viability Gap Fund
Viability Gap Fund (“VGF”) is a government support by means of fiscal
contribution which is financial in nature given to the IKN PPP project by
the Ministry of Finance, aims to: (i) reduce the premium risk during the
construction period to encourage the participation of the private sector
or business entity in the IKN infrastructure procurement; and (ii)
actualize quality services, right on target, and on time.154
Furthermore, VGF is given to the IKN Infrastructure procurement for a
certain portion of the total infrastructure construction costs, provided
that its value is not significant to the said costs.155 The total infrastructure
construction costs cover: (i) construction costs; (ii) equipment costs; (ii)
installation costs; (iii) interest costs on loan that apply during the
construction period; (iv) tax costs; and (v) other costs related to
construction (exclude land acquisition costs).156
In addition, the criteria of VGF that must be fulfilled for the IKN
infrastructure procurement through the IKN PPP are as follows: (i)
solicited projects; (ii) carried out by IBE; (iii) conducted in accordance
with the IKN PPP agreement which sets out the assets transfer scheme
and/or its management from IBE to GCA at the end of cooperation
period; and (iv) the results of pre-feasibility study.157 The amount of the
150
Art. 34 (1) MoFR 220/2022.
151
Art. 36 (1) MoFR 220/2022.
152
Art. 40 (1) MoFR 220/2022.
153
Based on Art. 1 (16) GR 27/2014, infrastructure provision cooperation is cooperation
between the government and business entities for infrastructure provision activities in
accordance with the provisions of laws and regulations.
154
Art. 1 (16) jo. Art. 41 MoFR 220/2022.
155
Art. 42 (1) and (2) MoFR 220/2022.
156
Art. 42 (3) and (4) MoFR 220/2022.
157
Art. 43 (1) MoFR 220/2022.

VGF approved by the Ministry of Finance is the solely financial
parameter in determining the business entity resulting from the
procurement.158
5. Availability Payment
As already mentioned above, based on Article 46 (1) MoFR 220/2022, the
AP scheme for the provision of IKN PPP shall be carried out through the
following mechanism: (i) state budget; and/or (ii) other legitimate sources in
accordance with the prevailing laws and regulations. Moreover, in order to
minimize the investment return risk for IBE or the private sector and financial
institutions, the AP scheme shall be prioritized as the return-on-investment
scheme for the provision of IKN PPP.159
The purpose of implementing the AP scheme in IKN PPP is to: (i) ensure
the availability of quality services to the public on an ongoing basis; and (ii)
optimizing the GCA’s budget value (concerning the value for money).160
Furthermore, in submitting an application for the AP scheme, the relevant
party is obligated to prepare the following documents:161
a. suitability of the provision of IKN infrastructure with the IKN Master
Plan and Details of the IKN Master Plan;
b. provision of IKN Infrastructure in which the IBE is procured through
fair, open, and transparent election stages; and
c. commitment letter of AP Implementation.
Additionally, as already mentioned above, pursuant to Article 49 MoFR
220/2022, The AP scheme is used in the IKN infrastructure procurement
through the IKN PPP with due observance of the following provisions: (i) the
AP scheme can be combined with other return on investment schemes; and
(ii) in the provision of AP funds, it can be taken into account the receipt or
results of project income from other sources. IKN PPP scheme which utilize
AP as the return on investment scheme shall be entitled to a Government
Support.162
The implementation of AP scheme shall be conducted by the GCA to IBE
through the IKN PPP agreement.163 Moreover, in the event that the IKN
Infrastructure procurement uses the AP scheme, then the IKN PPP
agreement shall contains at least provisions concerning:164
a. objective and measurable output specifications and performance
indicators for the services;
b. AP agreed calculation formula which serves as the basis for
calculating GCA’s obligations to the IBE;
c. an effective monitoring system for performance indicators as referred
to in letter a; and
d. incentive and penalty system for the GCA and/or the IBE.
158
Art. 43 (2) MoFR 220/2022.
159
Art. 46 (4) MoFR 220/2022.
160
Art. 47 MoFR 220/2022.
161
Art. 48 MoFR 220/2022.
162
Art. 52 MoFR 220/2022.
163
Art. 50 (1) MoFR 220/2022.
164
Art. 50 (2) MoFR 220/2022.

6. Infrastructure Financing Provider
In order to accelerate the provision of IKN infrastructure, the Ministry of
Finance may assign companies engaged in infrastructure financing under
the guidance of the Ministry of Finance as infrastructure financing
providers.165 Furthermore, the Ministry of Finance can cooperate with
institutions engaged in investment management as infrastructure financing
providers.166 The infrastructure financing provider acts as a catalyst for
financing the provision of IKN infrastructure through the IKN PPP scheme in
order to accelerate the fulfillment financial close of IBE and creative
financing.167
165
Art. 56 (1) MoFR 220/2022.
166
Art. 56 (4) MoFR 220/2022.
167
Art. 57 (1) & (2) MoFR 220/2022.

Bibliography/References
1. Law Number 3 of 2022 on the Capital City (“Law 3/2022”).
2. Government Regulation Number 27 of 2014 on the Management of State-
Owned/Regional Government-Owned Assets as amended by Government
Regulation Number 28 of 2020 (“GR 27/2014”).
3. Government Regulation Number 17 of 2022 on Funding and Budget
Management in the Framework of Preparation, Development, and
Relocation of the Capital City and Implementation of The Regional
Government of Special Capital City of Nusantara (“GR 17/2022”).
4. Presidential Regulation Number 63 of 2022 on the Detailing of IKN Master
Plan (“PR 63/2022”).
5. Minister of National Development Planning/Head of National Development
Private Partnership for Infrastructure Procurement as amended by Minister
of National Development Planning/Head of National Development Planning
Agency Regulation Number 2 of 2020 (“MoNDPR 4/2015”).
6. Minister of National Development Planning/Head of National Development
Private Partnership in Nusantara Capital City (“MoNDPR 6/2022”).
7. Minister of Finance Regulation Number 220/PMK.08/2022 of 2022 on the
Government Support for Public-Private Partnership and Creative Financing
in The Context of Accelerating Infrastructure Provision in Nusantara Capital
City (“MoFR 220/2022”).
8. National Procurement Policy Agency Regulation Number 1 of 2023 on the
Procedure of Business Entity Procurement through Public Private
Partnership with Business Entity in Nusantara Capital City (“NPPAR
1/2023”).”)
9. Cabinet Secretariat of Indonesia, “Pemindahan Ibu Kota, 26 Agustus 2019,
di Istana Negara, Provinsi DKI Jakarta”, accessed via
https://setkab.go.id/pemindahan-ibu-kota-26-agustus-2019-di-istana-
negara-provinsi-dki-jakarta/ on 27 January 2022.
10. MoNDP/Bappenas, “Socialization Materials of IKN Master Plan on Law
3/2022”, accessed via https://bappeda.kaltimprov.go.id/storage/data-
paparans/March2022/c9lVSaQqMGEtSQKMiVvt.pdf, on 27 January 2023.

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intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee
concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it
applies to your circumstances before deciding to take any action.
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