The Government of Indonesia

State Ministry for National Development Planning /

National Development Planning Agency (Bappenas)

UNOFFICIAL ENGLISH VERSION OF PERMEN PPN

NO. 3 / 2012 ON THE OPERATIONAL GUIDELINES
MANUAL FOR THE IMPLEMENTATION OF PUBLIC
PRIVATE PARTNERSHIP IN THE PROVISION OF
INFRASTRUCTURE

June 2013

Loan ADB No. 2264-INO (SF)

PT GAFA MULTI CONSULTANTS

UNOFFICIAL ENGLISH VERSION OF PERMEN PPN NO.

265095

MMI

MMI

21

C:\265095 - P3CU Project\03. Documents\3.2

3 / 2012 ON
THE
OPERATIONAL
Gdoc
UIDELINES MANUAL
Outgoing\Reports\PERMEN
PPN 3-2012\Cover
01 June 2013

FOR THE IMPLEMENTATION OF PUBLIC PRIVATE

PARTNERSHIP IN THE PROVISION OF

INFRASTRUCTURE
PERMEN PPN 3/2012

June 2013

Loan ADB No. 2264-INO (SF)

Mott MacDonald, S Widjojo Centre, 3rd Floor, Jalan Jenderal Sudirman Kav.71, Jakarta, 12190, Indonesia
T +62 21 252 6588 F +62 21 252 6592 www.mottmac.com

REGULATION OF THE STATE MINISTER OF NATIONAL DEVELOPMENT

PLANNING/
HEAD OF NATIONAL DEVELOPMENT PLANNING AGENCY
NUMBER 3 OF 2012
ON

THE OPERATIONAL GUIDELINES MANUAL FOR THE IMPLEMENTATION OF

PUBLIC PRIVATE PARTNERSHIPS IN THE PROVISION OF
INFRASTRUCTURE

BY THE GRACE OF GOD ALMIGHTY

THE STATE MINISTER OF NATIONAL DEVELOPMENT PLANNING/

HEAD OF NATIONAL DEVELOPMENT PLANNING AGENCY,

Considering

: a. that in order to carry out the main tasks and coordination

functions,

synchronization,

preparation

of

policy

formulation, monitoring and evaluation, as well as work

relation in the national development planning in the field
of facilities and infrastructure, it is necessary to take
acceleration steps of infrastructure provision through
public private partnership;

b. that

in

order

to

encourage

private,

public

and

government participation in the service of means and

infrastructure as articulated in the National MediumTerm Development Plan of 2010-2014, Regulation of the
1

Minister of National Development Planning/Head of

National Development Planning Agency Number 4 of
2010 on General Guidelines of Implementation of
Cooperation between the Government and Business
Entities in Infrastructure Provision has been enacted;

c. that by the presence of amendment of laws and

regulations related to the Cooperation between the
Government and Business Entities in Infrastructure
Provision, then the Ministerial Regulation as referred in
letter b shall be altered;

d. that based on the consideration as intended in letter c, it

is necessary to enact Regulation of the State Minister of
National

Development

Planning/Head

of

National

Development Planning Agency on the Operational

Guidelines Manual for the Implementation Public Private
Partnerships in Infrastructure Provision;

In view of

: 1. President Regulation Number 82 of 2007 on National

Development Planning Agency;

2. President Regulation Number 47 of 2009 on Formation

and Organization of State Ministry as having been

amended several times, last by President Regulation

Number 91 of 2011;

3. President Regulation Number 5 of 2010 on National

Medium-Term Development Plan of 2010-2014;

4. Regulation of the State Minister of National Development

Planning/Head
Agency

of

National

Number

PER.

Development

Planning

005/M.PPN/10/2007

on

Organization and Work Procedures of the State Ministry

of

National

Development

Planning/National

Development Planning Agency;

HAS DECIDED:

Promulgate

: REGULATION OF THE STATE MINISTER OF NATIONAL

DEVELOPMENT

PLANNING/HEAD

DEVELOPMENT

PLANNING

AGENCY

ON

THE

OPERATIONAL

GUIDELINES

MANUAL

FOR

THE

IMPELEMENTATION
PARTNERSHIPS

OF
IN

THE

OF

PUBLIC

NATIONAL

PRIVATE

PROVISION

OF

INFRASTRUCTURE

CHAPTER I
GENERAL PROVISIONS

Article 1

In this Minister Regulation which is meant by:

1. The Operational Guidelines Manual of the Implementation of PPP Project,

hereinafter referred to as the OGM, is the guidelines and procedures used
as references by the Government Contracting Agency of the PPP Project in
the implementation of PPP Project based on the PPP Contract.

2. Provision of Infrastructure is the activities covering the construction works to

build or improve infrastructure capacities and/or activities of infrastructure
management and/or infrastructure maintenance in order to improve the
benefits of infrastructure services.
3. The Government Contracting Agency of PPP Project, hereinafter referred to
as the GCA, is the Minister, Institutional Head, Regional Head and President
Director of the State/Regional-Owned Enterprise in compliance with laws
and regulations pertaining to the related sector saying that the Provision of
Infrastructure by the Government shall be managed or carried out by the
State/Regional-Owned Enterprise.
4. Minister/Institutional Head is the head of ministry/institution which the scope,
duties and responsibilities thereto include the type of infrastructure regulated
in this Ministerial Regulation.
5. Regional Head is the governor of a province or the regent of regency or the
mayor of a city.
4

6. The Business Entity is a private business entity in the form of a limited

liability, State-Owned Enterprise (BUMN), Regional-Owned Enterprise
(BUMD), and cooperative.

7. Public Private Partnership is the cooperation between the Government and

Business Entities in the Provision of Infrastructure through a PPP Contract or
Business Licence.
8. PPP Contract is a written agreement for Provision of Infrastructure between
the Government and the Business Entity decided on via public tender and
not in conflict with the laws and regulations.
9. PPP Project is the Provision of Infrastructure carried out through a PublicPrivate Partnerships Contract between the GCA and the Business Entity.
10. Public Consultation is a process of interaction between the GCA and
stakeholders to enhance the transparency, efficiency, accountability and
effectiveness of the PPP Project.
11. Government Support is both the fiscal and non-fiscal contribution provided
by the Minister/Institutional Head/Regional Head and/or Minister of Finance
in accordance with their respective authority based on the laws and
regulations in order to improve the financial feasibility of the PPP Project.
12. Government Guarantee is the financial compensation and/or compensation
in other forms provided by the Minister of Finance to the Business Entity
through a risk allocation scheme for the PPP Project.
13. State Minister of National Development Planning/Head of National
Development Planning Agency, hereinafter referred to as the Minister of

Planning, is the minister managing the government affairs in the field of

national development planning.
14. Minister of Finance is the minister managing the government affairs in
financial sector and states assets.
15. Infrastructure Guarantor Business Entity, hereinafter referred to as the BUPI,
is a business entity founded by the Government and assigned with special
tasks to provide infrastructure guarantee in accordance with the existing
laws and regulations.
16. Regional Government is the Regional Head together with other regional
autonomy officials as the Regional Executive Agency.
17. Central Government, hereinafter referred to as the Government, is the
President of the Republic of Indonesia holding the power of administration of
the State of the Republic of Indonesia as stipulated in the Constitution of the
Republic of Indonesia of 1945.
18. PPP Book is the document containing the PPP Projects plan specified in the
List of Project Priorities set by the GCA and has undergone evaluation by the
Minister of Planning to be determined as the Potential and/or Prospective
and/or Ready-to-Offer PPP Projects.

Article 2
The OGM is intended to:
a. provide guidelines for the Minister/Institutional Head/Regional Head in the
implementation of PPP Project to encourage private participation in the
Provision of Infrastructure;

b. provide guidelines for the Minister in preparing sector guidelines of

implementation of PPP projects in the related sector.

Article 3
(1) This OGM applies to PPP Projects implemented through a Contractual
Arrangement.
(2) The scope of infrastructures regulated under this OGM include:
a. transportation infrastructure, covering airport services, provision and/or
services of harbour, facility and infrastructure of railways;
b. road infrastructure, covering toll roads and toll bridges;
c. irrigation infrastructure, covering ducts to transport raw water;
d. infrastructure of drinking water, covering building for raw water collection,
transmission network, distribution network, processing installation of
drinking water;
e. sanitation infrastructure covering installation of wastewater, collecting
network and primary network, and waste facilities covering transporters
and disposal sites;
f. telecommunication

and

informatics

infrastructure,

covering

telecommunication networks and e-government infrastructures;

g. electricity infrastructure, covering power plant, including development of
electric power derived from geothermal, transmission or distribution of
electric power; and
h. oil and natural gas, covering the transmission and/or distribution of oil and
natural gas.

CHAPTER II

SCOPE OF PPP PROJECT DEVELOPMENT CYCLE

Article 4
(1) The PPP Project Development Cycle (the PPP Project Cycle) shall be
carried out in the following phases:
a. Planning of PPP Project;
b. Preparation of PPP Project;
c. Transaction of PPP Project; and
d. Implementation Management of PPP Contract.
(2) In performing the phases of the PPP Project Cycle as referred in paragraph
(1), the supporting activities constituting parts of the implementation ofthe
respective PPP Project phase may simultaneously be carried.
(3) The supporting activities as referred in paragraph (2) cover the activities of:
a. planning and implementation and land acquisition and resettlement;
b. environmental study; and
c. request for the bestowing of Government Support and/or Government
Guarantee.
Further provisions in respect of the implementation phases of the PPP Project
Cycle as referred in paragraph (1) are regulated in the Attachments herein,
forming one entirity and inseparable part of this Ministerial Regulation.

Article 5
(1) The responsible party to implement PPP Projects as referred in Article 4 is
the GCA.
8

(2) The GCA may be assisted by a consultant to conduct the planning,

preparation, transaction of the PPP Project and management of the PPP
Contract.
(3) The procurement of consultant as referred in paragraph (2) shall be carried
out by the GCA in accordance with the laws and regulations.
Article 6
(1) The plan of developing PPP Projects as referred in Article 4 paragraph (1)
shall be in accordance with the National Medium-Term Development Plan,
Ministry/Institutionals Strategic Plan and Work Plan, and/or the Regional
Medium-Term Development Plan and Regional Governments Work Plan in
accordance with the laws and regulations.
(2) PPP Projects offered to Business Entities shall be commercially feasible.
(3) A PPP Project is declared commercially feasible if it is legally, economically,
technically,

financially

feasible,

provides

social

benefits,

and

is

environmentally sustainable.

Article 7
(1) In carrying out PPP Projects, the GCA shall perform Public Consultations.
(2) The Public Consultations as referred in paragraph (1) shall be carried out at
the phase of:
a. Planning of the PPP Project Cycle;
b. Project Preparation of the PPP Project Cycle; and
c. Transaction of the PPP Project Cycle.

(3) The Public Consultations at the Planning phase of the PPP Project Cycle as
referred in paragraph (2) letter a is intended to obtain consideration as to the
benefits and impacts of the PPP Project for public interests.
(4) The Public Consultations at the Project Preparation phase of the PPP
Project Cycle as referred in paragraph (2) letter b is aimed to:
a. explore the compliance to social and environmental norms according to
the provisions of laws and rregulationss in the environmental sector;
b. obtain opinion on the attraction and feasibility of the choice of
Cooperation form (modality); and
c. ensure the readiness of the PPP Project.
(5) The Public Consultations at the Transaction phase of the PPP Project Cycle
as referred in paragraph (2) letter c is intended to obtain response from the
stakeholders conducting through testing market interests (market sounding).
(6) The stakeholders as referred in paragraph (5) are derived from investors and
financial institutions.

10

CHAPTER III
THE PLANNING PHASE OF THE PPP PROJECT CYCLE

Article 8
(1) The Planning Phase of the PPP Project Cycle as referred in Article 4
paragraph (1) letter a comprises of activities of:
a. identification and selection of PPP Projects; and
b. prioritization of PPP Projects.
(2) Identification and selection of PPP Projects referred to in paragraph (1) letter
a, is intended to determine potential PPP Projects to be cooperated with
Business Entities (the private sectpr) using the approach of needs analysis,
compliance criteria and determinant factor criteria of the benefits of private
sectors involvement.
(3) Prioritization of PPP Projects referred to in paragraph (1) letter b, is intended
to determine more important projects shall be prioritized by considering the
aspects of public needs, budget capacity, development period and other
strategic considerations.

Article 9
(1) The Planning phase of the PPP Project Cycle as referred in Article 8
paragraph (1) generates a Preliminary Study Document and a List of Priority
of PPP Projects.
(2) The list of Priority of PPP Projects as referred in paragraph (1) is proposed
(to the Minister of Planning) to be registered in the PPP Book.
(3) The PPP Book as referred in paragraph (2) comprises of:
11

a. proposed potential PPP projects;

b. proposed prospective PPP projects; and
c. proposed ready-to-offer PPP projects.
(4) Provisions pertaining to procedures to be registered in the PPP Book are
regulated under Regulation of the Minister of Planning.

Article 10
Further provisions pertaining to the implementation of the Planning Phase of
PPP Project Cycle as referred in Article 8 is regulated in Chapter II of the
Attachment hereof forming one entirity and inseparable part of this Ministerial
Regulation.

12

CHAPTER IV
THE PROJECT PREPARATION PHASE OF THE PPP PROJECT CYCLE

Article 11
(1) The phase of Project Preparation of the PPP Project Cycle as intended in
Article 4 paragraph (1) letter b comprises of activities of:
a. preparation of Preliminary Appraisal of Pre-Feasibility Study; and
b. preparation of Project Readiness Assessment.
(2) The Preparation of Preliminary Appraisal of Pre-Feasibility Study referred to
in paragraph (1) letter a, is intended to obtain initial conclusion of commercial
feasibility of the PPP Project.
(3) The Preparation of Project Readiness Assessment is intended to ensure that
the PPP Project is ready to proceed to the next phase of Transaction of the
PPP Project Cycle.

Article 12
The Project Preparation phase of the PPP Project Cycle as referred in Article 11
generates Documents of PPP Project Preparation.

Article 13
Further provisions pertaining to the implementation of the Preparation Phase of
the PPP Project Cycle as referred in Article 11 is regulated in Chapter III of the
Attachment hereof and forms one entirity and inseparable part of this Ministerial
Regulation.

13

CHAPTER V
THE TRANSACTION PHASE OF THE PPP PROJECT CYCLE
Article 14
The Transaction Phase of the PPP Project Cycle as referred in Article 4
paragraph (1) letter c comprises of:
a. The completion of the Pre-Feasibility Study covering the final appraisal of
the pre-feasibility study (the Final Business Case) and the draft of
procurement plan of the Business Entity; and
b. the public tender of the Business Entity covering the planning and
implementation of the Business Entitys public tender.

Article 15
The Transaction phase of the PPP Project Cycle generates Documents of the
Pre-Feasibility Study of the PPP Project, declaration of the winner of the
Business Entitys public tender and the PPP Contract.

Article 16
In the event the Government Support and/or Government Guarantee are
required, the GCA shall submit:
a. Documents of the Pre-Feasibility Study as referred in Article 14 to the
Minister of Finance to obtain a statement of preparedness to provide the
Government Support; and/or
b. Documents of the Pre-Feasibility Study as referred in Article 14, including
the guarantee proposal, to the BUPI to obtain a statement of
preparedness to provide of the Government Guarantee.
14

Article 17
Further provisions pertaining to the implementation of the Transaction phase of
the PPP Project Cycle as referred in Article 14 is regulated in Chapter IV of the
attachment hereof, which forms one entirity and inseparable part of this
Ministerial Regulation.

15

CHAPTER VI
THE CONTRACT MANAGEMENT PHASE OF THE PPP PROJECT CYCLE

Article 18
(1) The Contract Management Phase of the PPP Project Cycle comprises of:
a. planning for the Implementation of the PPP Contract Management ; and
b. implementation of the PPP Contract Management .
(2) Activities of planning for the implementation of the PPP Contract
Management as referred in paragraph (1) letter b shall be carried out at the
time of:
a. pre-construction, commencing since the signing of the PPP Contract
until the funding is obtained (the financial close);
b. construction, commencing since the beginning of construction until the
PPP Project operates commercially;
c. commercial operation, commencing since the PPP Project operates
commercially until the expiry date of the PPP Contract; and
d. the termination of the PPP Contract.

Article 19
The Contract Management Phase of the PPP Project Cycle generates
documents of report of the implementation the PPP Contract management
periodically.

16

Article 20
(1) In performing the Contract Management Phase of the PPP Project Cycle, the
GCA shall establish a Management Unit of the PPP Contract Management.
(2) The Management Unit of the PPP Contract Management as referred in
paragraph (1) is in charge to prepare, plan and carry out the implementation
of the PPP Contract Management.

Article 21
Further provisions pertaining to the implementation of the PPP Contact
Management of the PPP Project Cycle as referred in Article 18 are regulated in
Chapter V of the attachment hereof, which forms one entirity and inseparable
part of this Ministerial Regulation.

17

CHAPTER VII
THE PROCEDURES OF MANAGING UNSOLICITED PROJECT PROPOSALS

Article 22
(1) The procedures for managing Unsolicited Project Proposals shall be carried
out in the following stages:
a. Stage of Approval of the Unsolicited Project Proposal; and
b. Stage of Implementation of Public Tender of the Unsolicited Project.
(2) The Unsolicited Project Proposal shall meet the conditions of:
a. not being included in the master plan of the related sector;
b. being technically integrated in the master plan of the related sector;
c. being economically and financially feasible; and
d. not requiring Government Support in the terms of fiscal contribution in
financial form.
Article 23
The stage of approval of the Unsolicited Project proposal generates Documents
of the Project Concept, Documents of the Pre-Feasibility Study and Documents
of the Feasibility Study.

Article 24
Further provisions pertaining to the stages of the Unsolicited Project proposal as
referred in Article 22 paragraph (1) are regulated in Chapter VI of the attachment
hereof, which forms one entirity and inseparable part of this Ministerial
Regulation.

18

CHAPTER VIII
TRANSITIONAL PROVISIONS

Article 25
By the enactment of this Ministerial Regulation:
a. PPP Projects that have completely fulfilled the activities in the Planning
phase of the PPP Project Cycle under the Ministerial Regulation prior to the
promulgation of this Ministerial Regulation, then the required activities in the
next phases of the PPP Project Cycle shall adhere to the provisions as
regulated herein.
b. PPP Projects that have completely fulfilled the activities of developing the
preliminary appraisal of the Pre-Feasibility Study (the Outline Business
Case) and the assessment of Project Readiness in the phase of PreFeasibility Study under the Ministerial Regulation prior to the promulgation of
this Ministerial Regulation, then the activities of developing the final appraisal
of the Pre-Feasbility Study (the Final Business Case) and the required
activities in the next phases of the PPP Project Cycle shall adhere to the
provisions as regulated herein.
c. PPP Projects that have completely fulfilled the activities in the Transaction
phase of the PPP Project Cycle under the Ministerial Regulation prior to the
promulgation of this Ministerial Regulation, then the required activities of the
next phase of the PPP Project Cycle shall adhere to the provisions as
regulated herein.

19

CHAPTER IX
CLOSING PROVISIONS
Article 26
By the enactment of this Ministerial Regulation, Regulation of the State Minister
of National Development Planning/Head of National Development Planning
Agency Number 4 of 2010 on General Guidelines of Implementation of
Cooperation between the Government and the Business Entity in Infrastructure
Provision shall be revoked and declared invalid.

Article 27

This Ministerial Regulation shall come into force since the date of its enactment.
For public cognisance, this Ministerial Regulation shall be promulgated by
placing it in the State Gazette of the Republic of Indonesia.

20

Stipulated in Jakarta
on 27 June 2012

THE STATE MINISTER OF NATIONAL DEVELOPMENT PLANNING/HEAD

OF NATIONAL DEVELOPMENT PLANNING AGENCY
signed

ARMIDA S. ALISJAHBANA

Promulgated in Jakarta
on 28 June 2012

MINISTER OF LAW AND HUMAN RIGHTS

Signed

AMIR SYAMSUDIN
STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2012 NUMBER
662

True copy of its original

Head of Legal Bureau

signed
Emmy Suparmiatun

21

Technical Asistance and Support for Public Private Partnership Central Unit (P3CU) - Unofficial
English Version of Permen PPN no. 3 / 2012 on the Operational Guidelines Manual for the
Implementation of Public Private Partnership in the Provision of Infrastructure

Content
CHAPTER I
INTRODUCTION.............................................................................................

..............................................................................

B. Objectives ........................................................................................

C. Definition .........................................................................................

D. Phasing of the PPP Project Cycle.....................................................

E. Series of Activities related to the PPP Development Cycle............

A. Background

..................................................................

15

THE PLANNING PHASE OF THE PPP PROJECT CYCLE .......................

18

A. General Provisions..............................................................................

18

B. Identification and Selection of PPP Projects...................................

19

C. Prioritaztion of PPP Projects............................................................

20

F. Related Regulations

CHAPTER II

D. Decision Making to Go or Not Go of the proposed PPP Project

to proceed to the Project Preparation Phase of the

PPP Project

Cycle.....................................................................................................

22

E. Supporting Activities during the Planning Phase of the PPP Project

Cycle......................................................................................................
F. Documents generated in the Planning Phase..................................

265095/MMI/MMI/21/A 01 June 2013

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22
23

Technical Asistance and Support for Public Private Partnership Central Unit (P3CU) - Unofficial
English Version of Permen PPN no. 3 / 2012 on the Operational Guidelines Manual for the
Implementation of Public Private Partnership in the Provision of Infrastructure

CHAPTER III
THE PROJECT PREPARATION PHASE OF THE PPP PROJECT CYCLE..

25

A. General Provisions ..............................................................................

25

B. Preparation of Preliminary Appraisal of Pre-Feasibility Study

Documents.........................................................................................

26

C. Assessment of Project Readiness......................................................

36

D. Decision Making for Go or Not Go for the proposed Project to

proceed to the Transaction Phase...... ................................................
E. Supporting

Activities

during

the

Project

37

Preparation

Phase..
F. Documents Generated during the Project Preparation Phase....

37
38

CHAPTER IV
THE TRANSACTION PHASE OF THE PPP PROJECT CYCLE

...............

42

A. General Provisions .............................................................................

42

B. Completion of the Feasibility Pre-study ..............................................

43

C. Procurement of Business Entity

43

........................................................

D. Decision Making for the proposed Project to proceed to the

Procurement Process............................................................................

61

E. Supporting Activities during the Transaction Phase.........................

62

F. Documents generated during the Transaction Phase....................

63

265095/MMI/MMI/21/A 01 June 2013

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Technical Asistance and Support for Public Private Partnership Central Unit (P3CU) - Unofficial
English Version of Permen PPN no. 3 / 2012 on the Operational Guidelines Manual for the
Implementation of Public Private Partnership in the Provision of Infrastructure

CHAPTER V
THE PPP CONTRACT MANAGEMENT PHASE........................................

70

A. General Provisions ..........................................................................

70

B. Planning for the Implementation of the PPP Contract Management

70

C. Activities Performed during the implementation of the PPP Contract

Management........ ...............................................................................

72

D. Other Activities During the PPP Contract Management Phase.............

75

E. Documents during the Contract Management Phase.......................

75

CHAPTER VI
THE PROCEDURES TO MANAGE UNSOLICITED PPP PROJECT
PROPOSALS....................................................................................................

77

A. General Provisions ..............................................................................

77

B. The Stage of Approval Process of Unsolicited PPP Project Proposals

77

C. Implementation of Public Tender for Unsolicited PPP Project........

81

D. Preparation for the Signing of the PPP Contract..................................

101

E.

102

Documents...........................................................................................

265095/MMI/MMI/21/A 01 June 2013

C:\265095 - P3CU Project\03. Documents\3.2 Outgoing\Reports\PERMEN PPN 3-2012\Cover.doc

CHAPTER I
INTRODUCTION
A.

Background

Within the framework of the national development planning in performing the

tasks and functions of coordination, synchronization, preparation of policy
formulation, monitoring and evaluation, as well as management of work relation
in the field of economic infrastructure, the Ministry of National Development
Planning/National Development Planning Agency takes necessary steps in
accelerating the provision of infrastructure through public private partnership.
As stipulated in the National Medium-Term Development Plan of 2010-2014, the
Government encourages participation of the private, public and regional
government in providing services and management of infrastructure. With the
intention that the stakeholders could better understand and carry out PPP project
accordingly, it is necessary to provide an operational guidelines manual (OGM)
for PPP implementation. This OGM is legally enacted as the Regulation of the
State Minister of National Development Planning/Head of National Development
Planning Agency on General Guidelines of Implementation of Cooperation
between the Government and Business Entities (Public-Private Partnerships) in
the Provision of Infrastructure, hereinafter referred to as the OGM.
B.

Objectives

The objectives of this OGM are:

1. to provide guidelines for the line Ministers in preparing guidelines for the
implementation of Public-Private Partnership in their respective sector; and
2. to provide guidelines for Minister/(Non-ministerial) Institutional Head
/Regional Head (Governor/Regent/Mayor) in the implementation of PPP
Project to promote private participation in infrastructure provision.
C.

Definition

In this OGM what is meant by:

1. Regional Cooperation Coordination Team, hereinafter referred to as the
TKKSD, is a team formed by the Regional Head to assist him/her in
preparing regional cooperation.
1

2. The Public Private Partnership Node, hereinafter referred to as the PPP

Node, is a working unit within the Ministry/Institution at the national level or a
division of the TKKSD at the regional level, newly formed or is adhered to
the existing working unit or divisions, with the tasks and functions in the
planning for cooperation with the business entity.
3. Multi-Criteria Analysis, hereinafter referred to as the MCA, describes any
structured approach used to determine overall preferences among
alternative options, where the options accomplish several objectives. In
MCA, desirable objectives are specified and corresponding attributes or
indicators are identified. The actual measurement of indicators need not be
in monetary terms, but are often based on the quantitative analysis (through
scoring, ranking and weighting) of a wide range of qualitative impact
categories and criteria.
4. Social Benefit Cost Analysis, hereinafter referred to as the SCBA, is a
methodology for evaluating a project from the view point of the society (or
economy) as a whole.
5. Economic Internal Rate of Return, hereinafter referred to as the EIRR, is the
calculation of economic interest rate equating the present value of
investment with the present value on returns/benefits in future.
6. Economic Net Present Value, hereinafter referred to as the ENPV, is the
difference of the economic value between the present value of investment
and the present value of returns/benefits planned to be received in future.
7. Financial Internal Rate of Return, hereinafter referred to as the FIRR, is an
indicator to measure the financial return on investment of an income
generation project and is used to make the investment decision. The FIRR is
obtained by equating the present value of investment costs ( as cash outflows ) and the present value of net incomes ( as cash in-flows ).
8. Financial Net Present Value, hereinafter referred to as the FNPV, is the
difference between the present value of investment and the present value of
returns of net cash obtained in future.
9. Weighted Average Cost of Capital, hereinafter referred to as the WACC, is
the determination of level of capital cost by calculating the weighted average
of capital.
10. Affiliation is:
a. family relation by marriage and descent up to the second degree, both
horizontally and vertically;
b. relation between 2 (two) companies in which there is 1 (one) or more
same member(s) of board of directors or board of commissioners;
c. relation between the company and another party, both directly and
indirectly, controls or is controlled by the said company;
d. relation between 2 (two) companies controlled, both directly and
indirectly, by the same party; or
2

e. relation between the company and the main shareholder.

11. A Preliminary Study Document is the document prepared by the GCA and
the preparation thereof is carried out in the Planning Phase of PPP Project
Cycle.
12. Documents of PPP Project Preparation are the documents prepared by the
GCA and the preparation thereof is carried out in the Project Preparation
Phase of PPP Project Cycle.
13. Pre- Feasibility Study is the feasibility study of the PPP Project conducted by
the GCA in the event of Cooperation (PPP) Project is on the Governments
initiative or by a Prospective Initiator in the event of PPP Project is on the
Business Entitys Initiative (unsolicited).
14. A Pre-Feasibility Study Document is the document prepared by the GCA and
the preparation thereof is carried out in the Transaction Phase of PPP
Project cycle or by the Prospective Proponent in the approval stage of
proposal of the Unsolicited PPP Project in the framework of fulfilling one of
the requirements in order to obtain an Approval Letter to conduct a
Feasibility Study from the GCA.
15. Feasibility Study is the due diligence performed by a Business Entity to
prepare a Bid Proposal Document in the implementation stage of public
tender of the business entity to carry out the PPP Project or by the
Prospective Proponent to prepare a Feasibility Study document as one of
the requirements for approval by the GCA to be designated as the Initiator of
the unsolicited project proposal..
16. A Feasibility Study document is the document prepared by the Prospective
Initiator and the preparation thereof shall be carried out in the approval stage
of an Unsolicited PPP Project proposal in order to fulfil one of the
requirements to obtain a letter of decision as an Initiator from the GCA.
17. Tender Documents are the documents prepared by the Procurement
Committee containing the elucidation of the PPP Project, tender
requirements and evaluation criteria as well as instructions that should be
adhered to by tender participants.
18. Minutes of Pre-bid Meeting(s), hereinafter referred to as the BAP, is the
minutes of elucidation pertaining to public tender containing the elucidation
of Tender Documents and other information including alteration of the
Tender Documents signed by the Procurement Committee and by minimally
1 (one) representative of the appearing tender participants, and forms one
unit inseparable of the Tender Documents.
19. Minutes of Bid Opening, hereinafter referred to as the BAPP, is the minutes
of opening the completion of the bid documents submitted by tender
participants.
20. Bid Documents are the documents containing the bids submitted by tender
participants to the Procurement Committee according to the provisions as
stipulated in the Tender Documents.
3

21. Minutes of Results of the Tender, hereinafter referred to as the BAHP, is the
minutes containing results of the public tender execution, including method
of evaluation, the formulas used, up to the determination of sequence of the
winners in the form of list of participants of the public tender.
22. Minutes of Result of Negotiation, hereinafter referred to as the BAHN, is the
minutes containing the result of negotiation carried out by the Procurement
Committeee with a single prospective bidder.
23. Foreign Legal Entity is a business entity incorporated under the law of a
country outside Indonesia.
24. A Prospective Proponent is a Business Entity in the form of limited liability,
State-owned Enterprise (BUMN), Regional-owned Enterprise (BUMD),
Foreign Legal Entity, and cooperative submitting an unsolicited PPP Project
proposal to the Government or Regional Government.
25. An Original Proponent is a Prospective Proponent who has been designated
by a GCA as the initiator of an unsolicited PPP Project proposal.
26. Environmental impact assessment, hereinafter referred to as AMDAL, is a
study pertaining to the significant impacts of a business and/or activity
planned in an environment necessarily for the process of decision making on
the undertaking of the business and/or activity.
27. Environmental Management Plans and Environmental Monitoring Plans,
hereinafter referred to as UKL-UPL, are the management and monitoring
against a business and/or activity that has no significant impact against the
environment needed for the process of decision making on the organization
of the business and/or activity.
28. Environmental Permit is a permit provided to every person performing a
business and/or activity that is AMDAL or UKL-UPL compulsory in the
framework of protecting and managing the environment as the precondition
to obtain a business licence and/or activity.
29. AMDAL Documents are the documents prepared by the Government and/or
the Regional Government and/or Business Entity and the preparation thereof
shall be started in the PPP Project Preparation Phase and completed at the
same time with the completion of Pre-Feasibility Study comprising of ANDAL
terms of reference (KA-ANDAL), environmental impact analysis (ANDAL),
and environmental management and monitoring plan (UKL and UPL).
30. Management Unit for the Implementation of PPP Contract, hereinafter
referred to as the Management Unit, is a working unit formed by the GCA to
prepare and draw up the plan as well as carry out the Implementation
Management of the PPP Contract.
31. Project Concept Documents are the documents prepared by the Prospective
Proponent of an unsolicited proposal and the preparation thereof is carried
out in the approval stage of Unsolicited PPP Project proposal in order to fulfil
one of the requirements to obtain an Approval Letter from the GCA to
conduct a Pre-Feasibility Study.
4

32. PPP Project Management Team is a task force of structural and/or functional
staff formed within a working unit of Ministryl/Non-ministerial Institution in the
central level or within some SKPD in the regional level, which has the role
and responsibility to manage a PPP Project in the Preparation and
Transaction phases covering activities of preparing an Outline Business
Case, assessment of Project Readiness and completion of the PreFeasibility Study.
D.

Phasing of PPP Project Cycle

1. The PPP Project Cycle comprises four phases:

a. Planning of PPP Project;
b. Preparation of PPP Project;
c. Transaction of PPP Project; and
d. Implementation of PPP Contract Management.
2. The PPP Project Planning Phase as referred in point 1 letter a, comprises:
a. Identification and Selection of a PPP Project
Identification and selection of a PPP Project is intended to determine a
potential infrastructure PPP project to be developed in
cooperation/partnership with a Business Entity using the approach of
need analysis, compliance criteria and value for money of the
involvement of a business entity.
b. Prioritization of PPP Project
Prioritization of PPP Project (for each respective Central and Regional
PPP Project) is intended to determine more important project to be
prioritized by considering the aspect of public needs, budget capacity,
development period and other strategic considerations.
3. Preparation of PPP Project as referred in point 1 letter b, comprises:
a. Preliminary Appraisal of Pre-Feasibility Study (the Outline Business
Case):
The purpose of preparing and developing an Outline Business Case is
to:
1) define the target and constraints of the PPP Project;
2) assess the technical option and availability of technology and
goods/services needed;
3) identify the main issues and the obstacles thereof, proposal to solve
the problems, and the form and amount of the Government Support
and/or Government Guarantee;
5

4) identify option of the best PPP modality;

5) identify the risks and mitigation efforts needed;
6) identify the implementation requirements of the PPP Project,
including the legal basis needed and the implementation of land
acquisition; and
7) draw up a commercial/business plan covering the risk allocation and
payment mechanism.
b. Assessment of PPP Project Readiness
Preparation for Assessment of Project Readiness is intended to:
1)

ensure that the concept of PPP Project obtains an approval from

the GCA and agreement from the stakeholders;

2)

ensure that the proposal of request of non-fiscal Government

Support has been submitted by the working unit of Ministry/
Institution/work unit of regional officials to the Minister/ Institutional
Head/ Regional Head if the results of Preliminary Appraisal of PreFeasibility Study indicate the need of non-fiscal Government
Support for the PPP Project;

3)

ensure that the proposal of request of the Government Support in

the form of non-financial fiscal contribution has been submitted by
the GCA to the Minister of Finance in the event the results of the
Preliminary Appraisal the Pre-Feasibility Study indicate the need of
Government Support in the form of non-financial fiscal contribution
for the PPP Project;

4)

ensure that the proposal of request of the Government Support in

the form of financial (cash) fiscal contribution has been submitted
by the GCA to the Minister of Finance in the event the results of the
Final Appraisal of the Pre-Feasibility Study (the Final Business
Case) indicate the need of Government Support in the form of
financial fiscal contribution for the PPP Project;

5)

ensure that the proposal of the Government Guarantee has been

submitted by the GCA to the BUPI, in the event the results of
Preliminary Appraisal of the Pre-Feasibility Study indicate the need
of the Government Guarantee for the PPP Project;

6)

ensure that the PPP Project Management Team has been formed
and functioning;

7)

ensure that the site preparation program (including the land

acquisition) and resettlement program have been prepared,
including the budget plan and schedule of the implementation plan
thereof have obtained an approval in accordance with the existing
laws and regulations;

8)

ensure that the plan and schedule of the environmental compliance

program have been prepared; and
6

9)

ensure that the steps to settle various legal issues have been
prepared.

4. The Transaction of PPP Project as referred in point 1 letter c, covers:

a. Completion of Pre-Feasibility Study, comprises of:
1) Final Appraisal of Pre-Feasibility Study (the Final Business Case)
Preparation of the Final Appraisal of Pre-Feasibility Study is
intended to:
a) ensure that the Project Preparation Report has obtained the
approval from the Minister/Head of Institution/Regional Head
and consent from the stakeholders;
b) update and confirm the Outline Business Case;
c) confirm the technical conformity, cooperation selection, PPP
Project readiness and market interest;
d) draw up detailed draft of output specification;
e) develop tariff structure;
f)

ensure risk allocation, implementation mechanism of

Government Support and/or Government Guarantee and
financial structure (deal structure);

g) prepare the draft of public tender plan of a Business Entity;

h) prepare the draft of provisions of PPP Contract;
i)

ensure whether the Government Support for the PPP Contract is

necessary or not needed.

2) Draft of Public Tender Plan of a Business Entity

Draft of public tender plan of a Business Entity is intended to prepare
the proposal of public tender strategy, requirements of the
institution/agency that will manage the public tender process, and
requirements to be specified in the Tender Documents.
b. Public Tender of a Business Entity comprises of:
1) planning of public tender;
2) implementation of public tender:
a) request for Expression of Interest;
b) request for Prequalification;
c) request for Bid;
d) determination of the Preferred Bidder; and
e) signing of PPP Contract.

5. The Implementation of PPP Contract Management as referred in point 1

letter d covers:
a. Planning for Implementation of PPP Contract Management; and
b. Implementation of PPP Contract Management.
Chart of the Phasing of PPP Project Development Cycle is summarized in Sub
Attachment I hereof, forming one inseparable entity of this Ministerial Regulation.
E.

Series of Activities related to the PPP Project Development Cycle

1. Series of activities related to PPP Project Development Cycle at the CentralLevel.

Series of activities from the Planning phase to the Preparation and
Transaction phases of the Central-level PPP Project up to the
Implementation of the PPP Contract Management phase shall comply to the
following sequence:
a. In the Planning Phase of the PPP Project, the head of working unit in the
Ministry/Institution shall identify, select and determine priority of the PPP
Project of sub-sector scope.
b. After completing the Planning of sub-sector scope of PPP Project, the
head of working unit in the Ministry/Institution shall submit the proposal
of the said PPP Project to the Minister/Institutional Head through the
PPP Node in the Ministry/Institution for the determination of priority of
the sub-sector scope PPP Project and to be followed up with the Public
Consultation and the completion of Preliminary Study Documents.
c. The Public Consultation as refrerred in letter b may be carried out
several times in each stage of the PPP Project.
d. The Public Consultation shall be determined by the GCA, and shall at
least discuss the following:
1) elucidation and elaboration related to the PPP Project by the GCA,
which may be assisted by consultant;
2) acceptance of response and/or input from representative of the
public which attends the Public Consultation; and
3) evaluation of the results obtained from the Public Consultation and
the implementation thereof in the PPP Project.
e. Public Consultation shall be conducted within the period of 60 (sixty)
working days commencing from the date of signing of the list of
development plan location in accordance with the laws and regulations.
f.

The PPP Project of sub-sector scope which is included in the PPP Book
of sector scope shall be re-submitted by the PPP Node in the
8

Ministry/Institution to the working unit in the Ministry/Institution to be

continued to the PPP Project Preparation Phase.
g. The Minister/Institutional Head as the GCA upon determining priority of
the sector scope PPP Project shall submit the said List of Priority of the
PPP Project including the Preliminary Study Documents to the Minister
of Planning to be proposed and registered in the PPP Book as a
Potential PPP Project.
h. The GCA shall continue the process to the next phase of PPP Project
Preparation by conducting and completing the Preliminary Appraisal of
Pre-Feasibility Study (theOutline Business Case) to be then continued
by implementing the Assessment of the Project Readiness.
i.

At the end of the PPP Project Preparation phase, the GCA produces
Documents of Project Preparation containing results of the preliminary
assessment of pre-feasibility study (the outline business case) and
assessment of project readiness.

j.

In the event the result of the Outline Business Case and the assessment
of Project Readiness are declared that the said project is not financially
feasible (after calculating the needs of the Government Support), then
the said project shall be declared not feasible as a PPP Project and shall
not proceed to the next phase of PPP Project Transaction . In that case,
the said project may be endorsed as a non PPP Project.

k. In the event the result of the Outline Business Case and the assessment
of Project Readiness Study are declared that the said project is
technically, economically and financially feasible, then the GCA may
proceed to the next phase of PPP Project Transaction for the completion
of the Pre-Feasibility Study.
l.

The GCA shall submit the List of PPP Projects having completed the
Document of the PPP Project Preparation to the Minister of Planning to
be registered in the PPP Book as a prospective PPP project.

m. The GCA shall complete Documents of the Pre-Feasibility Study

containing results of the Final Assessment of Pre-Feasibility Study (the
Final Business Case) including financial structure, draft of provisions of
the PPP Contract, and draft of the public tender plan of the Business
Entity including the public tender strategy (bid strategy) and draft of
Tender Documents.
n. Documents of the Pre-Feasibility Study shall be attached with AMDAL
Documents for the PPP Project which is required to carry out the
AMDAL or UKL-UPL forms for a PPP Project which is required to have
UKL-UPL based on the laws and regulations, as well as documents of
planning of land acquisition and resettlement.
In this phase, the GCA should have obtained:
1) Letter of Decision of Environmental Feasibility (SKKL) and
Environmental Permit for the PPP Project which is required to carry
9

out the AMDAL or recommendation of the UKL-UPL for a PPP

Project which is required to have UKL-UPL from the Minister,
Governor or Head of Region in accordance with his/her authority
based on the provisions of laws and regulations.
2) letter of designated project location from the Governor; and
3) in-principle approval to obtain the Government Support in the form of
fiscal contribution from the Minister of Finance and letter of intent for
provision of the Government Guarantee from the BUPI in
accordance with the provisions of the laws and regulations.
o. A PPP Project that already has completed the Pre-Feasibility Study
Document and obtained the principle approval of the Government
Support from the Minister of Finance shall be proposed by the GCA to
the Minister of Planning to be registered in the PPP Book as a ready-tooffer PPP Project.
p. The GCA shall prepare and carry out the public tender of the Business
Entity for the ready-to-offer PPP Project. In the event the PPP Project
needs the fiscal support to ensure the financial feasibility of the PPP
Project, the GCA shall submit the request of preliminary determination
for provision of the fiscal support to the Minister of Finance in
accordance with prevailing the laws and regulations.
q. The GCA shall continue to the next phase of the Implementation of PPP
Contract Management after the PPP Contract has been signed.
The flowchart of the complete phasing of the PPP Project Development
Cycle at the Central level is summarized in Sub Attachment II that forms one
entirety inseparable of this Ministerial Regulation.
2. Series of PPP Project Development Cycle at the Regional Level.
Series of activities from the Planning phase to the Project Preparation and
Transaction phases of developing PPP Project at the Regional level up to
the Implementation of PPP Contract Management phase shall comply to the
following sequence:
a. The TKKSD, through the PPP Node, shall make coordination and
evaluation of the projects initiated by the Regional Government Working
Unit (SKPD) in charge of the infrastructure sector.
b. Each SKPD of infrastructure sector shall identify, select and determine
the priority of the PPP Project of sub-sector/sector scope as the basis to
prepare the Preliminary Study Documents in accordance with the criteria
determined in the Planning Phase after coordinating with the sector
ministry.
c. Each SKPD shall carry out Public Consultation for the PPP Project of
which the priority has been prepared.
10

d. Public Consultation as referred in letter c may be carried out several

times in each phase of the PPP Project Cycle.
e. Public Consultation shall be determined by the GCA, and shall at least
discuss the following:
1) elucidation and elaboration related to the PPP Project by the GCA
that may be assisted by consultant; and
2) acceptance of response and/or input from the representative of
public which attends the Public Consultation event; and
3) evaluation of the result obtained from the Public Consultation and
the implementation thereof in the PPP Project.
f.

The TKKSD, through the PPP Node, shall prepare the priority of crossSKPD PPP Projects, through consultation and clarification with all
related SKPDs and the Regional Parliaments (DPRD), prepare
recommendation to the Head of Region in order to make decision
pertaining to the determination of list of priority of the Regional PPP
Project plan.

g. The SKPD-scope PPP Projects included in the list of priority of the

Regional PPP Project plan shall be re-submitted by the TKKSD, through
the PPP Node, to each SKPD to be continued to the next Phase of PPP
Project Preparation.
h. The Head of Region as the GCA shall submit the list of priority of the
Regional PPP Project plan which has been furnished with the
Preliminary Study Documents to the Minister of Planning to be proposed
and registered in the PPP Book as a Potential PPP Project.
i.

The GCA shall continue the process to the next Phase of PPP Project
Preparation by first carrying out and completing the Outline Business
Case to be followed by conducting the assessment of the PPP Project
Readiness.

j.

In the PPP Project Preparation Phase, the GCA shall produce a Project
Preparation Document which contains the results of Preliminary
Appraisal of Pre-Feasibility Study (the Outline Business Case) and
assessment of project readiness.

k. In the event the result of the Outline Business Case and assessment of
project readiness declare that the said PPP Project is not financially
feasible (after calculating the needs of the Government Support), then
the said project shall be declared not feasible as a PPP Project and the
GCA cannot continue to the next Phase of Transaction of PPP Project.
In that case, the said project shall be recommended as a non PPP
Project.
l.

In the event the result of the Outline Business Case and assessment of
Project Readiness declare that the said PPP Project is technically,
economically and financially feasible, then the GCA may proceed to the
11

completion process of the Pre-FeasibilityStudy at the PPP Project

Transaction phase.
m. The GCA shall submit the list of PPP Projects having completed the PPP
Project Preparation Document to the Minister of Planning to be proposed
and registered in the PPP Book as prospective PPP projects.
n. To finalize the Pre-Feasibility Study at the Transaction phase, the GCA
shall first conduct the Final Business Case which is primarily aimed to
prepare the financial structure in order to ensure that the PPP Project
will be successfully transacted, including to prepare the draft of
provisions of the PPP Contract.
o. The GCA shall complete the Pre-Feasibility Study Documents by
enclosing:
1) AMDAL documents (Terms of Reference, ANDAL, RKL-RPL) for a
PPP Project that is AMDAL compulsory;
2) UKL-UPL form for a PPP Project that is UKL-UPL compulsory;
3) documents of land acquisition and resettlement plan;
4) the SKKL and Environmental Permit from the Minister, Governor or
Head of Region in accordance with his/her authority for a PPP
Project that is AMDAL compulsory;
5) recommendation of UKL-UPL from the Minister, Governor or Head of
Region in accordance with his/her authority for a PPP Project that is
AMDAL compulsory;
6) letter of designated project location from the Governor; and
7) if necessary, submission of application for in-principle approval of
the Regional Government Support from the Head of Region and the
DPRD, in-principle approval of Government Support in the form of
fiscal contribution from the Minister of Finance and statement of
readiness to provide guarantee from the BUPI in accordance with
the provisions of laws and regulations.
p. A PPP Project that has completed the Pre-Feasibility Study and obtained
in-principle approval of the Regional Government Support from the Head
of Region and the DPRD having gone through the process of plenary
session, and/or in-principle approval of the Government Support in the
form of fiscal contribution from the Minister of Finance and/or statement
of readiness toprovide guarantee from the BUPI, the GCA may continue
to the process of public tender of the Business Entity.
q. A PPP Project which has already produced a Pre-Feasibility Study
Document and obtained in-principle approval of the Government
Support, shall be proposed by the GCA to the Minister of Planning to be
registered in the PPP Book as a ready-to-offer PPP project.
r.

Subsequently, the GCA shall prepare the planning and implementation

of the Business Entitys public tender. In the event the PPP Project
12

requires fiscal support from the Minister of Finance, the GCA shall
submit a request for the initial approval of provision of the fiscal support
(in terms of a viability gap support) to the Minister of Finance in
accordance with the prevailing laws and regulations.
s. The GCA shall continue to the next phase of the Implementation PPP
Contract Management after the PPP Contract has been signed.
The flowchart of the complete cycle of PPP Project Development at the
regional level is summarized in Sub Attachment III forming one entirety
inseparable of this Ministerial Regulation.
3. Supporting Activities of Implementation of PPP Project
a. In carrying out the four-phase of PPP Project cycle, the GCA shall at the
same time conduct supporting activities to the implementation process of
PPP Project development.
b. The supporting activities referred to above include the followings but not
limited to:
1) The planning as well as implementation activities of land acquisition
and resettlement;
2) The environmental impact asseessment; and
3) The request for the provision of Government Support and/or
Government Guarantee.
c. The GCA may conduct planning and implementation activities of land
acquisition and resettlement since the Planning Phase of PPP Project
cycle by performing a preliminary identification and requirement of land,
to be then followed by the process of producing a document of land
acquisition plan at the PPP Project Preparation phase and the process
to obtain a designated project location from the Governor.
d. The GCA shall carry out the land acquisition, including resettlement
planning, in compliance with the provisions of laws and regulations that
regulate land acquisition for development for public interests.
e. The GCA may carry out activities of environmental study since the
Planning phase by conducting a screening process whether the project
requires AMDAL or UKL-UPL compulsory, and prepare the terms of
reference for procurement of AMDAL consultant for projects that are
AMDAL compulsory.
f.

For projects of AMDAL compulsory, environmental study in the Project

Preparation phase shall be carried out in compliance with the AMDAL
mechanism based on the laws and regulations of the environmental
protection and management. AMDAL documents produced shall be
used as the basis of evaluation and issuance of the SKKL and
Environmental Permit from the Minister, Governor or Regional Head.
13

g. For projects of UKL-UPL compulsory, the GCA shall only fill in the UKLUPL form which becomes the basis of issuance of recommendation from
the Minister, Governor or Regional Head.
h. The GCA may indicate the need for Government Support and/or
Government Guarantee since the Planning phase by identifying the
initial requirements of the Government Support and/or Government
Guarantee.
i.

The GCA shall determine the form and more quantifiable amount of the
Government Support in the Outline Business Case. For the Government
Support in the form of fiscal support (viability gap funding), the GCA shall
submit fiscal support request to the Minister of Finance according to the
prevailing laws and regulations.

j.

The Government Support in the form of fiscal support (viability gap

funding) shall only be provided to the PPP Project that has already
registered as the ready-to-offer PPP project category of the PPP Book
and the in-principle approval of provision of the said fiscal support
(viability gap funding) shall be explicitly incorporated to the Public
Tender Documents. The amount of fiscal (viability gap) support shall be
used as one of the bid parameters.

k. In the event the PPP Project is declared economically and financially

feasible and requires the Government Guarantee, then the GCA may
request the BUPI to obtain a statement of guarantee readiness. If the
result of due diligence conducted by the BUPI indicates good financial
structure, the BUPI may issue an in-principle approval at the time of
finalization process of bid documents.
The figure of the complete cycle of PPP Project development with the key
supporting activities is summarized in Sub Attachment IV constituting one
entirity and inseparable part of this Ministerial Regulation.
4. Consultants Tasks in the Implementation of PPP Project:
a. In respect to the Implementation of PPP Project, the consultant is in
charge of among others:
1) supporting the GCA in
infrastructure necessity;

collecting

information

pertaining

to

2) providing inputs to the GCA pertaining to the creation of project

profile after the GCA identified the project;
3) providing inputs and assisting the GCA in preparing documents
related to environmental and social analysis;
4) assisting the GCA in preparing the Preliminary Appraisal of PreFeasibility Study
(the Outline Business Case) and Project
Readiness assessment of the PPP Project Preparation phase;
14

5) providing inputs to the GCA among others pertaining to financial

analysis, need analysis, technical analysis and others required to
ensure that the PPP Project is being well prepared;
6) assisting the GCA in updating the Outline Business Case to be
finalized as the Final Business Case and in finishing the PreFeasibility Study Document;
7) assisting the GCA in preparing the draft of PPP Contract;
8) providing advisory support to the Procurement Committee at the
Transaction phase, including achieving the deal structure.
b. In respect to the preparation of AMDAL, the consultant which assists the
GCA (either individual or institutional AMDAL consultant) shall have
possession of a certification of competency and be registered in the
Ministry of Environment.
5. Costs associated with PPP Project Development Cycle.
a. The costs arising from developing PPP Project for pproject preparation
and transaction including the implementation of Procurement of
Business Entity may be imposed to the tender winner.
b. The arising costs as intended in letter a above covers:
1) costs for preparing the Pre-Feasibility Study and/or Transaction of
PPP Project until the financial close is achieved; and
2) a reasonable fee for the institution assigned by the Government to
carry out consulting and advisory services for the GCA.
c. The reasonable fee as intended in letter b point 2) may be provided
through the success fee mechanism.
d. The amount of reasonable fee shall be determined under the agreement
between the related agency/institution with the GCA.
e. The amount of costs charged to the tender winner shall be specified in
the Tender Documents.
F.

Related Regulations

1.

Law Number 36 of 1999 on Telecommunication.

2.

Law Number 22 of 2001 on Natural Oil and Gas.

3.

Law Number 7 of 2004 on Water Resources.

4.

Law Number 25 of 2004 on National Development Planning System.

5.

Law Number 38 of 2004 on Roads.

6.

Law Number 23 of 2007 on Railways.

7.

Law Number 25 of 2007 on Investment.

8.

Law Number 17 of 2008 on Shipping.

9.

Law Number 18 of 2008 on Waste Management.

15

10. Law Number 26 of 2007 on Spatial Planning.

11. Law Number 1 of 2009 on Aviation.
12. Law Number 30 of 2009 on Electricity.
13. Law Number 32 of 2009 on Environmental Protection and Management.
14. Law Number 2 of 2012 on Land Acquisition for Development for Public
Interests.
15. Government Regulation Number 20 of 2004 on Government Work Plan.
16. Government Regulation Number 15 of 2005 on Toll Road as amended by
Government Regulation Number 44 of 2009.
17. Government Regulation Number 16 of 2005 on Development of Drinking
Water Supply System.
18. Government Regulation Number 6 of 2006 on Management of
State/Regional Assets as amended by Government Regulation Number 38
of 2008.
19. Government Regulation Number 40 of 2006 on Procedures of National
Development Plan Preparation.
20. Government Regulation Number 50 of
Implementation of Regional Cooperation.

2007

on

Procedures

of

21. Government Regulation Number 1 of 2008 on Government Investment.

22. Government Regulation Number 26 of 2008 on National Spatial Plan.
23. Government Regulation Number 56 of 2009 on the Conduct of Railway
Business.
24. Government Regulation Number 61 of 2009 on Harbour.
25. Government Regulation Number 72 of 2009 on Traffic and Railway
Transportation.
26. Government Regulation Number 27 of 2012 on Environmental Permit.
27. Government Regulation Number 14 of 2012 on Electricity Supply Business
Activities.
28. Government Regulation Number 40 of 2012 on Development and
Preservation of Airport Environment.
29. Regulation of the President Number 67 of 2005 on Public-Private
Partnerships the Provision of Infrastructure as having been amended
several times last by Regulation of the President Number 56 of 2011.
30. Regulation of the President Number 82 of 2007 on National Development
Planning Agency.
31. Regulation of the President Number 47 of 2009 on Formation and
Organization of State Ministry.
16

32. Regulation of the President Number 24 of 2010 on Position, Tasks and

Functions of the State Ministry and Organization Structure, Tasks and
Function of Echelon I.
33. Regulation of the President Number 5 of 2010 on National Mid-Term
Development Plan of 2010-2014.
34. Regulation of the President Number 78 of 2010 on Infrastructure
Guarantee for Cooperation Project between the Government and Business
Entity carried out through Infrastructure Security Business Entity.
35. Regulation of the State Minister of Environmental Number 11 of 2006 on
Business Plan and/or Activities that shall be completed with Analysis On
Environmental Impacts.
36. Regulation of the State Minister of National Development Planning/Head of
National Development Planning Agency Number PER.005/M.PPN/10/2007
on Organization and Work Procedures of the State Ministry of National
Development Planning/National Development Planning Agency.
37. Regulation of the State Minister of Environmental Number 5 of 2008 on
Work Procedures of Analysis Assessor Commission On Environmental
Impacts.
38. Regulation of the Minister of Home Affairs Number 22 of 2009 on Technical
Guidelines of Regional Cooperation Work Procedures.
39. Regulation of the Minister of Finance Number 260/PMK.011 of 2010 on
Guidelines of Implementation of Infrastructure Guarantee for PPP projects
in the Provision of Infrastructure.
40. Regulation of the State Minister of Environmental Number 7 of 2010 on
Certification of Competency of AMDAL Document Maker and LPKs
requirements of AMDAL Document Maker.

17

CHAPTER II
THE PROJECT PLANNING PHASE OF THE PPP PROJECT
CYCLE
A.

General Provisions

1.

The Planning Phase of the PPP Project Cycle is intended to:

a. obtain clear and accurate picture pertaining to whether or not it is
necessary that the development of some infrastructure, conformity of
the PPP Project with the National Mid-Term Development Plan,
Government Work Plan, Strategic Plan and Work Plan of Ministry/
Institution, and/or Regional Mid-Term Development Plan and Regional
Government Work Plan, in accordance with the laws and regulations,
and the feasibility of a project to be cooperated with a Business Entity;
b. support the coordination of planning and development of the PPP
Project plan as well as to provide transparent information to the public
concerning the plan of the PPP Project.

2.

The Planning Phase of the PPP Project Cycle comprises of process of

identification and selection of the PPP Project as well as determination of
the PPP Project priority.

3.

The process of identification and selection of the PPP Project as intended

in point 2 shall be conducted to provide description regarding the need to
build some certain infrastructure to be made compatible with the
Government work plan as well as the benefit thereof if it is cooperated with
a Business Entity.

4.

Determination of the PPP Project priority as intended in point 2 shall be

carried out by considering the aspect of public needs, budget, development
period and other supporting aspects.

5.

Identification and selection of the PPP Project as well as determination of

the PPP Project priority are used as the basis by the GCA to prepare a
Preliminary Study Document and terms of reference for the procurement of
consultant for a PPP Project Preparation, if necessary.

6.

In the event the PPP Project requires AMDAL, the GCA shall include
activities of study related to environment within the terms of reference for
the procurement of consultant for the preparation of PPP Project. In
preparation of the AMDAL documents, the GCA may use the service of a
competence certified AMDAL maker, both individual and AMDAL
consultant institution registered in the Ministry of Environment.

7.

In the Planning Phase of PPP Project Cycle, the GCA should have already
started to carry out identification of land requirement and availability
needed in the framework of carrying out the project as well as initial
identification of the need of Support and/ or Guarantee from the
18

Government and activities of environmental study in accordance with the

laws and regulations.
B.

Identification and Selection of PPP Project

1.

Identification and selection of potential PPP Project to be cooperated with

Business Entity:
a. the PPP Project initiated by the Central Government shall be
conducted by the head of working unit of the GCA authorized on the
PPP Project, namely the Director General/ Institutional Head or
President Director of the BUMN in the event being given the authority
based on the laws and regulations.
b. as to a PPP Project initiated by the Regional Government, it shall be
carried out by the Provincial/Local Government Working Unit (SKPD).

2.

The process of identification and selection of PPP Project as intended in

point 1 shall be carried out through a screening process using the approach
of:
a. need analysis;
b. compliance analysis; and
c. decisive factors
involvement.

3.

criteria

of

the

advantage

of

business-entity

Indicators of Need Analysis as intended in point 2 letter a, include:

a. consistency that the PPP Project is included in the government
development plan and program;
b. certainty that the PPP Project has the technical and economic
reasoning basis;
c. dependability that the PPP Project obtains the support from the related
stakeholders; and
d. predictability that the PPP Project has continuous demand measured
from inadequacy of service, both the quantity and quality as well as the
communitys ability to pay.

4.

Compliance Criteria as intended in letter 2 letter b, include:

a. the compliance of the PPP Project with the national/ regional mid-term
development plan and the infrastructure sector strategic plan;
b. the compliance of the PPP Project location with the Spatial Planning;
and
c. the inter-linkages across infrastructure sector and across regions.

5.

The Decisive Factors Criteria of the Advantage of Business Entitys

involvement as intended in point 2 letter c, include:
19

a. investment value that needs effective risk management;

b. private sector that owns superiority in the Implementation of PPP
Project;
c. ensuring the effectiveness, equity, and accountability of service in the
long term;
d. technology and other aspects in the related sector that are stable and
adaptive to changes; and
e. availability of attractive incentives for the private sector.
C.

Prioritization of PPP Projects

1.

After identifying and selecting the PPP Project, the GCA shall determine
the priority of the PPP Projects.

2.

Prioritization of the PPP Projects as intended in point 1 shall use the MultiCriteria Analysis (AMK) method.

3.

The AMK Criteria shall at least include:

a. clarity of description of the PPP Project;
b. obstacles to gain access to the main resources for the Implementation
of PPP Project;
c. clarity of the result of the PPP Project inputs;
d. social and environmental impacts that are able to be managed and
controlled;
e. continuous potential demand;
f.

potential of facility of land acquisition and resettlement;

g. level of governments ability to give the government support;

h. institutional aspect readiness; and
i.
4.

the inclusion of PPP Project in strategic priority and/ or government

planning;

For the PPP Project initiated by the Central Government, the GCA shall
determine priority by complying the following sequence:
a. The head of work unit of the Ministry/ Institution or the President
Director of the BUMN, as the responsible working unit of the GCA
authorised for the PPP Project, shall determine priority of the proposed
PPP Projects of the respective sub-sector.
b. The head of work unit of the Ministry/ Institution or the President
Director of the BUMN as intended in paragraph 1, shall submit the list
of priority of the proposed PPP Projects of the respective sector to the
Minister/ Head of Institution through the PPP Node.
20

c. The PPP Node shall evaluate the prioritization of the proposed PPP
Projects of all sub-sectors in its ministry and shall recommend the
priority of the proposed PPP Projects within its ministry scope..
d. The PPP Node shall submit the recommended prioritization of the
proposed ministerial PPP Projects to the respective Minister/ Head of
Institution.
e. The Minister/ Head of Institution shall make final decision on the list of
priority of its respective ministerial PPP Projects.
f.

The Minister/ Head of Institution shall submit the list of priority of its
respective ministerial PPP Projects plan to the Minister of Planning
enclosed with the related complete documents.

g. The Minister of Planning shall evaluate the list of priority of the

ministerial PPP Projects plan including the related complete documents
in accordance to the prevailing laws and regulations.
h. The Minister of Planning based on the result of evaluation of the list of
priority of the ministerial PPP Projects plan shall determine the
appropriate category status of each PPP project to be registered in the
List of Infrastructure Project Plan (the PPP Book).
5.

For the PPP Project initiated by the Regional (Provincial/Local)

Government, the GCA shall determine the priority by being consistent with
the following sequence:
a. The head of SKPD as responsible working unit in infrastructure sector
of the GCA authorized for the PPP Project, shall ascertain the
prioritization of the proposed PPP Projects of its respective SKPD
scope, after coordinating with the related ministry.
b. The head of SKPD as intended in letter a, shall submit the list of priority
of the proposed PPP Project plan of the related SKPD scope to the
Head of Region through the TKKSD.
c. The TKKSD, through the PPP Node, shall evaluate the cross SKPD
prioritization of the proposed PPP Projects and shall recommend
priority of its proposed regional PPP Projects.
d. The TKKSD shall submit the recommended prioritization of the
proposed cross-SKPD PPP Projects to the Head of Region as the list
of priority of its regional PPP Projects plan.
e. The Head of Region shall make the final decision for the list of priority
of its regional PPP Projects plan.
f.

The Head of Region as the GCA shall submit the list of priority of its
regional PPP Projects plan to the Minister of Planning.

g. The Head of Region shall report to the minister of the related sector
regarding the list of priority of their respective regional PPP Projects
plan.
21

h. The Minister of Planning shall evaluate the list of priority of the regional
PPP Projects plan in accordance to the prevailing laws and regulations.
i.

The Minister of Planning shall determine the appropriate category

status of each project to be registered in the PPP Book based on the
results of evaluation on the list of priority of the regional PPP Projects
plan.

D.

Decision Making for Go or Not Go of the proposed PPP Project to

proceed to the Project Preparation Phase of the PPP Project Cycle

1.

From the results of evaluation of the Preliminary Study, a PPP Project is

declared not fulfilling the requirements as a project priority for PPP if it does
not fulfil the requirements of the need analysis, compliance criteria,
decisive factors criteria of the advantage of business entitys involvement
as well as earning a low score from the multi criteria analysis (the MCA).

2.

A PPP Project which has fulfilled the requirements as a priority project for
PPP shall be entered into the List of Project Priority and shall proceed to
the next phase of Project Preparation.

E.

Supporting Activities During Project Planning Phase

1.

Activities related to environmental study

a. In the event consultant assistance is needed, the GCA shall prepare
the terms of reference for consultant procurement.
b. Consultant as intended in letter a is in charge of:
1) preparation of AMDAL documents, comprising of Terms of
Reference, Andal, and RKL-RPL for the PPP Project that requires
AMDAL; and
2) filling in the UKL-UPL form for the PPP Project that requires UKLUPL.
c. Consultant as intended in letter a shall have a certification of
competency as the maker of the AMDAL documents and is registered
in the Ministry of Environment.
d. Criteria of the PPP Project that requires AMDAL and/or UKL-UPL is
regulated in the laws and regulations related to environment.

2.

Activities related to land acquisition.

The GCA shall carry out activities of land acquisition study comprising of:
a. identification of location and land-extent estimate needed for the PPP
Project;

22

b. initial estimate of the costs needed to clear the required land as well as
screening pertaining to whether or not resettlement plan is necessary in
accordance with the laws and regulations; and
c. preparation of plan and schedule to carry out the program of land
acquisition and resettlement.
3.

Activities related to the need of the Government Support and/or

Government Guarantee.
The GCA shall carry out activities of study of the need of the Government
Support and/or Government Guarantee, comprising of:
a. initial identification of the need of the Government Support and the
documents required in order to obtain an approval; and
b. initial identification of the need of the Government Guarantee and the
documents required in order to obtain an approval.

F.

Documents Generated in Project Planning Phase

1.

The documents that should be prepared in the Planning Phase of PPP

Project development are:
a. A Preliminary Study document; and
b. Terms of reference for procurement of consultant, if a consultancy
service is needed in this stage.

2.

The Document of Preliminary Study as intended in point 1 letter a, shall at

least includes:
a. background of the PPP Project;
b. description of the PPP Project, covering at least the legal basis,
present condition of the PPP Project, and problems of infrastructure
needs;
c. benefits of the PPP Project, covering at least concept of the PPP
Project, potential to be cooperated, indication of technical feasibility,
indication of economic feasibility, potential of obstacles and
environment, result of public consultation and project management
needs;
d. scope of work and method of procurement selection; and
e. preliminary identification of project location and the need of land size.

3.

Terms of reference for procurement of consultant as intended in point 1

letter b, shall at least includes:
a. background and description of the project;
b. scope of consultation service to carry out various feasibility studies
needed/required;
c. number of personnel and qualification needed;
23

d. documents to be prepared and delivered;

e. implementation schedule; and
f.

costs estimation.

24

CHAPTER III
THE PROJECT PREPARATION PHASE OF THE PPP PROJECT CYCLE
A.

General Provisions

1.

The GCA shall carry out the Preparation of PPP Project after identifying,
selecting and determining the PPP Project priority.

2.

The Preparation of PPP Project referred to in number 1 is intended to

ensure that the GCA has the capacity and ability to carry out the PPP
Project, transfer of risks from the GCA to the Business Entity upon
thorough study, and provide benefits for the public.

3.

The PPP Project Preparation Phase comprises of:

a. Preparation of the Preliminary Appraisal of Pre- Feasibility Study or
developing the Outline Business Case, is aimed to:
1) determine the target and obstacles of the PPP Project;
2) study the technical option and the availability of technology and
goods/ services needed;
3) determine various main problems and the obstacles thereof,
proposal to overcome problems as well as the form and amount of
the Government Support and/or Government Guarantee;
4) identify the choice of the best modality;
5) preparation of the commercial plan covering the preliminary draft of
the term sheets of the PPP Contract, risk allocation and payment
mechanism;
6) determine the risks and mitigation efforts needed; and
7) determine the requirements of the PPP Project implementation,
including the legal basis needed in relation to the land acquisition
and resettlement.
b. Preparation of the assessment of Project Readiness, is aimed to
ensure that:
1) the concept of the PPP Project obtains an approval from the
stakeholders;
2) the proposed request of Government Support has been submitted
by the GCA to the Minister/ Head of Institution/ Head of Region
and/or Minister of Finance if the result of the Outline Business
Case indicates the needs for Government Support for the PPP
Project;
3) the proposed request of Government Guarantee has been
submitted by the GCA to the Minister of Finance/BUPI, if the result
of the the Outline Business Case indicates the needs for
Government Guarantee for the PPP Project;
25

4) the PPP Project Management Team has been formed and

functioning;
5) the plan and schedule of the site preparation program (including
the land acquisition) and resettlement program have been
prepared, including the draft of budget plan and the implementation
schedule thereof have been proposed in the RKP/RKPD, the plan
and schedule of the environmental compliance program have been
prepared; and
6) steps to settle various legal problems have been prepared.
4.

The Outline Business Case and assessment of Project Readiness already

prepared shall be used as the basis by GCA to prepare the Document of
the PPP Project Preparation.

5.

In addition to preparation of the Document of the PPP Project Preparation,

the GCA shall conduct several other supporting activities such as
completion of preparation of the AMDAL Documents or filling the UKL-UPL
forms as well as the preparation of documents of land acquisition and
resettlement plan.

6.

The costs arising in the preparation of the Preliminary Appraisal of PreFeasibility Study and assessment off Project Readiness Study may be
imposed to the tender winner by the GCA. In the event the costs referred
to is imposed to the tender winner, then the tender winner may calculate
the charge as one of the cost components of the PPP total project costs.

B.

Preparation of the
Documents

1.

The preparation for the Preliminary Appraisal of Pre-Feasibility Study (the

Outline Business Case) shall be conducted by the GCA.

Preliminary Appraisal of Pre-Feasibility Study

The Preliminary Appraisal of Pre-Feasibility Study as referred in number 1

comprises of:
a. Legal and Institutional Study;
b. Technical Study;
c. Project Feasibility Study;
d. Environmental and Social Study;
e. Study of Cooperation Form in Infrastructure Provision; and
f.
3.

Study of the Needs for Government Support and/or Government

Guarantee.

Legal and Institutional Study as referred in number 2 letter a, comprises of:

a. Legal and Institutional Study covers:
1) Analysis of laws and regulations; and
26

2) Institutional analysis.
b. Analysis of Laws and Regulations referred in letter a number 1) is
conducted with the purpose to:
1) ensure that the PPP Project is carried out according to the laws
and regulations;
2) determine the legal risks and mitigation strategy thereof;
3) examine the possibility of improving the laws and regulations, or to
issue new laws and regulations;
4) prepare the plan and schedule to overcome the problems of
regulations and law;
5) determine type of permit/ agreement required; and
6) ensure that the PPP Project is carried out in accordance with the
laws and regulations, among others those related to:
a) the establishment of Business Entity;
b) investment;
c) business competition;
d) environment;
e) work safety;
f)

land acquisition;

g) funding of PPP Project;

h) permits of PPP Project;
i)

tariff mechanism and the adjustment thereof;

j)

taxation; and

k) other related regulations.

c. Institutional Analysis as referred in letter a number 2) shall be
conducted under following the steps:
1) ensure the GCAs authority in carrying out the PPP Project;
2) determine the role and responsibility of the institutions related to
the implementation of the PPP Project;
3) determine the role and responsibility of the PPP Project
Management Team, and the reporting system;
4) determine and prepare the institutional regulation officials; and
5) determine the framework of decision making.
4.

Technical Study as referred in number 2 letter b, comprises of:

a. Technical Study covering:
27

1) Technical Analysis;
2) Site Enablement;
3) Basic Engineering Design;
4) Scope of Cooperation Design; and
5) Output Specification.
b. Technical Analysis referred to in letter a number 1) is intended to:
1) determine
needed;

the

operational

technical

performance

standards

2) prepare analysis of project added value determination;

3) consider various site alternatives, project
technology and time of implementation;

amount,

quality,

4) determine the output capacity needed and the operational

standard, as well as to prepare basic engineering design that is
technically appropriate;
5) identify and asses the State and/or Region Owned Assets needed
and to prepare the list of State and/or Region Owned Assets to be
used for the PPP Project;
6) identify the requirements and availability of inputs at least covering
the staff, raw materials, services, and access to the site;
7) determine the basis of projects costs estimation;
8) estimate and determine the revenue, capital costs, operational
costs and maintenance of various scenarios;
9) prepare the funding plan to be adjustable to the construction
schedule, operational estimate and maintenance, as well
estimation of continuous cycle costs of the project; and
10) identify the Minimum Service Standard for various scenarios.
c. The Site Enablement as referred in letter a number 2) shall be carried
out by considering:
1) conformity of the site with the regional spatial plan;
2) conformity of the site with the operational needs and raw materials;
3) availability of services and raw materials;
4) confirmation of land ownership and existing hindrances;
5) cost estimate of land acquisition with various scenarios; and
6) plan and schedule of implementation of land acquisition and
resettlement program.

28

d. Basic Engineering Design as referred in letter a number 3), containing

the basic engineering design of the PPP Project that is adjusted to the
needs and characteristics of each sector;
e. Scope of the PPP Project as referred in letter a number 4) shall be
determined by:
1) determining the project site and assumption of the project costs
proposed:
2) determining the outputs to be produced by the project, among
others:
a) main users and benefits obtained;
b) output specifications; and
c) tariff and payment structure.
3) Determining the main performance indicators for outputs and
minimum standard to be achieved; and
4) Determining procedures of arrangement, monitoring and control of
the PPP Contract.
f.

Output Specifications as referred in letter a number 5) includes:

1) minimum standards of quality and availability;
2) optimum service network;
3) tariff structure, service payment and penalty;
4) indicative schedule for civil works and equipment;
5) site and obstacles in construction implementation;
6) access requirements and service benefits;
7) compliance requirements on environmental and safety problems;
8) requirements of transfer of assets according to the PPP Contract;
9) Key Performance Indicators; and
10) monitoring arrangement, in each stage of:
a) construction;
b) commercial operation; and
c) expiration of the PPP Project.

5.

The Project Feasibility Study as referred in number 2 letter c, covers the

following substances:
a. The Project Feasibility Study that includes:
1) Social Benefit Cost Analysis (SCBA);
2) Market Analysis;
29

3) Financial Analysis;
4) Risk Analysis; and
5) Analysis of the Tariff Structure.
b. The SCBA as referred in letter a number 1) shall be carried out by
fulfilling the provisions below:
1) The SCBA is aimed to ensure the social benefit and economic
sustainability of a project related to the effectiveness, timeliness,
fund use and public resources during the project period.
2) The SCBA is carried using the following approaches:
a) cost ratio between the presence of the PPP Project and the
absence the PPP Project;
b) The costs referred to in letter a) cover:
(1) costs of the PPP Project development;
(2) investment costs;
(3) operational costs;
(4) annual maintenance costs;
(5) replacement costs/periodical maintenance costs; and
(6) costs of losses on environmental and social impacts in
which the said cost calculation is based on constant prices.
c) determination of economic benefit is done by converting the
financial price into the economic (shadow price) for each inputs
and outputs based on the appropriate economic conversion
factors;
d) evaluation/ measurement of the project benefit impacts to the
community and country:
e) parameter of economic feasibility evaluation shall be carried
out through EIRR and ENPV approaches using the economic
or social discount rate; and
f)

sensitivity analysis to study the effect of uncertainty of the

Implementation of PPP Project to the project economic
feasibility level.

3) The SCBAs results may be used as indicators to measure the

value of money benefit equal to the NPV maximum and other
benefits that cannot be quantified.
c. The Market Analysis as referred in letter a number 2) shall be carried
out by fulfilling the provisions below:
1) The Market Analysis is aimed to obtain an accurate description
such as the estimate needs of user, the users ability to pay, and
30

level of services to be provided, related to the presence of interest

from the investor to develop the PPP Project.
2) The Market Analysis is carried out by:
a) determining the level of services expected;
b) surveying the real demand to assess the estimate of
willingness and ability to pay from users, standard of services
needed, and payment performance;
c) determining resources and growth level of demand using
various scenarios;
d) probing of interests of the prospective investors to the PPP
Project;
e) assessing the response of prospective investor to the risks of
project as well as the minimum level of the Government
Support and/or the Government Guarantee needed;
f)

assessing the response of the national and international

financial institutions and/or other institutions to determine the
credit volume that may be allocated in the PPP Project; and

g) determining the strategic option to reduce the market risks.

d. Financial Analysis as referred in letter a number 3) shall be carried out
by fulfilling the provisions below:
1) Financial Analysis is aimed to determine the financial feasibility of a
PPP Project that is conducted based on the outputs from:
a) the macro economic analysis (exchange rate, inflation, and
interest rate);
b) the market analysis on the goods and services produced;
c) the investment cost analysis comprising of the project costs,
interest assumption and escalation; and
d) calculation of all costs of resettlement, environmental
maintenance, permits, and indirect costs (management
overhead costs).
2) Financial Analysis shall be conducted by:
a) determining the level of Financial Internal Rate of Return
(FIRR) in the PPP Project;
b) determining the level of capital costs (Weighted Average Cost
of Capital WACC) by calculating the weighted average cost of
capital to evaluate whether the said cost of capital is
competitive;
c) determining the Debt Service Coverage Ratio (DSCR) by
calculating the amount of cash available to pay obligations
(loan principal and interest) that will mature in the current year;
31

d) determining the amount of Return On Equity (ROE);

e) ensuring that the projects cash flow has included the costs of
risk mitigation;
f)

ensuring that the projects cash flow is adjusted to the level of

revenue, operational costs, tax after depreciation, and capital
expenditure;

g) presenting various scenarios of financial analysis in rupiah or

foreign currency of which the value is equated with the rupiah;
and
h) determining the form and amount of the Government Support
and/or the Government Guarantee.
e. Risk Analysis as referred in letter a number 4) shall be carried out by
fulfilling the following provisions:
1) Risk analysis is aimed to identify the risks and to allocate them to
the party mostly capable to overcome them.
2) Risk analysis is conducted by:
a) identifying the risks against:
(1) site availability;
(2) repatriation of profit;
(3) infrastructure construction and operation;
(4) commercial feasibility of infrastructure;
(5) laws and regulations;
(6) supply of raw materials; and
(7) rights on track lane of the PPP Project (according to each
sector).
b) determining the risk allocation based on the type of
infrastructure and costs that may incur from the Government
Support and/or the Government Guarantee; and
c) determining the risk mitigation based on the amount of risks
borne by the government or Business Entity;
f.

Analysis of Tariff Structure as referred to in letter a number 5) shall be

carried out by fulfilling the following provisions:
1) reviewing the tariff determination policy, the adjustment
mechanism, the benchmark to make adjustment to the parameters
used;
2) determining the mechanism of tariff structure, adjustment, and
determination of tariff payment for a Business Entity;

32

3) determining procedures and responsibilities for a review and

adjustment of tariff during the period of the PPP Contract;
4) determining the amount of royalty payment, if Intellectual Property
Rights exist;
5) determining the terms and conditions of the contract and revenue
sharing agreement between the Business Entity and the GCA in
case:
a) cost overrun of the PPP Project value takes place;
b) development of the PPP Project is completed early; and
c) return of the PPP Project is in excess of the maximum level
determined, so that it is possible to apply the profit share
additional mechanism (claw-back mechanism).
6) Environmental and Social Study
a. Environmental and Social Study as referred in number 2 letter
d, includes:
1) The environmental study for the PPP Project that is
AMDAL compulsory or UKL-UPL compulsory;
2) Social analysis; and
3) Land Acquisition and Resettlement Action Plan.
b. Environmental Study for the PPP Project that is AMDAL
compulsory as referred in letter a number 1), shall be carried
out by adhering to the following provisions:
1) Conducting Preliminary Analysis of Environmental Impacts
(Initial Environmental Examination or IEE) with the purpose
to:
a) determine the environmental characteristics and the
impacts that would arise from the PPP Project;
b) determine the classification of the PPP Project in
estimating the impacts that would be resulted to the
environment in accordance with the prevailing laws and
regulations;
c) determine the enhancement of capacity and training
program in order to carry out the environmental
protection if necessary;
d) estimate the costs incurred to obtain the permits
needed in relation to the environment; and
e) prepare the plan and schedule to conduct the
environmental compliance program and to make record
for the environmental approval.
33

2) The IEE is used as the basis of consideration to prepare

the Terms of Reference of the Environmental Impact
Analysis (KA-ANDAL).
3) The procedures to conduct an environmental impact study
shall be carried out in accordance with the provisions of
laws and regulations in the environmental sector.
4) The GCA shall be responsible to prepare the AMDAL
Documents for the PPP Project comprising of the
documents of KA-ANDAL, ANDAL, and RKL-RPL as the
basis of evaluation for environmental permits from the
Minister/ Regional Head in accordance with his/her
authority.
c. Environmental Study for the PPP Project that is compulsory to
have the UKL-UPL as referred in letter a number 1), shall be
carried out in accordance with the following provisions:
1) fill in the forms covering:
a) identities of the initiator, namely the GCA or business
entity of the Prospective Initiator;
b) Business and/or activities Plan;
c) environmental impacts that may take place; and
d) program of
environment.

management

and

monitoring

of

2) the forms as referred in number 1 shall be submitted to:

a) Regent/Mayor, for the PPP Project located in 1 (one)
regency/ city and in marine area at the furthest 1/3 (one
third) of the marine area of the provincial authority;
b) The Governor, for the PPP Project located in more than
1 (one) regency/ city area within 1 (one) province; in
the cross regent/ city; and/or in the marine area at the
furthest 12 (twelve) miles from the coastline towards
the open sea and/ or towards the archipelagic waters;
c) The Minister, for the PPP Project located in more than
1 (one) provincial area; in the area of the Unitary State
of the Republic of Indonesia that is still in dispute with
another country; in the marine area of more than 12
(twelve) nautical miles measured from the coastline
towards the open sea; and/ or in the cross-border of
the Unitary State of the Republic of Indonesia with
another country.
3) The responsible Minister/ Governor/ Regent/ Mayor, upon
examining and declaring that there is no shortage of the
data filled in, shall issue a recommendation that shall then
34

be submitted to the authorised official as the basis for

issuing a permit to conduct the business or activities in
accordance with the laws and regulations in the
environmental sector.
d. Social Analysis as referred in letter a number 2) is needed for:
1) determining the social impacts of the PPP Project to the
community and preparing the mitigation plan thereof;
2) determining the institution responsible for the land
acquisition and resettlement;
3) determining the parties to be subject to the impacts of the
project and the compensation to be given if necessary;
4) estimating the institutions capacity to pay the
compensation and implement the resettlement plan if
necessary;
5) determining the training plan in order to carry out the social
protection program to increase the capacity of the
community subject to the impacts.
e. The Land Acquisition and Resettlement Action Plan as referred
in letter a number 3) shall observe the following provisions:
1) to be carried out by first preparing documents for the land
acquisition plan.
2) the GCA shall be responsible to prepare documents for the
land acquisition plan that constitutes the requirements to
obtain a determination letter of location from the Governor.
3) the Environmental Permit is needed to obtain a
determination letter of location from the Governor, in
addition to the documents of the land acquisition plan.
4) the resettlement plan, which constitutes the part of the land
acquisition plan, shall be prepared based on the laws and
regulations.
7) Review of the Cooperation Forms (Modalities) in the Provision of
Infrastructure
Review of the Cooperation Form in the Provision of Infrastructure
as referred in number 2 letter e, shall adhere to the following
provisions:
a. the basic characteristics of the cooperation form shall reflect
the risk allocation, the party responsible for funding, and status
of the cooperation assets management;
b. the forms of cooperation put forward are among others:
1) build-own-operate-transfer;
35

2) build-operate-transfer;
3) build-transfer-operate;
4) rehabilitate-operate-transfer;
5) develop-operate-transfer; and
6) other forms of cooperation.
c. Selection of form of cooperation shall be made by considering
the following factors:
1) assurance of availability of infrastructure in timely manner;
2) optimization of investment by Business Entity;
3) maximization of efficiency expected from the business
undertaking of infrastructure by Business Entity;
4) ability of Business Entity to conduct transaction; and
5) assurance of transfer of management and technical skills of
private sector to public sector.
8) Appraisal of the need of Government Support and/or Government
Guarantee as referred in number 2 letter f, includes:
a. Government Support aimed to improve the financial feasibility
of the PPP Project, which may be extended in the form of:
1) licencing;
2) land acquisition;
3) support of part of construction;
4) fiscal contribution in the form of cash and/or in the form of
non-cash and/ or non fiscal; and/or
5) other forms in accordance with the laws and regulations.
b. Government Guarantee aimed to reduce the risks of Business
Entity shall be provided by the Minister of Finance and/or
Infrastructure Guarantor Business Entity (BUPI/IIGF) in
accordance with the laws and regulations.
C.

Assessment of Project Readiness

1. Project Readiness assessment shall be conducted by the GCA.

2. Project Readiness assessment as referred in number 1 shall be conducted
by considering the following:
a. approval of the stakeholders pertaining to the concept of the PPP
Project;
b. application to obtain principle agreement of the Government Support
and/or Government Guarantee, when necessary;
36

c. PPP Project Management Team has been formed, legalized and

functioning in accordance with the determined roles and responsibilities ;
and
d. preparation of the draft budget and schedule of implementation of site
enablement, resettlement, environmental compliance as well as
settlement of legal issues.
D.

Decision Making of Go or not Go for the proposed PPP Project to

proceed to the Transaction Phase

1.

In the event results of the Preliminary Appraisal of Pre-Feasibility Study

(the Outline Business Case) and Project Readiness Assessment declare
that the PPP Project is technically, economically and financially feasible,
the said project shall proceed to the Transaction Phase.

2.

In the event the Preliminary Appraisal of Pre-Feasibility Study and the

Project Readiness Assessment declare that the said PPP Project is not
technically, economically and financially feasible, then the said project shall
not proceed to the Transaction Phase and the GCA may declare the said
project as a non PPP Project.

E.

Supporting Activities during the Project Preparation Phase

1.

Activities related to environment

For PPP Project that is required to have the AMDAL, the GCA shall
conduct the process of environmental study in the Projectf Preparation
Phase by following the AMDAL mechanism below:
a. Announcing the plan of activities and performing public consultation
with the community with regard to the environment in relation with the
plan of the Implementation of PPP Project.
b. Consultation as intended in letter b is aimed to collect information
pertaining to the impacts received by the community around the
location of plan of the Implementation of PPP Project if the PPP Project
is carried out.
c. When the process of Preliminary Appraisal of Pre-Feasibility Study is
started and during the process of preparation of Project Readiness
Assessment, the GCA, accompanied by the environmental consultant,
shall start to conduct preparation for producing AMDAL or UKL-UPL
Documents.
d. During the process of Project Readiness Assessment, the GCA shall
complete the preparation of AMDAL Documents.
e. In the event the PPP Project is not required to prepare the AMDAL
documents, the process of submission of the environmental permit may
37

be carried out based on the recommendation provided by the

authorised agency.
2.

Activities in relation to Land Acquisition

a. When the process of Preliminary Appraisal of Pre-Feasibility Study is
started, the GCA shall prepare the plan of land acquisition and
resettlement.
b. During the process of Project Readiness Assessment,
1) The GCA shall complete the documents of plan of land acquisition
and resettlement; and
2) The GCA shall start the process to obtain an approval on the
budget proposal and schedule of the Implementation of PPP
Project based on the laws and regulations.

3.

Activities in respect of the Government Support and/or Government

Guarantee.
a. When the process of Preliminary Appraisal of Pre-Feasibility Study is
started, the GCA shall consult with the BUPI to obtain initial indication
of the need of guarantee for the PPP Project;
b. During the process of Project Readiness Assessment, the GCA shall
prepare and submit a cover letter and form of screening for the
application to obtain the Government Guarantee to the BUPI; and
c. The GCA shall ensure that the BUPI issues confirmation to proceed for
the PPP Project before the process of completion of the Pre-Feasibility
Study at the Transaction Phase.

F.

Documents Generated during the Project Preparation Phase

1.

Documents generated during the Project Preparation Phase comprises of:

a. Report of the Preliminary Appraisal of Feasibility Pre-study (the Outline
Business Case); and
b. Report of the Project Readiness.

2.

Report of Preliminary Appraisal of Pre- Feasibility Study as referred in

number 1 letter a, shall at least includes:
a. Executive Summary.
b. Introduction, covering:
1) Projects Background; and
2) Objectives/Targets.
c. Legal and Institutional Study, covering:
1) Analysis of Laws and Regulations;
2) Institutional Analysis; and
38

3) Conclusion.
d. Technical Study, covering:
1) Technical Analysis;
2) Site Enablement;
3) Basic Engineering Design;
4) Scope of PPP Project;
5) Output Specifications; and
6) Conclusions.
e. Project Feasibility Study, covering:
1) Analysis of Social Benefit Costs;
2) Market Analysis;
3) Financial Analysis;
4) Risk Analysis;
5) Tariff Structure Analysis; and
6) Conclusions.
f.

Environmental and Social Study, covering:

1) Environmental Analysis;
2) Social Analysis;
3) Plan of Land Acquisition and Resettlement; and
4) Conclusions.

g. Cooperation Form (Choice of Modality) Review in Infrastructure

Provision.
h. Appraisal of the Needs for Government Support and/or Government
Guarantee, covering:
1) Appraisal on Government Support;
2) Appraisal on Government Guarantee; and
3) Conclusions.

3.

i.

Conclusions and Recommendations.

j.

Attachments.

Report of Project Readiness as intended in number 1 letter b, shall at least

include:
a. Executive Summary.
b. Institutional Readiness, covering:
39

1) Formation of PPP Project Management Team; and

2) Preparation of Work Plan.
c. Site Readiness, covering:
1) Program to overcome obstacles in preparation of site; and
2) Land Acquisition Program.
d. Readiness of resettlement plan, covering:
1) Resettlement plan; and
2) Institution involves in the resettlement plan.
e. Readiness to obtain the environmental permit, covering:
1) Status of the AMDAL progress; and
2) Identification of obstacles that need to be studied further.
f.

Legal Study pertaining to the status of licensing arrangement in respect

of the PPP Project.

g. Readiness of obtaining the Government Support and/or Government

Guarantee, covering:
1) Status of obtaining the Government Support, with regard to
whether the application to obtain the in-principle approval has been
submitted to the Government and how the status of the said
proposal submission is at the time of the preparation of the Report
of Project Readiness; and/or
2) Status of obtaining the Government Guarantee, with regard to
whether the BUPI has issued confirmation to proceed for the GCA.
h. Conclusions and Recommendations.
i.
4.

Attachments.

The Project Preparation Documents shall at least illustrate:

a. The feasibility of the project related to the cost and risk analysis;
b. The feasibility of social benefits, market interest;
c.

The need of the Government Support and/or Guarantee; and

d. Analysis pertaining to the environmental and social impacts, as well as

the plan of land acquisition and resettlement program.
5.

Terms of Reference for Procurement of Consultant for the Transaction of

PPP Project shall at least include:
a. Number of personnel needed;
b. Qualification needed;
c.

Budget Estimation;

40

d. General and primary tasks of the Consultant for the Preparation of a

draft PPP Contract;
e. Work schedule and report produced.
6.

The AMDAL documents which are prepared based on the laws and
regulations prevailing in the environmental sector.

7.

Documents of land acquisition and resettlement plan prepared based on

the laws and regulations prevailing in the land sector.

41

CHAPTER IV
THE TRANSACTION PHASE OF THE PPP PROJECT CYCLE
A. General Provisions
1. The GCA shall continue to the Transaction Phase of the PPP Project Cycle
after the Project Preparation Document is declared feasible for PPP and is
approved by the Stakeholders.
2. The Transaction Phase of the PPP Project Cycle comprises of activities of
completion of the Pre-Feasibility Study and procurement of Business Entity.
3. The completion of the Pre-Feasibility Study as referred in number 2 is aimed
to update and finalize all results of the Preliminary Appraisal of PreFeasibility Study (the Outline Business Case) and Project Readiness
Assessment as well as to ensure the risk allocation, provision mechanism of
the Government Support and/or Government Guarantee as well as funding
structure of the PPP Project as the basis for generating the Pre-Feasibility
Study Document.
4. The GCA shall continue to the process of procurement of Business Entity
after completing the Pre-Feasibility Study Document.
5. The procurement of Business Entity as referred in number 2 shall be carried
out with the purpose to obtain the best partner for the GCA in carrying out
the PPP Project based on the provisions of the laws and regulations and
shall be conducted in compliance with the principles of fair competition.
6. The Procurement Committee is formed by the GCA after the completion of
the Pre-Feasibility Study Document.
7. The Procurement Committee is formed to prepare and carry out the process
of Business Entity Procurement after completing the Document of PreFeasibility Study, starting from the process of prequalification, procurement,
bid preparation and submission, evaluation and determination of winner, as
well as finalization of procurement by executing the PPP Contract.
8. In addition to finalizing the Document of Pre-Feasibility Study and conduct
the procurement process of Business Entity, the GCA shall conduct
supporting activities such as completion of the process of land acquisition
and resettlement.
9. The costs incurred in the Transaction phase covering the completion of the
Document of Pre-Feasibility Study and procurement of Business Entity by
the GCA may be imposed to the winner of the tender (the preferred bidder).
10. In the event the costs as intended in number 9 is imposed to the winner of
the tender, then the winner of the tender may take into account the said
charge as one of the components of the PPP Projects total costs.

42

B. Completion of Pre-Feasibility Study

1. The GCA shall conduct the Final Appraisal of Pre-Feasibility Study and
preparation of procurement plan design to complete the Documents of PreFeasibility Study used as the basis to prepare the Documents of Public
Tender.
2. The Final Appraisal of Pre-Feasibility Study (the Final Business Case) shall
be conducted by completing components comprising of:
a. approval of the stakeholders pertaining to the PPP Project;
b. update and confirmation of the Preliminary Appraisal of Pre-Feasibility
Study (the Outline Business Case);
c. confirmation of the PPP Project readiness;
d. confirmation pertaining to the market interests;
e. determination of tariff structure;
f.

confirmation pertaining to the availability of budget for the land

acquisition; and

g. Decision on the implementation mechanism of Government Support

and/or Government Guarantee as well as the funding structure.
3. Preparation of the plan of procurement of Business Entity shall be carried
out by implementing and considering the following:
a. prepare the design of Business Entity procurement plan covering:
1) the plan to form a procurement committee;
2) list of prospective tender participants having the potential to join the
procurement, form of evaluation and criteria in evaluation tender
documents as well as procurement process;
3) plan of stages on the implementation of procurement, arrangement
of implementation time on each stage and resources needed; and
4) procedures of calculating the amount of project value and tariff
structure.
b. preparation of the design of PPP Contract regarding the scope of the
PPP Contract, rights and obligations of the parties, period of agreement
and other matters under this Minister Regulation and matters mutually
agreed by the parties.
4. The GCA shall explore market interest to obtain inputs and to know the
interest of prospective investors on the PPP Project to be offered and make
the list of prospective investors indicated to be interested in the PPP Project.
C. Procurement of Business Entity
1. Procurement of the Business Entity shall be carried out based on the
principle of disclosure, competitive, transparent, fair and accountable.
43

2. Procurement of Business Entity includes the activity of:

a. Business Entity Procurement Planning; and
b. Business Entity Procurement Implementation.
3. Business Entity Procurement Planning
a. Business Entity Procurement Planning comprises of 2 (two) activities,
namely:
1) The formation of Procurement Committee; and
2) The preparation of Procurement Plan.
b. Procurement Commitee as intended in letter a number 1) shall be
formed by the GCA by fulfilling the provisions below:
1) The GCA shall form Procurement Committee whose members shall
be in odd number of minimally 5 (five) persons consisting of the
chairman, deputy chairman, and secretary who also functions as a
member and several members.
2) Members of the Procurement Committee shall be derived from the
agency itself and may be derived from the related agency/working
unit and/or professionals.
3) One of the members of the Procurement Committee shall constitute
a member of the PPP Project Management Team.
4) Members of the Procurement Committee shall at least consisting of
the parties understanding, knowing and mastering:
a) the procurement procedures;
b) the scope of work of the PPP Project;
c) the law of contract and provisions of laws and regulations
prevailing in the infrastructure field of the related sector;
d) the technical aspects; and
e) the financial aspects.
5) Members of Procurement Committee are not allowed to have any
Affiliation relationship with members of another Procurement
Committee or with the prospective tender participant, tender
participant or consultant.
6) In the event at the time of implementation of procurement it is found
out that one of the members of Procurement Committee has an
Affiliation relationship with a member of another Procurement
Committee or with the prospective tender participant, tender
participant, or consultant, then the said member of the Procurement
Committee shall convey to the GCA pertaining to that matter and the
GCA shall substitute the said member of the Procurement
Committee.
7) Every decision of the Procurement Committee shall be made based
on deliberation to reach consensus.
44

In the event a decision cannot be made through a deliberation to

reach consensus then the decision making shall be carried out
based on majority votes (each member of the Procurement
Committee has 1 (one) vote that may not be represented by another
member of the Procurement Committee).
c. Preparation of procurement plan as intended in letter a number 2) shall
be carried out by the Procurement Committee through the following
activities:
1) preparation of the procurement schedule and concept of the
procurement announcement;
2) preparation of the Prequalification Documents;
3) preparation of the HPS (owners estimate);
4) preparation of the Public Tender Documents; and
5) testing the market interest (market sounding).
d. Preparation of the Procurement Schedule and Procurement
Announcement Concept as intended in letter c number 1) shall meet the
following provisions:
1) Procurement Committee shall prepare the schedule
implementation of the Business Entitys procurement.

of

2) The schedule of implementation of the Business Entitys

procurement shall provide sufficient time allocation to conduct all
stages of the Business Entitys procurement.
3) The Procurement Committee shall prepare the procurement
announcement concept.
e. The preparation of Prequalification Documents as intended in letter c
number 2) shall fulfil the following provisions:
1) The Procurement Committee shall prepare the Prequalification
Documents;
2) The Prequalification Documents shall at least contain the following:
a) summary or brief elucidation of the PPP Project;
b) rights and obligations of prospective tender participants,
including the compensation of the prospective tender
participants if prequalification is cancelled after the results of
prequalification evaluation was cancelled.
c) form or format of the Documents of Expression of Interest;
d) requirements of qualification of prospective tender participants;
e) schedule of implementation and procedures of prequalification
evaluation.

45

3) The Prequalification Documents as intended in number 2) shall be

determined by the GCA.
f.

the preparation of HPS (owners estimate) as intended in letter c number

3) shall fulfil the following provisions:
1) the Procurement Committee shall prepare HPS (owners estimate)
thoroughly based on the report of Pre-Feasibility Study of PPP
Project.
2) The calculation of HPS (owners estimate) shall cover investment
cost which is consisting of project cost, interest provision, interest
assumption, and escalation.
3) Project cost as intended in number 2) is consisting of preparatory
cost, construction cost and supervisory cost, operation and
maintenance cost as well as land acquisition cost, if any.
4) Interest as intended in number 2) is consisting of interest during
construction period and interest on loan principal.
5) The calculation of HPS (owners estimate) shall consider any
matters affecting the business undertakings of PPP Project in
accordance with the sector characteristic.
6) The calculation of HPS (owners estimate) shall be done with
assistance from the consultant.
7) The GCA shall determine the HPS (owners estimate) prepared by
the Procurement Committee.

g. The preparation of Public Tender Documents as intended in letter c

number 4) shall fulfill the following provisions:
1) The Procurement Committee shall prepare the Public Tender
Documents.
2) The Public Tender Documents shall contain the general provisions,
scope of work, bidding process, method of evaluation and other
matters deemed necessary by the Procurement Committee to be
included and required in the Public Tender Documents.
h. The market sounding as intended in letter c number 5) shall fulfil the
following provisions:
1) The GCA shall explore the market sounding to obtain inputs and to
know the interest of prospective investors on the PPP Project to be
offered.
2) The market sounding may be carried out in various forms among
others by conducting road show, one-to-one meeting with potential
national and international financial institution and so on.
3) The market sounding may be conducted more than once.

46

4) Based on the results of the market sounding conducted by the GCA,

the Procurement Committee may make alteration to the concept of
the Public Tender Documents.
i.

Use of Consultant Services

1) The GCA may use consultant services assigned to provide inputs
and suggestions to the GCA in conducting the Business Entity
Procurement Planning as well as to accompany or represent the
GCA in carrying out all activities related to Business Entity
Procurement.
2) The Consultant appointed by the GCA is prohibited to provide
consultation services and/or accompany and/or provide information
to another party in respect of the PPP Project where the consultant
is involved.

4. Implementation of Business Entity Procurement

a. Implementation of Business Entity Procurement covers the activities of
prequalification, implementation of bid, and preparation of the execution
of the PPP Contract.
b. The GCA may continue to the prequalification process, in the event the
following matters have been fulfilled:
1) Documents of Pre-Feasibility Study;
2) In-principle approval of the Government Support and/or Government
Guarantee from the Minister and/or Head of Region and/or inprinciple approval from the BUPI; and
3) The SKKL and environmental Permit from the Regional Government
and Designation of Project Location from the Governor.
5. Prequalification as intended in number 4 letter a shall meet the following
provisions:
a. Prequalification Announcement
1) The Procurement Committee shall widely announce the presence of
prequalification of the Business Entity.
2) The content of the announcement shall at least include:
a) name and address of the GCA that will conduct the procurement
of Business Entity;
b) brief elucidation pertaining to the PPP Project that will be carried
out;
c) estimate of value of the PPP Project and requirements of
prospective tender participants; and
d) place, date and time to take Prequalification Documents.
3) Prequalification of Business Entity shall be announced at least in
one printed media having national circulation and one printed media
47

having circulation in the location of the PPP Project to be carried out,

and if possible, the announcement shall be made in the website of
the related GCA.
4) For the PPP Project most likely attracts foreign investors, the
announcement may be carried out through a printed media having
international circulation.
b. Prequalification Implementation
1) The GCA shall continue to the process of prequalification
implementation in the event all requirements as intended in number
5 letter a have been fulfilled.
2) Procedures of Prequalification Implementation:
a) Prequalification announcement for the procurement of Business
Entity shall be carried out in accordance with number 5 letter a.
b) The Procurement Committee shall, on the date the
prequalification announcement is determined, register the
prospective tender participants.
c) Prospective tender participants shall submit the Documents of
Expression of Interest as the requirement to take Prequalification
Documents.
d) In accordance with the schedule determined, prospective tender
participants shall submit the Prequalification Documents to the
Procurement Committee.
e) Evaluation and clarification of the Prequalification Documents
shall be carried out by the Procurement Committee.
f)

Determination of list of prospective tender participants who

passed the prequalification by the Procurement Committee.

g) Validation of
Committee.

prequalification

result

by

the

Procurement

h) Announcement of prequalification result by the Procurement

Committee.
i)

Prospective tender participants who passed the prequalification

are entitled to take the Public Tender Documents from the
Procurement Committee by paying a certain amount in
accordance with the provisions of laws and regulations.

j)

Submission of protest / objection by a prospective tender

participant who does not pass prequalification to the GCA shall
be made within 7 (seven) working days since the date of
announcement of the results of prequalification by providing
protest guarantee.

k) Enquiry and answer to the protest against the results of

prequalification shall be provided within 7 (seven) working days
48

as of the submission of the protest/objection received by the

GCA.
l)

Re-Evaluation by the Procurement Committee within 7 (seven)

working days after the protest / objection of the prospective
tender participant proved to be true.

m) Based on the results of re-evaluation, the Procurement

Committee shall announce them to the prospective tender
participants under the provisions:
(1) If the prospective tender participants passing the
Prequalification are less than 3 (three), the Procurement
Committee shall process re-Prequalification.
(2) Prospective tender participants who have previously passed
the Prequalification need not follow the process of reprequalification.
(3) The Procurement Committee shall announce the rePrequalification by inviting new prospective tender
participants.
(4) In the event after re-Prequalification has been conducted,
and there is no addition of new prospective tender
participants passing the Prequalification or all prospective
tender participants who have passed the Prequalification are
still less than 3 (three), the Procurement Committee shall
continue to the process of procurement of Business Entity.
3) Procedures of Prequalification Evaluation
a) Prequalification covers the evaluation of completion of the
following documents:
(1)

validity of the permits owned to be able to carry out its

business activities;

(2)

its deeds of establishment and article of association,

including any amendments thereof;

(3)

authority to sign the PPP Contract;

(4)

structure of the board of directors and the board of

commissioners;

(5)

statement letter pertaining to the status of the prospective

tender participant declaring that the prospective tender
participant is not being in remission, is not being
bankrupted, the business activity thereof is not being
suspended, and/or not serving any criminal case (if the
prospective tender participant is an Indonesian legal entity,
the statement letter shall be signed over a duty stamp. If
the prospective tender participant is a foreign legal entity,
the said statement letter shall be legalized by the notary
49

public and consularized by the Indonesian embassy or

consulate in the country where the said statement letter
was signed);
(6)

experiences in the PPP Project of Provision of similar

Infrastructure;

(7)

ability to provide facilities and equipment as well as

personnel;

(8)

financial statement which has been audited by a public

accountant office covering last 3 (three) financial years (if
the prospective tender participant was established less
than 1 (one) year, then the financial statement used is the
financial statement of its holding company);

(9)

letter of financial support from the bank;

(10) letter of support

agreement); and

from

shareholders

(sponsorship

(11) the availability of special equipment, special experts

required, or certain experience for special/ specific/ hightechnology work.
b) In the event the prospective tender participant is a consortium,
the evaluation above shall cover each member of the consortium
and shall submit a consortium agreement that clearly shows
chairman of the said consortium. In the event the prospective
tender participant is a limited liability, completion of the above
documents also covers the shareholders thereof.
4) Implementation of Bid
a) Implementation of bid shall comprise of activities of Preparation
of List of Participant, Submission of Invitation and taking of
Public Tender Documents.
b) The Procurement Committee shall prepare the list of prospective
tender participants who passed in the Prequalification to be
legalized by the GCA.
c) List of prospective tender participants who have passed the
Prequalification shall be announced in the official board or the
GCAs website.
d) Prospective tender participants who passed the Prequalification
shall be invited to take the Public Tender Documents.
e) Legal representative of prospective tender participant may
empower in writing to another party to take the Public Tender
Documents that shall be shown to the Procurement Committee
at the time of taking the Public Tender Documents.
5) Elucidation of Procurement
50

a) Elucidation of Procurement shall be carried out at the place and

time which have been determined, and in the presence of
prospective tender participants.
b) The absence of prospective tender participants at the time of
elucidation of procurement cannot be used as the basis to refuse
or abort the documents submitted.
c)

The legal representative of the prospective tender participant

may empower another party in writing to attend the event of
Elucidation of Procurement and shall be shown to the
Procurement Committee when the Elucidation of Procurement is
carried out.

d) In the event of elucidation of procurement, the following shall be

elucidated to the prospective tender participants:
(1) procurement method;
(2) procedures of submission of Bid Documents;
(3) documents to be attached in the Bid Documents;
(4) procedures of opening of the Bid Documents;
(5) method of bid evaluation;
(6) matters that can abort the bid;
(7) concept of cooperation contract;
(8) provisions and method of bid evaluation in respect of price
preference on the use of domestic production in accordance
with the prevailing laws and regulations; and
(9) the amount, period and the party that may issue the bid
bond.
e) If deemed necessary, the Procurement Committee may provide
further elucidation by conducting field inspection.
f)

Especially for the discussion of the concept of the PPP Contract,

the Procurement Committee may held a meeting with each
prospective tender participant separately (competitive dialogue)
to accommodate feedbacks or comments from each prospective
tender participant to the concept of the PPP Contract, including
the maximum amount of viability support (viability gap funding).

g) Every feedback or comment from each prospective tender

participant shall be included in the minutes signed by the
Procurement Committee and representative of the prospective
tender participant providing the said feedback or comment. The
Procurement Committee shall guarantee the confidentiality of
information obtained in the separate meeting with each
prospective tender participant (probity).
51

h) Alteration on the concept of the PPP Contract shall be reported

by the Procurement Committee to the GCA to obtain its
approval.
i)

The Procurement Committee shall submit the alteration of the

PPP Contract concept to all prospective tender participants prior
to the deadline of the Bid Document submission and shall
constitute the final concept to be executed by the Business
Entity which wins the tender, including the maximum amount of
the feasibility support that may be used as the procurement
parameter.

j)

Provision of information to questions from the prospective tender

participants pertaining to the Public Tender Documents and
answers from the Procurement Committee as well as other
information including any alteration of the Public Tender
Documents and field inspection, shall be specified in the BAP
signed by the Procurement Committee and by minimally 1 (one)
representative of the tender participants who are present, and
forming one unit inseparable of the Public Tender Documents.

k) If in the said BAP (minutes of pre-bid meetings) there are

matters or new provisions or significant alteration that needs to
be accommodated, the Procurement Committee shall include
them into the alteration of the Public Tender Documents.
6) Submission of Bid Documents
a) Method of submission of the bid Documents shall be specified in
the Public Tender Documents.
b) Method of submission of the Bid Documents shall use the 2
(two)-envelope method, namely envelope I containing
administrative and technical documents, and envelope II
containing financial documents, then the said two envelopes
shall be incorporated into 1 (one) closed envelope and submitted
at the same time to the Procurement Committee.
c) The Bid Documents shall be submitted in accordance with the
place, date and time as specified in the Public Tender
Documents.
d) The Bid Documents shall be submitted directly by the
prospective tender participant to the Procurement Committee at
the place, date and time which have been determined in the
Public Tender Documents.
e) The Procurement Committee is not allowed to change the
deadline of the submission of Bid Documents unless it is
approved by all prospective tender participants that shall be
included in the minutes and alteration of Public Tender
Documents.
52

f)

On the deadline of the submission of the Bid Documents, the

Procurement Committee shall open a meeting of opening the Bid
Documents, declare before the prospective tender participants
that the time for submitting the Bid Documents has been closed
in accordance with the date and time already determined.

g) The Procurement Committee shall reject the Bid Documents

submitted in excess to the deadline of the submission of the Bid
Documents or addition of the Bid Documents.
h) The tender participant may not withdraw if it has submitted the
Bid Documents and the said Bid Documents have been received
by the Procurement Committee.
7) Opening Bid Documents
a) The method of opening Bid Documents shall be specified in the
Public Tender Documents.
b) The Procurement Committee shall request the willingness of at
least 1 (one) representative of each of at least 2 (two) tender
participants who attend to act as witnesses.
c) If there is no representative of tender participant or there is only
1 (one) representative of tender participant as a witness, the
Procurement Committee shall then request the approval of the
tender participants who attend to postpone the opening of the
Bid Documents.
d) If the tender participants who are present do not agree to
postpone the opening of the Bid Documents, then the opening of
the Bid Documents shall be continued by appointing one extra
witness other than the Procurement Committee in writing by the
Procurement Committee.
e) If the tender participants who are present agree to postpone the
opening of the Bid Documents, then the Procurement Committee
shall postpone it for 2 (two) hours.
f)

If after being postponed for 2 (two) hours there is only 1 (one)

tender participant appears or there is no representative of other
participants as the witness, the opening of the Bid Documents
shall be continued by appointing an extra witness other than the
Procurement Committee in writing by the Procurement
Committee.

g) The Procurement Committee shall inspect the contents of the

box/ place of submission of the Bid Documents and calculate the
number of envelopes of Bid Documents submitted.
h) The Procurement Committee shall inspect, show and read
before the tender participants pertaining to the completion of the
Bid Documents of each tender participant, covering:
53

(1) Letter of bid specifying the period of bid but does not specify
the bid price;
(2) The original bid bond having the same period with the period
in the letter of bid; and
(3) Technical Bid Documents and other supporting documents
required by the Public Tender Documents.
i)

The Procurement Committee may abort the Bid Documents at

the opening of bid, if the submission and completion of the Bid
Documents are not in accordance with the Procurement
Documents.

j)

The Bid Documents shall then be initialized by the Procurement

Committee and 2 (two) representatives of the tender
participants.

k) The Procurement Committee shall immediately prepare the

BAPP (minutes of bid opening) to all Bid Documents submitted.
l)

After being read clearly, the BAPP shall be signed by the

Procurement Committee and 2 (two) representatives of the
tender participants appointed by the tender participants who are
present.

m) In the event there is no tender participant appearing until the

deadline determined, then the BAPP shall be signed by the
Procurement Committee and witnessed by 2 (two) persons other
than the Procurement Committee appointed in writing by the
Procurement Committee.
n) In the event there is only 1 (one) bid, the BAPP shall be signed
by the Procurement Committee, representative of the tender
participant, and 2 (two) witnesses other than the Procurement
Committee and the tender participant appointed in writing by the
Procurement Committee.
o) Copy of the BAPP shall be submitted to the representative of the
appearing tender participants without being enclosed with the
Bid Documents.
p) The Procurement Committee is not allowed to receive any
alteration or addition whatsoever to the Bid Documents
submitted by the tender participants after the deadline of
submission of the bid Documents.
q) The Bid Documents which have been received by Procurement
Committee shall become the documents belonging to the GCA
and are confidential.
8) Bid Evaluation
a) Bid evaluation shall be conducted in accordance with the
provisions already determined in the Public Tender Documents.
54

b) The method of bid evaluation used is adjusted to the type of

infrastructure to be cooperated.
9) Making Minutes of Procurement Results
a) The Procurement Committee shall conclude the evaluation
results specified in the BAHP (minutes of results of the tender).
b) The BAHP shall contain results of the implementation of
procurement, including method of evaluation, formulas used, up
to the decision of winner sequence in the form of list of tender
participants.
c) The BAHP shall be signed by the chairman and all members of
the Procurement Committee or at least two third of the total
members of the Procurement Committee.
d) The BAHP is confidential until the time of signing of the PPP
Contract.
e) The BAHP shall contain the following:
(1) names of all tender participants and bid price and/ or
corrected bid price of each bid participants;
(2) method of evaluation used;
(3) formulas used;
(4) other information deemed necessary pertaining to the
circumstances of implementation of procurement;
(5) date of making the minutes and number of tender
participants who passed and did not pass in each evaluation
stage;
(6) decision of sequence of 1 (one) prospective winner and 2
(two) reserves;
(7) statement that the procurement is declared to fail and reprocurement shall be conducted if there is not any bid
eligible;
(8) decision of sequence of 1 (one) prospective winner and 1
(one) reserve, if there are only 2 (two) bidders are eligible for
the requirements; and
(9) the statement that the procurement declared to fail and reprocurement shall be made, or the said bidder is determined
as a single prospective bidder if there is only one eligible
tender participant.
10) Declaration of Tender Winner
a) The Procurement Committee shall declare the prospective
tender winner based on the results of evaluation.
55

b) The Procurement Committee shall make and submit the report

to the GCA in order to determine the Business Entity who wins
the tender.
c) The report as intended in letter b shall be accompanied by the
proposal of prospective tender winner as well as stand-by
prospective tender winner and elucidation or other information
deemed necessary as material of consideration to make
decision.
d) The GCA shall declare the Business Entity winning the tender
based on the proposal of the Procurement Committee.
e) In the event the GCA has different opinion from the proposal of
the Procurement Committee, then the GCA shall discuss the
said matter with the Procurement Committee in order to make
decision and shall be included in the minutes containing the
objection and agreement to be signed by the GCA and the
Procurement Committee (decision takes the form of agreeing the
proposal of the Procurement Committee or conducting reevaluation which results shall be final).
f)

The supporting data needed to declare the Business Entity

winning the tender are:
(1) Public Tender Documents, including the alteration (if any);
(2) BAPP;
(3) BAHP;
(4) Summary of process of procurement and results of
procurement; and
(5) Bid Documents from prospective tender winner and reserve
of tender winner.

g) In the event of delay in declaring the tender winner and cause

the bid/ bid guarantee expired, confirmation to all tender
participants shall be made in order to extend the bid letter and
bid bond.
h) In the event the prospective winner refuses to extend the validity
of the bid letter and bid bond, it may withdraw without being
imposed with any sanction.
6. Declaration of Single Bidder
a. The Procurement Committee shall declare a single bidder as the winner
if there is only 1 (one) tender participant that follows prequalification and/
or submitted Bid Documents as well as fulfills the administrative and
technical requirements.

56

b. The Procurement Committee shall make and submit a report to the

Minister/ Head of Institution/ Head of Region pertaining to the single
bidder.
c. The Minister/ Head of Institution/ Head of Region shall order the
Procurement Committee to negotiate with the single bidder.
d. The Procurement Committee shall implement negotiation with the single
bidder by referring to the Tender Documents and the HPS (owners
estimate).
e. If the negotiation with the single bidder causes the bid/ bid bond expired,
then the single bidder shall immediately extend the bid letter and bid
bond prior to the expiration thereof.
f.

The Procurement Committee shall make and submit the BAHN and
other information to the Minister/ Head of Institution/ Head of Region.

g. The Minister/ Head of Institution/ Head of Region may reject or agree

with the results of the negotiation based on reasonable and accountable
grounds.
h. In the event the Minister/ Head of Institution/ Head of Region refuses the
results of the negotiation, then the procurement process shall be
repeated.
i.

In the event the Minister/ Head of Institution/ Head of Region agrees with
the results of the negotiation, the Procurement Committee may
determine the single bidder as the winner.

j.

The supporting data needed to determine the negotiation are:

1) Documents of the Public Tender, including the alteration thereof (if
any);
2) BAPP;
3) BAHP; and
4) Summary of the tender process and tender results.

7. Announcement of a tender winner or a single bidder of tender winner or a

single bidder.
a. Announcement of a tender winner or a single bidder of tender winner or
a single bidder shall be made and notified by the Procurement
Committee to all tender Participants at the latest 2 (two) working days
upon receipt of the decision of tender winner or single bidder from the
Minister/ Head of Institution/ Head of Region.
b. In the event the tender Participant is the only participant passing the
prequalification, the submission to the tender Participant is not required.
c. In the event the PPP Project requires the viability support (viability gap
funding), the GCA shall submit the result of announcement of winner
determination to the Minister of Finance for submitting a request of final
determination granting of viability support (viability gap funding).
57

8. Challenge by Tender Participant

a. Tender participants who object to the determination of tender winner or
single winner are given the opportunity to challenge in writing, at the
latest 7 (seven) working days since the date of announcement of the
Business Entity tender winner.
b. The challenge shall be delivered to the GCA, attached with evidences of
the deviation.
c. The challenge shall be delivered by the tender participant individually or
together with other tender participants.
d. The reliability of the subject matter of the challenge shall be investigated
by the GCA based on the evidences submitted by tender participant and
other supporting evidences.
e. The GCA shall announce the results of investigation on the challenge
submitted and shall take reasonable action in relation to the results of
investigations at the latest within 9 (nine) working days after the
expiration of the challenge period.
9. Issuance of Letter of Declaration of Winner
a. The GCA shall issue a Letter of Declaration of Business Entity Tender
Winner as the party implementing the PPP Project under the provisions:
1) there is no more challenge from tender participants; or
2) the reliability of the subject matter of the challenge received by the
GCA in the challenge period turns out to be not obviously true , or
the challenge has surpassed the challenge period.
b. The tender participant who has been declared as a winner shall receive
the said decision.
c. In the event the tender participant withdraws and the bid period thereof
is still valid, then the said withdrawal may only be conducted based on
the grounds objectively acceptable by the GCA.
d. The GCA shall have the rights to disburse the bid bond of the
withdrawing tender participant and it shall be deposited to the states
treasury as the Non-Tax States Revenue or in the event the GCA is a
Head of Region, it shall be deposited to the regional treasury as the
regional revenue.
e. A tender participant who has been decided as a winner but has
withdrawn under unacceptable grounds and the bid period thereof is still
valid, beside the respected bid bond shall be disbursed and become the
Non-Tax States Revenue or deposited to the regional treasury, the said
tender participant shall also be subject to a sanction in the form of
prohibition to follow activities of the procurement of Business Entity for
the PPP Project for 2 (two) consecutive years.

58

f.

In the event the tender participant as intended in letter e is a consortium,

then all members of the said consortium either severally or jointly are
subject to a sanction in the form of prohibition to follow activities of the
procurement of Business Entity for the PPP Project for 2 (two)
consecutive years.

g. In the event a tender participant who has been declared as the first
ranked tender winner withdraws, then the second ranked prospective
tender winner is declared as the preferred bidder provided that:
1) The said declaration of tender winner shall first obtain the GCAs
approval.
2) The validity of the bid letter of the second ranked prospective tender
winner is still effective or the period thereof has been extended.
h. In the event the second ranked prospective tender winner is also
withdrawn, then the declaration of the winner can be awarded to the third
ranked of prospective tender winner (if any) provided that:
1) The said declaration of tender winner shall first obtain the GCAs
approval.
2) The validity of the bid letter of the third ranked of prospective tender
winner is still effective or the period thereof has been extended.
3) The GCA shall have the right to disburse the bid bond of the second
ranked prospective tender winner and it shall be deposited to the
states treasury as the Non-Tax States Revenue or in the event the
GCA is a Head of Region, it shall be deposited to the regional
treasury as the regional revenue.
4) If the second ranked prospective winner withdraws under reasons
objectively unacceptable by the GCA, then it will be subject to a
sanction in the form of prohibition to follow activities of the
procurement of Business Entity for the PPP Project for 2 (two)
consecutive years.
5) In the event the third ranked prospective winner withdraws under
reasons objectively unacceptable by the GCA, then it will be subject
to a sanction in the form of prohibition to follow activities of the
procurement of Business Entity for 2 (two) consecutive years and
the GCA is entitled to disburse the bid bond of the third-sequence
prospective tender winner and it shall be deposited to the states
treasury as the Non-Tax States Revenue or in the event the GCA is
a Head of Region, then it shall be deposited to the regional treasury
as the regional revenue.
6) If the first, second and third prospective winners withdraw, the
Procurement Committee shall repeat the procurement.
7) Letter of Declaration of Tender Winner shall be made at the latest 5
(five) working days after the announcement of determination of the
59

tender winner and shall be immediately submitted to the tender

winner.
8) One of the copies of the Letter of Declaration of Tender Winner shall
be submitted (without attaching the PPP Contract) at least to the
working unit that shall monitor the implementation of the PPP
Contract.
10. Issuance of Letter of Declaration of Single Winner
a. The GCA shall issue a Letter of Declaration of Single Winner of
Business Entity Procurement as the party carrying out the PPP Project
based on the BAHN (minutes of result of negotiation) provided that:
1) there is no challenge from tender participants; and
2) the validity of the challenge received by the GCA in the challenge
period turned out to be not verifiable, or the challenge received has
surpassed the challenge period.
b.

This Letter of Declaration shall not be applicable in the event the

single bidder is the only participant who is passed the Prequalification.

c. The single winner determined as the party carrying out the PPP Project
shall accept the said decision.
d. In the event the single winner withdraws and the bid period thereof is still
valid, then the said withdrawal may only be carry out based on the
grounds objectively acceptable by the GCA.
e. The GCA shall have the right to disburse the single winners bid bond
and it shall be deposited to the states treasury as the Non-Tax States
Revenue or in the event the GCA is a Head of Region, it shall be
deposited to the regional treasury as the regional revenue.
f.

A single winner who withdraws under unacceptable grounds and the bid
period thereof is still valid, beside the respected bid bond shall be
disbursed and become the Non-Tax States Revenue or deposited to the
regional treasury, the said single winner is subject to a sanction in the
form of prohibition to follow activities of the procurement of Business
Entity for the PPP Project for 2 (two) consecutive years.

g. In the event the single winner is a consortium, then all members of the
said consortium either severally or jointly are subject to a sanction in the
form of prohibition to follow activities of the procurement of Business
Entity for the PPP Project for 2 (two) consecutive years.
h. If the single winner withdraws, the Procurement Committee may repeat
tender.
i.

Letter of Declaration of single winner shall be made at the latest 5 (five)

working days after the announcement of a single bidder and shall
immediately be submitted to the single bidder.

60

j.

One of the copies of the Letter of Declaration of a single bidder shall be

submitted (without enclosure of the PPP Contract) at least to the working
unit that will monitor the implementation of the PPP Contract.

11. Preparation for the Signing of PPP Contract

a. Process for the establishment of a Special Purpose Company (SPC)/
Business-Entity
1) The tender winner shall establish a Business Entity (a special
purpose company/SPC) that shall sign the PPP Contract.
2) The Business Entity/SPC shall be legally established at the latest 6
(six) months since the issuance of the Letter of Declaration of
Tender Winner or Letter of Declaration of Single Winner by the GCA.
b. Process of Signing the PPP Contract
1) The PPP Contract shall be signed by the GCA and Business Entity
(the SPC).
2) The PPP Contract shall become effective after all conditions
precedent in the PPP Contract have been obtained by all parties.
3) The conditions precedent as intended are among others the
issuance of approval of Government Guarantee and the obtaining of
all necessary permits by the Business Entity/SPC to carry out its line
of business.
4) The financial close shall not constitute conditions precedent in order
that the PPP Contract becomes effective.
5) In the event all conditions precedent have been fulfilled, the GCA
shall issue minutes pertaining to the effectiveness of the PPP
Contract.
D. Decision-Making of the proposed PPP Project to proceed to the
Procurement Process
1. In the event the PPP Project has met the criteria of a ready-to-offer project,
the GCA may proceed to the process of procurement of business entity.
2. In the event the PPP Project does not meet the criteria of a ready-to-offer
project, the GCA shall complete all necessary requirements so that it may
continue to the process of procurement of business entity.
3. Criteria of a ready-to-offer project as intended are to complete the following
documents:
a. Pre-Feasibility Study Document;
b. In-principle approval of the Government Support and/or Government
Guarantee;
c. Environmental Permit and the SKKL from the Head of Region; and
61

d. Designation of Project Location from the Governor.

E. Supporting Activities During the Transaction Phase
1. Activities Related to Environment:
a. To finalize the Pre-Feasibility Study, the GCA shall complete all the
preparation of the AMDAL Documents or fill the UKL-UPL forms.
b. To submit the AMDAL documents which have been completed to the
Minister, Governor, or Head of Region in accordance with its authority
through the Secretariat of the Amdal Evaluation Commission in the
Central, provincial or regency/city level in accordance with its authority
based on the prevailing laws and regulations.
c. To submit the UKL-UPL forms already filled to the Minister, Governor, or
Head of Region in accordance with its authority to be further used as the
basis for the issuance of the UKL-UPL recommendation.
d. To ensure that the SKKL or the UKL-UPL recommendation has been
obtained from the Minister, Governor or Head of Region in accordance
with its authority based on the laws and regulations.
e. To determine the requirements that shall be carried out by the Business
Entity as those specified in the SKKL or UKL-UPL recommendation and
Environmental Permit.
2. Activities With Regard To Land Acquisition and Resettlement
a. The GCA shall submit application of issuance of determination of
location to the Governor based on the laws and regulations.
b. The GCA shall use the information in the RKL and RPL in order to
complete the program of land acquisition and resettlement.
c. The GCA shall ensure the availibility of budget to carry out the land
acquisition.
d. At the time the process of Business Entity Procurement is started, the
GCA shall ensure that the process of land acquisition has started to be
carried out by the institution which undertakes affairs in the land sector in
accordance with the laws and regulations.
e. At the time the process of Business Entity Procurement is started, the
GCA shall ensure that the resettlement program has been carried out.
f.

At the end of the process of Business Entity Procurement, the GCA shall
ensure that the land acquisition has been carried out through an
institution which undertakes affairs in the land sector based on the laws
and regulations.

3. Activities With Regard To Government Support and/or Government

Guarantee.
a. Government Support
62

1) At the time the Pre-Feasibility Study is completed, the GCA shall

submit Documents of the Pre-Feasibility Study to the Minister of
Finance to obtain the in-principle approval of the Government
Support in the form of non-financial fiscal contribution;
2) At the time of the Prequalification implementation, the GCA shall file
the request of granting the initial determination of feasibility support
in accordance with the laws and regulations;
3) At the time of the bid implementation, the Minister of Finance shall
issue an initial decision letter of viability support (viability gap
funding) in accordance with the laws and regulations;
4) At the time of determination of a tender winner, the GCA shall submit
results of determination of the winner to the Minister of Finance as
the basis for Minister of Finance to issue the final decision letter of
viability support (viability gap funding).
b. Government Guarantee
1) By enclosing the Report of Pre-Feasibility Study, the GCA shall
submit the guarantee application package to obtain the Government
Guarantee to the BUPI and the BUPI shall issue a Letter of Intent for
the project eligible for the BUPIs requirements.
2) After the Guarantee Application Package received by the BUPI,
BUPI shall conduct an evaluation on the guarantee application
package according to the provisions of the prevailing laws and
regulations.
3) The BUPI and GCA shall finalize the Guarantee Contract and the
Regress Contract shall be done at the finalization of the PPP
Contract, at the same time finalization of the loan agreement with the
business entity.
4) Before the tender participants submit the Bid Documents, the GCA
shall ensure that the BUPI has issued in-principle approval.
5) In-principle approval as intended in point 4) is issued in the form of
Letter of Intent based on the results of BUPIs evaluation.
F. Documents Generated in the Transaction Phase
1. Documents generated in the Transaction Phase of PPP Project Cycle
comprises of:
a. The PPP Contract;
b. The Pre-Feasibility Study;
c. The Public Tender;
d. The Guarantee Agreement; and
e. The Regress Agreement.
63

2. The PPP Contract Document as intended in number 1 letter a shall at

least cover:
a. scope of work that shall be carried out by Business Entity or outputs
that shall be completed by the Business Entity;
b. period of the PPP Contract including possibility of the extension
thereof;
c. performance bond;
d. prevailing tariff and period as well as the mechanism of tariff
adjustment;
e. rights and obligations of the parties in the PPP Contract including
allocation of risk sharing;
f.

standard of minimum service performance that shall be provided by

the Business Entity and the adjustment mechanism thereof;

g. transfer of shares before the PPP Project operating commercially

(transfer of shares may only be carried out after granting an approval
and based on the criteria determined by the GCA with the provisions
that the said transfer of shares does not delay the schedule of
starting the operation of the PPP Project. It is necessary to consider
that the new shareholder in the Business Entity shall meet the same
prequalification requirements of the previous Business Entity or
shareholders when the procurement of Business Entity is
implemented);
h. sanction in the event the parties fail to meet the provisions in the
PPP Contract;
i.

termination (including accelerated termination) of PPP Contract;

j.

financial statement of the Business Entity in order of the

implementation the PPP Contract, audited annually by a public
accountant office and shall be announced at least in 1 (one) printed
media having national circulation;

k. mechanism of dispute settlement regulated in stages, namely mutual

agreement, mediation and arbitrary/ court;
l.

mechanism of monitoring the Business Entitys performance in

implementing the PPP Project by the Management Unit of the PPP
Contract implementation;

m. utilization and status of ownership of infrastructure assets during the

term of the PPP Contract;
n. transfer of infrastructure assets and/or its management to the GCA
during and/or after the expiration of the PPP Contract;

64

o. force majeure in the form of any matters that may be deemed as

force majeure and the provisions to make improvement due to the
force majeure;
p. representations and warranties of the parties that the PPP Contract
legally binds the parties and is in accordance with the laws and
regulations;
q. the PPP Contract may be made in Indonesian and English in
accordance with the laws and regulations; and
r.

the prevailing law shall be Indonesian laws.

3. The Pre-Feasibility Study Document as intended in number 1 letter b

covers:
a. Executive Summary;
b. Introduction, covering:
1) Background of the Project; and
2) Objectives/ Target.
c. Needs Analysis, covering:
1) Strategic Objectives and Target;
2) Institutional Arrangement;
3) Scope of PPP Project;
4) Output Specifications; and
5) Conclusions.
d. Definition of PPP Project;
e. Market Study;
f.

Technical Profile, covering:

1) Site Preparation;
2) Social Safeguards;
3) Environmental Safeguards; and
4) Conclusions.

g. Evaluation of Project Feasibility, covering:

1)

E
conomy Analysis:
a)

A
ssumptions; and

b)

E
valuation Results.

65

2)

F
inancial Analysis:
a)

A
ssumptions; and

b)

E
valuation Results.

3)

C
onclusions.

h. Options Analysis, covering:

1) Considered options;
2) Evaluation of Technical Options;
3) Recommended Technical Options;
4) Study of Cooperation Form; and
5) Need of Government Support and/or Government Guarantee.
i.

Conclusions and Recommendations;

j.

Enclosures, comprising of:

1) Legal Analysis;
2) Institutional Analysis;
3) Technical Analysis;
4) Site Enablement Analysis;
5) Market Analysis;
6) Economic and Financial Analysis;
7) Risk Analysis;
8) Public Consultation: Opinion of stakeholders;
9) Social Analysis;
10) Environmental Analysis;
11) Statement of in-principle approval of the Government Support
from the Minister/ Head of Institution/ Head of Region (if
necessary);
12) Statement of application to obtain the Government Guarantee
from the BUPI;
13) Draft of Business Entity Procurement Plan; and
14) Draft of Provisions (Terms Sheet) of PPP Contract.

4. Documents of Public Tender as intended in number 1 letter c shall at

least cover:
a. invitation to tender participants;
66

b. general provisions of procurement that shall at least contain:

1) scope of work, number of Bid Documents submitted, and
inspection of the PPP Projects site;
2) contents of Public Tender Documents, elucidation of Public
Tender Documents, and alteration of contents of Public Tender
Documents; and
3) requirements of language used in the Bid Documents, writing of
the bid price, currency of bid and terms of payment, term of bid,
bid bond letter, proposal of alternative bid by tender participant,
form of bid, and signing of bid letter (for tender participant of
foreign legal entity, the Bid Documents shall be prepared in
accordance with the language required in the Public Tender
Documents, while the supporting documents of the Bid
Documents may use the official language of the said foreign
legal entity, under the provisions that the Procurement
Committee may request official confirmation on the said
supporting document).
c. method of submission and signing of the Bid Document envelope,
deadline of the submission of the Bid Documents, treatment for late
Bid Documents, and prohibition for alteration and withdrawal of the
Bid Documents already submitted;
d. procedures of opening the Bid Documents, clarifications of the Bid
Documents, examination of the Bid Documents completion,
arithmetic correction, and conversion into single currency;
e. evaluation system of the Bid Documents covering the criteria,
formulation and procedures of evaluation;
f.

documents of Pre-Feasibility Study of the PPP Project;

g. PPP Contract already finalized by the Procurement Committee

based on the term sheet of the PPP Contract which has been
prepared in the Pre-Feasibility Study Preparation stage;
h. technical specification and drawing;
i.

form of bid letter;

j.

plan of cooperation form based on the results of study on the PPP

Project;

k. plan of project funding and the fund resources thereof;

l.

form of bid bond letter in the form of bank guarantee issued by a

national bank or foreign bank having branches in Indonesia as well
as the amount of bid bond in the form of percentage of the PPP
Projects value;

m. form of performance bond letter in the form of bank guarantee

issued by a national bank or foreign bank having branches in
67

Indonesia as well as the amount of performance bond in the form of

percentage of the PPP Projects value (the amount of performance
bond may be reduced gradually according to the progress of the
PPP Project as regulated in the PPP Contract);
n. confidentiality agreement executed by the tender participant, stating
that the contents of the Bid Documents cannot be used by the tender
participant for the purpose other than participating in the PPP Project
and may not be widely spread to another party without a prior written
approval from the Procurement Committee;
o. statement of confidentiality issued by the Procurement Committee,
declaring that the contents of the Bid Documents may not be widely
spread to another party without a prior written approval from the
tender participant, including the personnel who can have access on
the Bid Documents; and
p. Method of submission of the Bid Documents.
5. The Guarantee Agreement as intended in number 1 letter d, shall meet
the following provisions:
a. The Guarantee Agreement shall be made and carried out based on
the laws and regulations in the infrastructure guarantee in the PPP
project between the Government and Business Entity (the SPV).
b. These documents shall contain a written agreement containing the
rights and obligations between the BUPI and the Guarantee
Recipient in the framework of Infrastructure Guarantee that shall at
least cover:
1) risk share between both parties in accordance with risk
allocation;
2) relevant mitigation effort from both parties to prevent the
occurrence of risks and to reduce the impacts thereof if it occurs;
3) total financial obligation of the GCA in the event infrastructure
risk that is the GCAs liability take places, or procedures to
determine the amount of financial obligations of the GCA in the
event the said amount has not been able to be determined when
the PPP Contract is signed;
4) sufficient period to carry out the GCAs Financial Obligations
including the grace period;
5) reasonable procedures to determine when the GCA has been in
a situation of being unable to perform its Financial Obligations;
6) procedures of settlement of dispute that may arise between the
GCA and the Business Entity in respect of the performance of
the prioritized GCAs financial obligations through alternative
mechanism of settlement of dispute and/or arbitrary institution;
and
68

7) the laws applicable shall be Indonesian laws.

6. The Regress Agreement as intended in number 1 letter e shall meet the
following provisions:
a. These documents contain a written agreement between the BUPI
and the GCA containing the provisions and fulfilment of regress.
b. Regress is the right of the BUPI to bill the GCA for what it has paid
to the Guarantee Recipient in order to fulfil the GCAs Financial
Obligations by calculating the value of time of the said money paid.
(time value of money).
c. The provisions of the Regress Agreement shall at least regulate:
1) terms and conditions pertaining to the settlement of regress
containing at least the period of settlement and payment terms;
2) procedures of the dispute settlement that may arise between the
BUPI and the GCA in respect of the implementation of the
Regress Contract pertaining to the settlement alternative of
dispute and/or arbitrary institution.

69

CHAPTER V
THE PPP CONTRACT MANAGEMENT PHASE
A. General Provisions
1. After the PPP Contract was signed, the GCA shall continue to the phase of
implementing the PPP Contract Management.
2. The PPP Contract Management as intended in number 1 shall be carried out
with the purpose to ensure that the provision of services as well as the
implementation of respective rights and obligations of the GCA and the
Business Entity (the SPV) have been fulfilled in accordance with the
agreement in the PPP Contract.
3. Management of the PPP Contract Implementation as intended in number 1
shall be carried out in 4 (four) period, namely:
a. Pre-construction;
b. Construction;
c. Commercial Operation; and
d. Termination of the PPP Contract.
4. During the implementation of the PPP Contract Management, the GCA shall
ensure that the implementation of the Guarantee Agreement and Regress
Agreement shall not deviate from the provisions previously agreed.
5. In order of supervision and control the course of PPP Contract in accordance
with the provisions already agreed and specified in the PPP Contract, the
GCA shall form a Management Unit.
B. Planning for the Implementation of PPP Contract Management
1.

The Management Unit as intended in letter A number 5 may be formed

as a working unit/ new working unit or use any existing working unit in the
Government/ Regional Government.

2.

The Management Unit as intended in number 1 shall be formed with the

purpose to prepare and draw up the plan as well as to carry out the
Implementation of the PPP Contract Management and to be responsible for
periodically reporting to the GCA in respect of the results of Implementation
of the PPP Contract Management and at the same time to have function in
supervising the implementation of the PPP Contract.

3.

Membership of the Management Unit shall meet the following provisions:

a.

Composition of membership of the Management Unit shall comprise

of the following elements:
1)

The Government;
70

Business Entities;

3)

Professional Associations ;

4)

Academics; and

5)

Users.

b.

In the initial period of implementation the PPP Contract, one of the

members shall constitute a member of the Procurement Committee of
the PPP Project.

c.

members deriving from an Professional Associations shall at least

constitute a Technical Expert and an Audit Expert.

4.

5.

2)

Work Period of Management Unit

a.

the work period of Management Unit shall last until the expiration of
the PPP Contract.

b.

the work period of members of Management Unit shall be

determined by the GCA and membership of the Management Unit shall
be evaluated by the GCA at every end of the work period.

In conducting the planning for the implementation of the PPP Project

Management, the Management Unit shall consider the following:
a.

partnership approach, namely the Management Unit, in conducting

the Implementation Management of the PPP Contract shall be
independent and objective;

b.

monitoring system of provision of services to be carried out by the

Business Entity;

c.

requirements of administrative documents to be fulfilled by the GCA

and the Business Entity that shall be regulated in the PPP Contract;

d.

main tasks of the Management of the PPP Contract to be based on

matters that shall be monitored during the implementation of the PPP
Contract; and

e.
6.

role and responsibilities of the GCA and Business Entity.

Implementation Plan of the PPP Contract Management shall cover the

activity of:
a.

preparation of the work plan based on the mechanism of supervision

of the Business Entitys performance in the implementation of the PPP
Project contained in the PPP Contract;

b.

preparation of the Implementation plan of the PPP Contract

Management carried out by the Management Unit, shall at least cover
the supervision and control on:
1)

obligations or matters to be fulfilled and carried out by the

Business Entity;

71

2)

compliance time of obligations or the said action as well as the

results or target to be achieved;

3)

role and responsibility in the implementation management as

well as the provision of information;

4)

time of commencement of activities of the Implementation

Management of the PPP Contract and other important dates;

5)

funding of all activities of the Management of the PPP Contract;

6)

reporting pertaining to results of implementation management;

7)

date of commencement of implementation of the PPP Contract

and provision of service in certain sectors;

8)

mechanism of comparison and testing if necessary;

9)

framework for independent auditor; and

10)

default and sanction.

c.

p
reparation of training and capacity building for members of the
Management Unit; and

d.

in the contex oft capacity building, the Management Unit may use
consultant services to provide guidance if necessary.

C. Activities Performed during the implementation of the PPP Contract

Management
1. Pre-construction Period
a. Implementing the contract management at the time of pre-construction
shall commence from the time of signing of the PPP Contract until the
financial close.
b. The Management Unit is in charge of:
1) carrying out the implementation management of the compliance of
condition precedent by the Business Entity in the PPP Contract and
the financial close; and
2) coordinating with the work unit in the Ministry of Finance in charge of
fiscal policy for the implementation of provision of the viability
support (viability gap funding) and the BUPI in the implementation of
guarantee in accordance with the prevailing laws and regulations.
2. Construction Period
a. Implementing the contract management at the time of construction shall
commence since the starting of construction until the commercial
operation of the PPP Project.
b. The Management Unit shall perform the implementation management
on:
72

1) design of new facilities or elucidation on the services provided;

2) merging of new facilities with the existing ones;
3) site access and rights to submit problems related to the default and
incapability of the Business Entity to meet the PPP Contract;
4) delay or change of construction schedule;
5) variation of construction design, if requested by the GCA;
6) readiness of work/ operation;
7) monitoring over the compatibility of technical planning and
construction execution;
8) problems pertaining to labour; and
9) risks borne by the GCA.
c. In the event the implementation of the release of viability support and
guarantee in the construction period, the Management Unit shall
coordinate with the working unit in the Ministry of Finance in the fiscal
policy sector and the BUPI.
d. If transfer of shares of the Business Entity takes place prior to the
commercial operation of the Business Entity, the Management Unit shall
carry out activities covering:
1) determination of criteria of transfer of shares by the GCA that
includes:
a) transfer of shares may not delay the starting schedule of
operation of the PPP Project; and
b) the controlling shareholder that constitutes the chairman of
consortium is prohibited to transfer its shares until the
commercial operation of the PPP Project is started;
2) conducting qualification to new prospective shareholders of
Business Entity that shall at least meet the requirements determined
when prequalification of public tender of the Business Entity is
carried out;
3) submitting an approval to the GCA, if the prospective new
shareholder has met all criteria of transfer of shares determined and
met the qualification requirements; and
4) preparing the approval concept of transfer of shares that shall be
signed by the GCA.
3. Period of Operation
a. Implementing the contract management at the time of operation, shall
commence since the PPP Project has been commercially operated until
the expiration of the PPP Contract.
b. The Management Unit shall carry out the implementation of:
73

1) the PPP Contract management; and

2) monitoring of service performance standard to be in accordance with
the PPP Contract.
c. In the event the monitoring of implementation of provision of guarantee
is in the period of operation, the Management Unit shall coordinate with
the BUPI.
4. Termination of the PPP Contract.
a. approaching of the termination of the PPP Contract, the Management
Unit shall consider the following:
1) re-transfer of assets to the GCA (if the form of the PPP Project uses
the transfer option);
2) the PPP Contract shall specifically regulate the project condition
desired when the PPP Contract expired and the PPP Project is
transferred to the GCA; and
3) each sector/ sub sector shall have different characteristics so that
consideration would be necessary on the situation in which the
infrastructure is physically and economically no longer feasible that
rehabilitation or renovation is required.
b. The Management Unit shall evaluate the assets that includes the activity
of:
1) examining and evaluating all components of means/ system included
in the PPP Contract (Evaluation shall be made on the condition or
performance and remaining of life of each component in accordance
with benchmarks agreed);
2) calculating the estimate of costs needed for the operation as well as
routine and non-routine maintenance during the remaining of life;
3) evaluating the availability of spare parts for means and system that
might be technically improper;
4) evaluating the availability of human resources owned the GCA; and
5) evaluating the efficiency of performance management during the
course of the cooperation.
c. The GCA shall prepare and form an Asset Transfer Team in accordance
with the scheme applicable in each infrastructure sector.
d. The Asset Transfer Team may be prepared and formed when the
activities operate commercially if it is required by the related sector.
e. The Asset Transfer Team shall carry out the activity of:
1) preparing and submitting permit to examine/ test all assets of the
PPP Project in order to transfer assets;
2) testing and examining the physical means and all equipment in order
to transfer assets in accordance with the PPP Contract;
74

3) performing necessary administrative action according to the laws

and regulations so that all assets are registered in the name of the
GCA; and
4) preparing and making Minutes of Transfer of Assets signed by the
Business Entity and the GCA.
D. Other Activities During the PPP Contract Management Phase
1. Activities In Relation To Environment
a. In the pre-construction stage, the Management Unit shall use
information in the RKL-RPL or UKL-UPL for the Detail Engineering
Design and technical specifications of updating the RKL-RPL or
UKL-UPL.
b. In the construction stage, the Management Unit shall monitor the
use of the RKL-RPL or UKL-UPL in the engineering procurement
construction contract.
c. In the commercial operation stage, the Management Unit shall
monitor the use of the RKL-RPL or UKL-UPL in the operation and
maintenance contract.
2. Activities In Relation To Government Support and/or Government
Guarantee
During the term of the PPP Contract, the Management Unit shall monitor
and evaluate:
a. the implementation of provision of the viability support (viability gap
funding) by the Ministry of Finance and implementation of the
Guarantee Agreement by the BUPI; and
b. the Regress Agreement between the GCA and the BUPI.
E. Documents Generated During the Contract Management Phase
1. The documents that shall be submitted by the Business Entity to the GCA in
the pre-construction period are:
a. detailed plan if implementation of the PPP Project includes the Detail
Engineering Design;
b. all copies of contracts signed by the Business Entity with the third party
covering the engineering procurement construction contract or operation
and maintenance contract;
c. administration report;
d. report of work progress, particularly in relation with the efforts of the
Business Entity to achieve the financial close; and
e. approval of updating the Environmental Permit;
75

2. Documents that shall be submitted by the Business Entity to the GCA in the
construction period are:
a. administration report;
b. report of work progress (monthly report and annual report and/or special
report);
c. performance report (monthly report and annual report and/or special
report); and
d. annual financial statement.
3. Documents that shall be submitted by the Business Entity to the GCA in the
operation period are:
a. administration report;
b. performance report (monthly report and annual report and/or special
report); and
c. annual financial statement.
4. Documents that shall be submitted by the Business Entity to the GCA when
the PPP Contract expires are:
a. latest financial statement;
b. report of asset evaluation;
c. minutes of examination of assets; and
d. minutes of transfer of assets.

76

CHAPTER VI
THE PROCEDURES TO MANAGE
UNSOLICITED PPP PROJECT PROPOSALS
A. General Provisions
1. A Business Entity may submit Initiative of PPP Project by submitting a
proposal to the Government based on the Procedures to Manage the
Unsolicited PPP Project Proposals to be further evaluated by the
Government prior to being determined as an Unsolicited PPP Project.
2. The Procedures to manage unsolicited PPP project proposals are intended
to:
a. ensure the transparency and competition in the execution of public
tender of the Business Entity in order to carry out a PPP Project based
on an PPP Contract/Concession;
b. enhance the accountability and good governance of the GCA in carrying
out Unsolicited PPP Projects; and
c. ensure the readiness of the Business Entity in preparing an unsolicited
PPP project proposal by providing guidelines pertaining to:
1) where to submit the proposal of the PPP Project;
2) what information and documents are required; and
3) the steps and timeframe for decisions to be made in order to obtain
an approval on the proposal of the PPP Project initiated by the
Business Entity.
3. The management process for Unsolicited PPP Project proposals shall be
carried out in 2 (two) stages, namely:
a. The first stage is the approval process of Unsolicited PPP Project
Proposals and takes place from the time the Prospective Proponent
presents the project to the government until all internal assessments and
approvals are finished and the project is ready to be publicly tendered;
b. The second stage involves a competitive public tender process;
approaches tend to differ in incentives or benefits to the original
Prospective Initiator of the project.
B. The Stage of Approval Process of Unsolicited PPP Project Proposals.
1. The process to obtain an approval from the GCA for Prospective
Proponent to prepare the PPP Project by completing the Pre-Feasibility
Study Document, comprises of 4 (four) activities:
a. A Prospective Proponent shall submit a letter of intent to submit the
proposal for developing a PPP Project to the GCA fulfilled with the
77

Project Concept Document and the Qualification of the Prospective

Proponent Document.
b. The GCA shall evaluate the quality of the Project Concept Doment
under the criteria:
1) not included in the master plan in the related sector;
2) technically integrated with the master plan in the related sector;
3) compatibility with the national/ regional mid-term development
plan;
4) compatibility of the project location with the Regional Spatial
Plan; and
5) connectivity of cross-infrastructure sector and inter-region.
c. The GCA shall evaluate the qualification of a Prospective Proponent
by appraising the capability and track records of the Prospective
Proponent in the preparation, transaction, development and
operation of PPP Projects;
d. The GCA shall make decision:
1) In the event it shall grant an approval to the Project Concept, the
GCA provides an Approval Letter containing:
a) the exclusive rights of the Prospective Proponent during a
certain period for the development of the PPP Project; and
b) obligations to fully deliver the Pre-Feasibility Study
Document and to comply with the procedures of managing
the Unsolicited PPP Project, including to be consistent with
the General Guidelines.
2) In the event the GCA rejects the Project Concept, it shall provide
a Notification Letter to the Prospective Proponent rejecting the
proposal of the Unsolicited PPP Project.
2. The process to obtain an approval from the GCA for a Prospective
Proponent to continue the completion of the Feasibility Study of the PPP
Project and the fulfilment of the Business Entity qualification
requirements to participate in a public tender, includes 3 (three)
activities:
a. The Prospective Proponent shall continue the implementation and
completion of the Pre-Feasibility Study and submit the PreFeasibility Study document to the GCA, including:
1) The Environmental Study that adheres to the AMDAL (KA,
ANDAL, RKL-RPL) mechanism and the UKL-UPL mechanism in
accordance with the laws and regulations in the environmental
protection and management sector.

78

2) The Assessment of Land Acquisition and Resettlement that

produces documents of land acquisition and resettlement
planning.
b. The GCA shall thoroughly evaluate and appraise the Document of
Pre-Feasibility Study, under the criteria of:
1) economically and financial feasible; and
2) not in need of the Government Support in the terms of fiscal
contribution in financial form.
c. Based on the said evaluation, then:
1) In the event the Pre-Feasibility Study obtains an approval from
the GCA:
a) The GCA shall issue an Approval Letter to the Prospective
Proponent to carry out a Feasibility Study and to fulfil
prequalification requirements of public tender of a business
entity;
b) The GCA shall consult with BUPI in the event there is an
indication that a Government Guarantee is needed, and
shall informally convey the availability of the Pre-Feasibility
Study document so that the application process to obtain the
Government Guarantee can be started.
2) In the event under the evaluation of the GCA the Pre-Feasibility
Study still requires improvement, the GCA shall issue a
Notification Letter to the Prospective Proponent to perform the
improvement as requested by the GCA;
3) In the event the improvement of the Pre-Feasibility Study
acquires the approval from the GCA, the GCA shall issue a
Letter of Approval to the Prospective Initiator to complete a
Feasibility Study and to fulfil the prequalification requirements of
public tender of Business Entity; or
4) In the event under the evaluation of the GCA the Pre- Feasibility
study does not meet the said criteria, the GCA shall issue a
Notification Letter to the Prospective Proponent to reject the the
PPP Project proposal.
3. The process for a Business Entity to obtain an approval from the GCA to
be designated as an Original Proponent of Unsolicited PPP project,
includes 5 (five) activities:
a. The Prospective Proponent shall accomplish the completion of the
Feasibility Study Document and fulfilment of Prequalification
Requirements. The Feasibility Study document is the due diligence
document prepared by the Prospective Proponent considered as the
initial bid on the PPP Project;
b. The Prospective Proponent has acquired:
79

1) The SKKL or recommendation of the UKL-UPL, and

Environmental Permit from the Minister, Governor, or Regent/
Mayor in accordance with its authority; and
2) Designation of Project Location from the Governor.
c. The GCA shall thoroughly evaluate and asses the Feasibility Study
Document and the fulfilment of Prequalification Requirements under
the evaluation criteria of:
1) choice of modality;
2) project financing plan and source of fundings; and
3) proposed cooperation bid comprising the schedule, process and
method of evaluation.
d. The GCA shall make the decision:
1) In the event the results of evaluation on the Feasibility Study
Document and prequalification requirements have been
satisfactorily fulfilled, the GCA shall issue:
a) A letter of confirmation for the approval of the proposed PPP
Project as an unsolicited project;
b) A letter of confirmation for the designation of the Prospective
Proponent as the Original Proponent of the unsolicited
project;
c) A letter of confirmation for the provision of compensation
option for the Original Proponent.
2) To formally submit the Pre-Feasibility Study Document to the
BUPI for the implementation of application to obtain Government
Guarantee in accordance with the procedure as required by the
respective laws and regulations.
e. The GCA shall decide on the provision of compensation:
1) In the event the decision of the provision of compensation option
is in the form of purchasing the intellectual property rights of the
Original Proponent therein by the GCA or by the tender winner,
then:
a) The Original Proponent is not allowed to participate in the
bid process as stipulated in the Public Tender Document;
b) The Purchase of the intellectual property rights of the
Original Proponent constitutes the amount of reimbursement
by the GCA or by the tender winner for project development
costs to the Original Proponent,
c) The amount of total project development costs spent by the
Original Proponent shall be determined by the GCA based
on the valuation conducted by an independent assessor
appointed by the GCA;
80

d) The Original Proponent that has obtained compensation in

the form of intellectual property rights purchase, is not
allowed to use or reveal (any information from the various
documents produring during the management process of the
unsolicited project proposal) in part or in whole for any
purpose whatsoever and to anyone without a written
approval from the GCA; and
e) A shareholder of the Original Proponent, whose intellectual
property rights of the unsolicited project proposal has been
bought, is prohibited to participate in the process of public
tender of Business Entity.
2) In the event the form of compensation to be determined by the
GCA is either the provision of added value (bonus system) to the
Original Proponent or right to match system by the Original
Proponent to the best bidder in accordance with results in the
tender process, then:
a) The Original Proponent shall participate in the bid as
required in the Public Tender Documents.
b) All Feasibility Studies including the supporting documents
thereof shall immediately become the property of the GCA
without reimbursement or compensation in any form
whatsoever.
3) On matters regarding the land acquisition, the GCA shall
formally prepare the process of the land acquisition
implementation by first submitting the draft budget for the land
acquisition to the Minister of Finance in order to obtain an
approval from the DPR/DPRD.
A Flowchart of the steps to obtain the GCA approval for the proposal of
Unsolicited PPP Project is summarized in Sub Attachment VI constituting
inseparable part of this Minister Regulation.
C. Implementation of Public Tender for Unsolicited PPP Project
1. Implementation of public tender for Unsolicited PPP Project which is
intended to ensure the transparency and competition as well as to enhance
the accountability and good governance of public tender of unsolicited PPP
Project shall be carried out through a competitive public tender mechanism
in adherence to the principles of:
a. Fair, means that all Business Entities or Foreign Legal Entities
participating in the public tender process shall receive the same
treatment;
b. Open, means that all public tender process shall be open to Business
Entities or Foreign Legal Entities fulfilling the required qualifications;
81

c. Transparent, means that all requirements and information related to the

Provision of Infrastructure including the technical requirements to
administer the selection process, evaluation procedures, and the course
of final decision of the preferred bidder shall be open to all Business
Entities and the public in general;
d. Competitive, means that the selection of Business Entity shall be carried
out through tender process;
e. Accountable, means that results of the selection of Business Entity can
be accounted for;
f.

Partnership based on principles of:

1) Mutual benefits, means to accomplish balanced terms and
conditions that will provide advantages and benefits for both parties
and the community by calculating the basic needs of the community;
2) Mutual needs, means the cooperation carried out on is based on the
terms and conditions considering the needs of both parties; and
3) Mutual supports, means the cooperation is carried out with the spirit
to mutually support each other from both parties.

2. Process of public tender of Unsolicited PPP Project shall be carried out in 2

(two) stages;
a. Planning of Public Tender of Business Entity; and
b. Implementation of Public Tender of Business Entity.
3. Stage of Planning of Public Tender of Business Entity
a. In the stage of Planning of Public Tender of Business Entity, the GCA
shall prepare the Plan of Public Tender of Business Entity after the
Prospective Proponent obtains the designation from the GCA as the
Original Proponent, and after the GCA determines the form of
compensation to be provided to the Original Proponent.
b. The Planning of Public Tender of Business Entity as intended in number
2 letter a comprises of 2 (two) activities,
1) Formation of Procurement Committee; and
2) Preparation of Procurement Plan.
c. The Procurement Committee as intended in letter b point 1) shall be
formed by the GCA by fulfilling the following requirements:
1) The GCA shall form a Procurement Committee with the total
members in odd number of minimally 5 (five) persons comprising of
the chairman, deputy chairman, and secretary who also serves as a
member and several members.
2) Members of the Procurement Committee shall be derived from within
the GCA and may also be derived from the related agency/ working
unit and/ or professionals.
82

3) One of the members of the Procurement Committee shall constitute

a member of the PPP Project Management Team.
4) Members of the Procurement Committee shall at least comprise of
the parties that understand, know and master:
a) procedures of procurement;
b) scope of work of PPP Project;
c) law of agreements or contracts and provisions of laws and
regulations applied in the infrastructure field of the related
sector;
d) technical aspects; and
e) financial aspects.
5) Member of the Procurement Committee is not allowed to have any
Affiliation relationship with members of another Procurement
Committee or with the prospective tender participant, tender
participant or consultant.
6) In the event at the time of implementation of the procurement it is
found out that one of the members of the Procurement Committee
has any Affiliation relationship with a member of another
Procurement Committee or with a prospective tender participant,
tender participant, or consultant, then the said member of the
Procurement Committee shall submit to the GCA pertaining to the
said matter and the GCA shall replace the said member of the
Procurement Committee.
7) Each decision of the Procurement Committee shall be made based
on deliberation to reach consensus.
In the event a decision could not be made through deliberation to reach
consensus then the decision-making shall be carried out based on a
majority vote (each member of the Procurement Committee has 1 (one)
vote that cannot be represented by another member of the Procurement
Committee).
d.

Preparation of procurement plan as intended in letter number 2)

shall be carried out by the Procurement Committee under the following
activities:
1) preparation of procurement schedule and concept of procurement
announcement;
2) preparation of Prequalification Documents;
3) preparation of HPS (owners estimate);
4) preparation of Public Tender Documents; and
5) testing the market interests (market sounding).

83

e. The preparation of Procurement Schedule and Concept of Procurement

Announcement as intended in letter d number 1) shall meet the following
provisions:
1) The Procurement Committee shall prepare the schedule of
implementation of public tender of the Business Entity;
2) Schedule of implementation of public tender of the Business Entity
shall provide sufficient time allocation to carry out all stages of
procurement of Business Entity.
3) The Procurement Committee shall prepare concept of the public
tender announcement.
f.

The preparation of Prequalification Documents as intended in letter d

number 2) shall meet the following provisions:
1) The Procurement
Documents.

Committee

shall

prepare

Prequalification

2) The Prequalification Documents shall at least contain the following:

a) brief elucidation of the PPP Project on the initiative of Business
Entity, and the form of compensation to be provided to the
Business Entity Initiator or Foreign Legal Entity;
b) the form or format of Documents of Expression of Interest;
c) qualification requirements of prospective Tender Participant;
d) schedule of implementation and procedures of prequalification
evaluation; and
e) the GCA shall determine the Prequalification Documents.
g. The preparation of HPS (owners estimate) as intended in letter d
number 3) shall meet the following provisions:
1)

The Procurement Committee shall thoroughly prepare the HPS

(owners estimate) based on the report of pre-feasibility study of the
PPP Project.

2)

Calculation of the HPS (owners estimate) shall cover the costs of

investment comprising of the project costs, interest commission,
assumption of interest and escalation.

3)

Project costs shall comprise of planning costs, construction costs

and supervision costs, operational and maintenance costs as well
as the costs of land acquisition if any.

4)

Interest comprises of the interest during construction and interest

on principal.

5)

The HPS (owners estimate) calculation shall consider matters

affecting the business undertaking of PPP Project in accordance
with the sector characteristics.
84

6)

The HPS (owners estimate) calculation may be conducted by

appointing an independent consultant.

7)

The GCA shall determine the HPS (owners estimate) prepared by

the Procurement Committee.

h. Preparation of Public Tender Documents as intended in letter d number

4) shall meet the following provisions:
1) The Procurement Committee shall prepare the Public Tender
Documents.
2) Public Tender Documents shall at least contain:
a) invitation to Tender Participants;
b) general provisions of procurement containing at least:
(1)

scope of work, number of Bid Documents submitted, and

review of the PPP Projects site;

(2)

content of Public Tender Documents, elucidation of content

of Public Tender Documents, and alteration of content of
Public Tender Documents;

(3)

requirements of language used in the Bid Documents,

writing of the bid price, bid currency and payment method,
period of bid, letter of bid guarantee, proposal of alternative
bids by Tender Participants, bid form, and signing of bid
letter (for Prospective Tender Participant of foreign legal
entity, the Bid Documents shall be prepared in accordance
with the language required in the Public Tender
Documents, while the supporting documents of the Bid
Document may use the official language of the said foreign
legal entity, under the provisions that the Procurement
Committee may request official confirmation on the said
supporting documents);

(4)

method of putting into envelop and marking of envelope of

Bid Documents, deadline of submission of Bid Documents,
treatment to late Bid Documents, and prohibition for
alteration and withdrawal of Bid Documents already
submitted;

(5)

procedures of opening Bid Documents, clarification of Bid

Documents, examination of completion of Bid Documents,
arithmetic correction, and conversion to single currency;

(6)

evaluation system of Bid Documents includes criteria,

formulation and procedures of evaluation adjusted to the
form of compensation provided to the Initiators Business
Entity;

(7)

Documents of Pre-Feasibility Study of the PPP Project;

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(8)

PPP Contract already perfected by the Procurement

Committee based on the term sheet of the PPP Contract
prepared in the Pre-Feasibility Study Preparation stage;

(9)

technical specifications and drawing;

(10) form of letter of bid;

(11) plan of cooperation form based on results of study to the
PPP Project;
(12) project funding plan and the fund source thereof;
(13) form of bid bond letter in the form of bank guarantee issued
by a national bank or a foreign bank having branches in
Indonesia and the amount of bid bond in the form of
percentage of the PPP Projects value;
(14) form of letter of performance bond in the form of bank
guarantee issued by a national bank or a foreign bank
having branches in Indonesia and the amount of
performance bond in the form of percentage of the value of
the PPP Project (the amount of execution guarantee value
may be deducted in stages according to the progress of the
PPP Project as regulated in the PPP Contract);
(15) letter of confidentiality agreement executed by the Tender
Participant, declaring that the content of the Bid Document
may not be used by the Tender Participant for the purpose
other than participating in the procurement of PPP Project
and may not be widely spread to another party without a
prior written approval from the Procurement Committee;
and
(16) the method of submission of the Bid Document.
j.

The market sounding as intended in letter d number 5) shall meet the

following provisions:
1) The GCA may hold the market sounding to obtain inputs and to
know the interest of prospective investor on the PPP Project to be
offered.
2) Market sounding may be conducted in various forms, among others
by performing road show, one-to-one meeting with potential national
and international financial institutions.
3) Market sounding can be conducted more than once.
4) Based on the results of probing of market sounding conducted by
the GCA, the Procurement Committee may make alteration to the
draft of the Public Tender Document.

i.

Use of Consultant Service

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1) The GCA may use the consultant service in charge of providing

inputs and advice to the GCA in carrying out the Planning of
Procurement of Business Entity as well as accompanying or
representing the GCA in performing all activities related to the
Procurement of Business Entity.
2) The appointed consultant by the GCA is not allowed to provide
consultation service and/or accompany and/or provide information to
another party in relation to the PPP Project in which the consultant is
involved.
4. Implementation of Business Entity Procurement
a. Implementation of procurement of Business Entity as intended in number
2 letter b shall be carried out through the public tender mechanism with
the following activities:
1) Prequalification;
2) Bid Implementation based on the compensation option to the
Original Proponent:
a) added value (bonus system) to the Original Proponent; or
b) right to match by the Original Proponent to the best bidder.
3) Preparation of signing the PPP Contract.
b. Prequalification as intended in letter a number 1) includes the following
activities:
1) Prequalification Announcement.
a) The Procurement Committee shall widely announce on the
presence of prequalification of Business Entity;
b) Content of the announcement shall at least contain:
(1) name and address of the GCA that will conduct the
procurement of Business Entity;
(2) brief elucidation pertaining to the PPP Project to be carried
out, including status of the PPP Project that constitutes the
initiative of a Business Entity;
(3) estimated value of the PPP Project and terms of prospective
tender participant; and
(4) the place, date and time to take Prequalification Documents.
c) Prequalification announcement of Business Entity shall be
carried out at least through one printed media having national
circulation and one printed media having circulation in the
location of the PPP Project to be carried out (if possible, also
announced through the related GCAs website).

87

d) For the PPP Project that most likely attracts foreign investors,
the announcement may be done through a printed media having
international circulation.
2) Implementation of Prequalification.
a) Procedures of Prequalification:
(1)

announcement of prequalification for the procurement of

Business Entity shall be carried out by the method as
outlined in number 1);

(2)

the Procurement Committee shall, on the date stipulated in

the prequalification announcement, register the prospective
tender participants;

(3)

the prospective tender participant shall submit a Document

of Expression of Interest as requirements for taking
Prequalification Documents, except the Original Proponent
that has met the prequalification requirements;

(4)

the document of expression of interest shall be conducted

at the same time with the prequalification process;

(5)

in accordance with the schedule determined, prospective

tender participants shall submit the Prequalification
Documents to the Procurement Committee, including the
Original Proponent that despite having met the
prequalification requirements is obliged to re-submit the
Prequalification Documents;

(6)

evaluation and clarification of Prequalification Documents;

(7)

confirmation of list of prospective tender participant passing

the prequalification by the Procurement Committee;

(8)

endorsement of prequalification results by the Procurement

Committee;

(9)

announcement of prequalification results;

(10) submission of challenge / objection by a prospective tender

participant who failed the prequalification to the GCA, shall
be done within 7 (seven) working days since the date of
announcement of prequalification results;
(11) examination and follow up on the challenge against
prequalification results;
(12) re-evaluation by the Procurement Committee in the event
the challenge / objection of prospective tender participant is
proved to be valid;
(13) based on the re-evaluation, the Procurement Committee
shall announce the results of re-evaluation;
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(14) in the event the prospective tender participants succeeding

the prequalification are less than 3 (three), the
Procurement Committee shall conduct a repeated
prequalification:
(a) Prospective tender participants that have passed the
previous prequalification do not necessary take part in
the repeated prequalification process;
(b) The Procurement Committee shall announce the
repeated prequalification by inviting new prospective
tender participants.
(15) In the event after the repeated prequalification was
conducted, and no addition of new tender participant
passing the prequalification or all tender participants
passing the prequalification are still less than 3 (three), the
Procurement Committee shall continue to the stage of
process of Business Entity procurement.
b) Procedures of Prequalification Evaluation
Prequalification covers the evaluation of completion of the
following documents:
(1)

validity of permits owned in order to be able to carry out

business activities thereof;

(2)

deed of establishment and articles of association thereof;

(3)

authority to sign a PPP Contract;

(4)

structure of board of directors and board of commissioners;

(5)

statement letter pertaining to status of the prospective

tender participant declaring that the prospective tender
participant is not being in remission, is not being
bankrupted, the business activity thereof is not being
suspended, and/or not serving a criminal case (if the
prospective tender participant is an Indonesian business
entity, the statement letter shall be signed over a duty
stamp. If the prospective tender participant is a foreign
business entity, the said statement letter shall be legalized
by the public notary and consularized by the Indonesian
embassy or consulate in the country where the said
statement letter was signed);

(6)

experiences in the PPP Project of Provision of similar

Infrastructure;

(7)

ability to provide facilities and equipment as well as

personnel;

(8)

financial statement already audited by a public accountant

office covering last 3 (three) financial years (if the company
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of prospective tender candidate was founded less than 1

(one) year, then the financial statement used is the
financial statement of its holding company);
(9)

letter of financial support from the bank;

(10) letter of support

agreement);

from

shareholders

(sponsorship

(11) availability of special equipment, special experts required,

or certain experience for special/ specific/ high-technology
work; and
(12) In the event the prospective tender participant is a
consortium, the evaluation above shall cover each member
of the consortium and it shall submit a consortium
agreement that clearly shows chairman of the said
consortium. In the event the prospective tender participant
is a limited liability, completion of the above documents
shall also cover the shareholders thereof.
c. Implementation of Bid as intended in letter a number 2) covers the
following activities:
1) Preparation of List of Participants, Submission of Invitation and
Taking of Public Tender Document.
a) The Procurement Committee shall prepare the list of prospective
tender participants passing the prequalification to be formally
endorsed by the GCA.
b) List of prospective tender participants passing the
prequalification shall be announced in the official board or
website of the GCA.
c) Prospective tender participants passing the prequalification,
including the Original Proponent, are invited to take Public
Tender Document.
d) Prospective tender participants passing the prequalification are
entitled to take Public Tender Document from the Procurement
Committee by paying a certain amount as declared in the
Procurement Document.
2)

Elucidation of Procurement
a) Elucidation of procurement shall be carried out at the place and
at the time already determined, and in the presence of
prospective tender participants.
b) The absence of prospective tender participants at the time of
elucidation of procurement cannot be used as the basis to reject
or abort the documents submitted.

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c) In the event of elucidation of procurement, the following shall be

elucidated to the prospective tender participants:
(1) procurement method;
(2) procedures of submission of the Bid Document;
(3) documents that shall be attached in the Bid Document;
(4) procedures of opening of the Bid Document;
(5) method of bid evaluation;
(6) matters that can abort the bid;
(7) concept of PPP Contract;
(8) provisions and method of bid evaluation in respect of price
preference on the use of domestic production; and
(9) amount, period and the party that may issue the bid bond.
d) If deemed necessary, the Procurement Committee may provide
further elucidation by conducting field inspection.
e) Especially for the discussion of the Draftt of the PPP Contract,
the Procurement Committee may hold a meeting with each
prospective tender participant separately (competitive dialogue)
to accommodate feedbacks or comments from each prospective
tender participant to the concept of the PPP Contract.
f)

Every feedback or comment from each prospective tender

participant shall be articulated in the minutes signed by the
Procurement Committee and representative of the prospective
tender participant providing the said feedback or comment. The
Procurement Committee shall guarantee the confidentiality of
information obtained at the separate meeting with each
prospective tender participant (probity).

g) Alteration on the concept of the PPP Contract shall be reported

by the Procurement Committee to the GCA to obtain its
approval.
h) The Procurement Committee shall submit alteration over the
concept of the Cooperation Contract to all prospective tender
participants prior to the deadline of the Bid Document
submission and shall constitute the final concept to be signed by
the Business Entity Winning the Tender (the Preferred Bidder).
i)

Providing of information to questions from the prospective tender

participants pertaining to the Public Tender Document and
answers from the Procurement Committee as well as other
information including alteration of the Public Tender Document
and field inspection, shall be articulated in the BAP (minutes of
pre-bid meetings) signed by the Procurement Committee and by
minimally 1 (one) representative of the tender participants who
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are present, and forming one unit inseparable of the Public

Tender Documents.
j)

If in the BAP referred to in letter i) there are matters or new

provisions or significant alteration that need to be
accommodated, the Procurement Committee shall include them
into the alteration of the Public Tender Document.

3) Submission of Bid Document

a) Method of submission of the bid Document shall be specified in
the Public Tender Document.
b) Method of submission of the Bid Document shall use the 2 (two)envelope method, namely envelope I containing administrative
and technical documents, and envelope II containing financial
documents, then the said two envelopes shall be entered into 1
(one) closed envelope and submitted at the same time to the
Procurement Committee.
c) The Bid Document shall be submitted in accordance with the
place, date and time as specified in the Public Tender
Document.
d) The Bid Document shall be submitted directly by the prospective
tender participant to the Procurement Committee at the place,
date and time already determined in the Public Tender
Document.
e) The Original Proponent that has submitted an Initial Bid
Document while submitting the Feasibility Study Document, shall
submit a Bid Document in accordance with the provisions
specified in the Public Tender Document.
f)

The Procurement Committee is not allowed to change the

deadline of the submission of the Bid Document unless it is
approved by all prospective tender participants that shall be
articulated in the minutes and alteration of the Public Tender
Document.

g) On the deadline of the submission of the Bid Document, the

Procurement Committee shall open a meeting of opening the Bid
Documents, declare before the prospective tender participants
that the time for submitting the Bid Document has been closed in
accordance with the date and time already determined.
h) The Procurement Committee shall reject the Bid Documents that
are submitted in excess to the deadline of the submission of the
Bid Documents or addition of the Bid Documents.
i)

A tender participant may not withdraw if it has submitted the Bid

Document and the said Bid Document has been received by the
Procurement Committee.
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4) Opening the Bid Documents

a) The method of opening the Bid Documents shall be specified in
the Public Tender Document.
b) The Procurement Committee shall ask for the willingness of at
least 2 (two) presence tender participants to act as witnesses.
(1) If there is no representative of tender participant or there is
only 1 (one) representative of tender participant as a
witness, the Procurement Committee shall postpone the
opening of the Bid Documents for 2 (two) hours with the
approval of the presence tender participant.
(2) If the tender participants who are present do not agree to
postpone the opening of the Bid Documents, then the
opening of the Bid Documents shall be continued by
appointing additional witness other than the Procurement
Committee in writing by the Procurement Committee.
(3) If after being postponed for 2 (two) hours there is only 1(one)
or no representative of tender participant as a witness, then
the opening of the Bid Documents shall be continued by
appointing additional witness other than the Procurement
Committee in writing by the Procurement Committee.
c) The Procurement Committee shall inspect the contents of the
box/ place of submission of the Bid Documents and verify the
number of envelopes of the Bid Documents submitted.
d) The Procurement Committee shall inspect, show and read
before the tender participants pertaining to the completion of the
Bid Document of each tender participant, covering:
(1) Letter of bid specifying the period of bid but does not specify
the bid price;
(2) The original bid bond; and
(3) Technical documents and other supporting documents
required in the Public Tender Document.
e) The Procurement Committee may abort the Bid Documents at
the opening of bid, if the submission and completion of the Bid
Documents are not in accordance with the Tender Document.
f)

The Bid Documents shall then be initialized by the Procurement

Committee and 2 (two) representatives of the tender participants.

g) The Procurement Committee shall immediately prepare the

BAPP (minutes of bid opening) to all Bid Documents submitted.
h) After being read clearly, the BAPP shall be signed by the
Procurement Committee and 2 (two) representatives of the
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tender participants appointed by the tender participants who are

present.
i)

In the event there is no tender participant appearing until the

deadline determined, then the BAPP shall be signed by the
Procurement Committee and witnessed by 2 (two) persons other
than the Procurement Committee appointed in writing by the
Procurement Committee.

j)

In the event there is only 1 (one) bid, the BAPP shall be signed
by the Procurement Committee, representative of the tender
participant, and 2 (two) witnesses other than the Procurement
Committee and the tender participant appointed in writing by the
Procurement Committee.

k) Copy of the BAPP shall be submitted to the representative of the

appearing tender participants without being enclosed with the Bid
Documents.
l)

The Procurement Committee is not allowed to receive any

alteration or addition whatsoever to the Bid Documents submitted
by the tender Participants after the deadline of submission of the
Bid Documents.

m) The Bid Documents already received by Procurement

Committee shall become the documents of GCA and are
confidential.
5) Bid Evaluation
a) Bid evaluation shall be conducted in accordance with the
provisions already determined in the Public Tender Document.
b) The method of bid evaluation used shall be adjusted to the type
of infrastructure to be cooperated.
6) Making Minutes of Procurement Results
a) The Procurement Committee shall conclude the evaluation
results articulated in the BAHP.
b) The BAHP (minutes of results of the tender) shall contain results
of the implementation of procurement, including method of
evaluation, formulas used, up to the decision of winner
sequence in the form of list of tender Participants.
c) The BAHP shall be signed by the chairman and all members of
the Procurement Committee or at least two third of the total
members of the Procurement Committee.
d) The BAHP is confidential until the time of signing of the PPP
Contract.
e) The BAHP shall contain the following:
94

(1)

names of all tender participants and bid price and/ or

corrected bid price of each bid participants;

(2)

method of evaluation used;

(3)

formulas used;

(4)

other information deemed necessary pertaining to the

circumstances of implementation of procurement;

(5)

date of making the minutes and number of tender

participants who passed and did not pass in each
evaluation stage;

(6)

decision of sequence of 1 (one) prospective winner and 2

(two) reserves;

(7)

a statement that the procurement is declared to fail and reprocurement shall be conducted if there is not any bid
eligible.

(8)

decision of sequence of 1 (one) prospective winner and 1

(one) reserve, if there are only 2 (two) bidders eligible for
the requirements;

(9)

a statement that the procurement declared to fail and reprocurement shall be made, or the said bidder is
determined as a single prospective bidder if there is only
one eligible tender participant.

(10) The BAHP shall also specify option of compensation form

provided to the Original Proponent in accordance with the
Public Tender Document, including the real results and the
results after the implementation of the said option by the
Original Proponent.
7) Declaration of Tender Winner
a) The Procurement Committee shall declare the prospective
Tender Winner based on the results of evaluation.
b) For the procurement of Business Entity for the unsolicited PPP
Project, the Procurement Committee should have also quantified
the added value (bonus point) for the Original Proponent or
provided a right to to match to the Original Proponent in
accordance with the Public Tender Document.
c) In the event the option of compensation determined by the GCA
is the award of an added value (bonus point), then:
(1)

The maximum of the added value (bonus point) is 10% on

top of the Original Proponents bid evaluation and shall be
explicitly specified in the tender documents.

95

(2)

The value of the bonus point determined by the GCA prior

to the procurement process shall be based on the
evaluation criteria of the related sector.

(3)

If after gaining the bonus point, the total value of the

Original Proponents did evaluation is higher than the best
bidder, then the Procurement Committee shall determine
the Original Proponent as the prospective winner. In the
event it is lower, then the Procurement Committee shall
determine the best bidder as the prospective winner.

d) In the event the option of compensation determined by the GCA

constitutes the provision of the right to match by the Original
Proponent to challenge the best bidder in accordance with the
results of evaluation in the tender process, then:
(1)

Within the maximum of 5 (five) working days since the

determination of the BAHP, the Procurement Committee
shall notify the Original Proponent to exercise the rights to
match.

(2)

The maximum period of time for the Original Proponent to

submit the rights to match is 30 (thirty) working days
commencing since the determination of the best bid from
the public tender of PPP Project determined based on the
evaluation criteria of the related sector.

(3)

In the event the Original Proponent is willing to make

alteration on the bid thereof as intended in letter b), the
Procurement Committee shall make the alteration of the
BAHP and then determine the alteration BAHP.

(4)

In the event the Original Proponent submits the alteration

of bid that may match the best bid, then the Procurement
Committee shall determine the Original Proponent as the
prospective winner of the public tender of the PPP Project.

(5)

In the event the Original Proponent submits the alteration

of bid that cannot match the best bid, then the Procurement
Committee shall determine the best bidder as the
prospective winner of the public tender of the PPP Project.

e) The Procurement Committee shall make and submit report to

the GCA to determine the Tender Winner.
f)

The report as intended in letter e) shall be accompanied by the

proposal of prospective Tender Winner as well as the reserve of
Prospective Tender Winner including the elucidation or other
information deemed necessary as the materials for considering
the decision making.

g) The GCA shall determine the Tender Winner based on the

proposal of the Procurement Committee.
96

h) In the event the GCA has different opinion from the proposal of
the Procurement Committee, the GCA shall discuss it with the
Procurement Committee in order to make decision and it shall
be articulated in the minutes containing the objection and
agreement to be signed by the GCA and Procurement
Committee (the decision takes the form of approving the
proposal of the Procurement Committee or conducting reevaluation which results shall be final).
i)

Supporting data needed to determine the Tender Winner

Business Entity are:
(1) Documents of Public Tender, including the alteration (if any);
(2) BAPP;
(3) BAHP;
(4) Summary of process of procurement and results of
procurement; and
(5) Bid Documents from prospective Tender Winner and reserve
prospective winner.

j)

In the event of delay in determining the Tender Winner and

causing the bid letter / bid bond expired, then confirmation shall
be made to all tender participants to extend the bid letter and bid
bond.

k) In the event the Prospective Tender Winner refuses to extend

the validity of the bid letter and bid bond, the Prospective Tender
Winner may withdraw without being imposed with any sanction.
8) Declaration of Single Bidder
a) The Procurement Committee shall declare a prospective single
bidder if there is only one tender participant participating in the
prequalification and/or submitting Bid Documents and fulfilling
the administrative and technical requirements.
b) The Procurement Committee shall make and submit a report to
the Minister/ Head of Institution/ Head of Region pertaining to
the prospective single bidder.
c) The Minister/ Head of Institution/ Head of Region shall order the
Procurement Committee to conduct negotiation with the
prospective single bidder.
d) The Procurement Committee shall negotiate with the prospective
single bidder by referring to the Tender Documents and the HPS
(owners estimate).
e) If the negotiation with the prospective single bidder causes the
bid/ bid bond to expire, then the prospective single bidder shall
97

immediately extend the bid letter and bid bond prior to the
expiration thereof.
f)

The Procurement Committee shall make and submit the BAHN

and other information to the Minister/ Head of Institution/ Head of
Region.

g) The Minister/ Head of Institution/ Head of Region may refuse or

agree with the results of implementation of negotiation based on
reasonable and accountable grounds.
h) In the event the Minister/ Head of Institution/ Head of Region
agrees with the negotiation, the Minister/ Head of Institution/
Head of Region may determine the prospective single bidder as
the winner.
i)

Supporting Data needed to determine the implementation of

negotiation are:
(1) The Public Tender Documents, including the alteration
thereof (if any);
(2) BAPP;
(3) BAHP;
(4) Summary of tender process and tender results; and
(5) GCAs determination of Single tender participant.

9) Announcement of Tender Winner/ Single Tender Participant Winner

a) Announcement of Tender Winner/ single Tender Participant
Winner shall be announced in the official announcement board
of the GCA and shall be notified by the Procurement Committee
to all single bidder at the latest 2 (two) working days upon
receipt of the approval of determination of the Tender Winner.
b) In the event the single bidder is the only participant that passed
the prequalification, the submission to the single bidder is not
needed.
10) Issuance of Letter of Declaration of Winner
a) The GCA shall issue a Letter of Declaration of the Tender
Winner of Business Entity as the executor of the PPP Project,
under the provisions:
(1) there is no challenge from tender participants; or
(2) the validity of the challenge received by the GCA in the
challenge period turns out to be not provable.
b) The tender participant determined as the winner shall accept the
said decision.

98

c) In the event the tender participant withdraws and the bid period
thereof is still valid, then the said withdrawal may only be carried
out based on the grounds objectively acceptable by the GCA.
d) The GCA shall have the right to disburse the bid bond of a
tender participant that withdraws and it shall be deposited to the
states treasury as the Non-Tax States Revenue or in the event
the GCA is a Head of Region, it shall be deposited to the
regional treasury as the regional revenue.
e) A tender participant declared as a winner that withdraws under
unacceptable grounds and the bid period thereof is still valid,
beside the related bid bond shall be disbursed and become NonTax States Revenue or being deposited to the regional treasury,
the said tender participant shall also be subject to a sanction in
the form of prohibition to participate in activities of public tender
of Business Entity for the PPP Project for 2 (two) consecutive
years.
f.

In the event the Tender Participant as intended in letter e) is a

consortium, then all members of the said consortium either
severally or jointly are subject to a sanction in the form of
prohibition to follow activities of the procurement of Business
Entity for the PPP Project for 2 (two) consecutive years.

g. In the event a tender participant of tender winner of the first

ranked who was declared as a tender winner withdraws, then
the declaration may be made to the second ranked prospective
tender winner, under the provisions:
(1) the said declaration of the second ranked tender winner
shall first obtain the GCAs declaration; and
(2) the period of bid letter of the prospective second ranked
tender winner is still valid or the period thereof has been
extended.
h. In the event the second ranked of prospective tender winner also
withdraws, then the determination of a winner may be made to
the third ranked prospective winner (if any) under the provisions:
(1) The said determination of the tender winner shall first obtain
the determination of the GCA.
(2) The bid letter of the third ranked prospective tender winner is
still valid or the period has been extended.
i.

The GCA is entitled to disburse the bid bond of the second

ranked tender winner and it shall be deposited to the states
treasury as the Non-Tax States Revenue or in the event the
GCA is a Head of Region, it shall be deposited to the regional
treasury as the regional revenue.
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j.

If the second ranked prospective winner withdraws under

reasons objectively unacceptable by the GCA, it shall be subject
to a sanction in the form of prohibition to participate in activities
of public tender of Business Entity for PPP Project for 2 (two)
consecutive years.

k. In the event the third ranked prospective winner withdraws under

unacceptable reasons, it shall be subject to a sanction in the
form of prohibition to participate in activities of public tender of
Business Entity for PPP Project for 2 (two) consecutive years
and the GCA shall have the right to disburse the bid bond of the
third ranked prospective tender winner and it shall be deposited
to the states treasury as the Non-Tax States Revenue or in the
event the GCA is a Head of Region, it shall be deposited to the
regional treasury as the regional revenue.
l.

In the event the first, second and third prospective winners

withdraw; the Procurement Committee shall conduct a repeated
public tender.

m. Declaration Letter of the tender winner shall be made at the

latest 5 (five) working days after the announcement of
determination of the tender winner and shall immediately be
submitted to the tender winner.
n. One of the copies of the Letter of Declaration of Tender Winner
shall be submitted (without attachment) at least to the working
unit that will monitor the implementation of the PPP Contract.
11) Issuance of Letter of Declaration of Single Winner
a) The GCA shall issue a Letter of Declaration of Single Winner of
Business Entity as the executor of the PPP Project based on the
BAHN (minutes of result of negotiation) under the provisions:
(1) There is no protest from tender participants or the truth of
the protest received by the GCA in the protest period turns
out to be not provable or the protest received has surpassed
the protest period.
(2) This Letter of Declaration is not applicable in case the single
bidder is the only participant passing the prequalification.
b) The single winner declared as the executor of the PPP Project
shall accept the said decision.
c) In the event the single winner withdraws and the bid period
thereof is still valid then the said withdrawal may only be done
based on the grounds objective acceptable by the GCA.
d) The GCA is entitled to disburse the bid bond of the single winner
withdrawing and it shall be deposited to the states treasury as
the Non-Tax States Revenue or in the event the GCA is the
100

Head of Region, then it shall be deposited to the regional

treasury as the regional revenue.
e) The single winner withdrawing under unacceptable grounds and
the bid period thereof is still valid, beside the related bid bond
shall be disbursed and become the Non-Tax States Revenue or
shall be deposited to the regional treasury, the said single
winner is also subject to a sanction in the form of prohibition to
participate in activities of public tender of Business Entity for the
PPP Project for 2 (two) consecutive working days.
f)

In the event the single winner is a consortium, then all members

of the said consortium either severally or jointly are subject to a
sanction in the form of prohibition to participate in activities of
public tender of Business Entity for PPP Project for 2 (two)
consecutive years.

g) If the single winner withdraws, the Procurement Committee may

conduct a repeated public tender.
h) Declaration Letter of single winner shall be made at the latest 5
(five) working days after the announcement of the single winner
and shall be immediately submitted to the single tender
participant winner.
i)

One of the copies of the Declaration Letter of Single Bidder shall

be submitted (without attachment of the PPP Contract) at least
to a working unit that shall monitor the execution of the
Cooperation Contract.

The Flowchart of steps for the implementation of procurement (public

tender) for the Unsolicited PPP Project is summarized in Sub
Attachment VII constituting an entirety and inseparable part of this
Minister Regulation.
D. Preparation for the Signing of the PPP Contract
1. Process of establishing a Special Purpose Company(SPC)/ Business Entity
a. A Tender Winner shall establish a Special Purpose Company
(SPC)/Business Entity that shall sign a PPP Contract.
b. The SPC/Business Entity should have been legally established at the
latest within 6 (six) months since the issuance of Letter of Declaration of
the Tender Winner or Letter of Declaration of Single Winner by the GCA.
2. Process of Signing the PPP Contract
a. The PPP Contract shall be signed by the GCA and the SPC/Business
Entity.
b. The PPP Contract shall become effective after conditions precedent in
the PPP Contract have been fulfilled.
101

c. Conditions precedent as intended in number 2 letter b are among others

the issuance of approval of Government Guarantee and obtaining all
permits needed by the Business Entity to carry out its line of business.
d. The financial close shall not constitute conditions precedent in order that
the PPP Contract shall become effective.
e. In the event all conditions precedent have been fulfilled, the GCA shall
issue minutes pertaining to the effectiveness the PPP Contract.
E. Documents
1. Important documents generated from the management process for
Unsolicited PPP Projects are:
a. Documents of Project Concept.
b. Documents of Pre-Feasibility Study.
c. Documents AMDAL (KA ANDAL, RKL-RPL) or already-filled-in UKL-UPL
forms.
d. Documents of land acquisition and resettlement plan.
e. Documents of Feasibility Study.
f.

Tender Documents.

g. Documents of PPP Contract.

h. Documents of Guarantee Agreement.
i.

Documents of Regress Agreement.

2. Documents of Project Concept as intended in number 1 letter a, shall at least

cover:
a. The background of the PPP Project;
b. The description of the PPP Project, covering at least the legal basis,
present condition of the PPP Project, and problems of infrastructure
needs;
c. The benefits of the PPP Project, covering at least concept of the PPP
Project, potential to be cooperated, technical feasibility indication,
financial feasibility indication, potential of obstacles and environment,
results of public consultation as well as the need of project management;
d. The scope of work; and
e. The identification of prospective location and the need of land extent.
3. The Feasibility Study Documents as intended in number 1 letter e shall at
least cover:
a. The proposed engineering design of the PPP Project;
b. The proposed cooperation form (choice of modality);
102

c. The proposed project funding and source of fund; and

d. The proposed cooperation proposition (covering the schedule, process
and method of evaluation).
4. The outline and contents of documents as intended in number 1 letter b,
letter c, letter d, letter f, letter g, letter h and letter i shall consistent with the
provisions as intended in Chapter IV.
STATE MINISTER OF NATIONAL DEVELOPMENT PLANNING/
HEAD OF NATIONAL DEVELOPMENT PLANNING AGENCY

signed
ARMIDA S. ALISJAHBANA
A true copy of its original
Head of Legal Bureau

signed
Emmy Suparmiatun

103

SUB ATTACHMENT I
REGULATION OF STATE MINISTER OF NDP/HEAD OF BAPPENAS
NUMBER 3 OF 2012
ON THE OPERATIONAL GUIDELINES MANUAL FOR THE
IMPLEMENTATION OF PUBLIC PRIVATE PARTNERSHIP IN
THE PROVISIONOF INFRASTRUCTURE

THE PHASING OF PPP PROJECT DEVELOPMENT CYCLE

104

IdentificationandSelection
DeterminaonofPriority

reliminaryStudyofFeasibilityPrestudy
NUMBER 3 OF 2012
ReadinessStudyofCooperationProjectON THE OPERATIONAL GUIDELINES MANUAL FOR THE

SUB ATTACHMENT II
REGULATION OF STATE MINISTER OF NDP/HEAD OF BAPPENAS

IMPLEMENTATION OF PUBLIC PRIVATE PARTNERSHIP IN

THE PROVISIONOF INFRASTRUCTURE

FLOWCHART OF THE PPP PROJECT DEVELOPMENT CYCLE AT THE CENTRAL LEVEL

CompletionofFeasibilityPrestudy

PLANNING
PHASE

Non PPP
Projects

ProjectIdentification&
SelectionandPrioritization

ProposedPPPProjectsof
SubsectorScope,screened
undermulticriteriaanalysis
(MCA)

ProjectPreparationofthe
PPPProjectCycle:

CompletionofPre
Feasibilitystudy:

CONTRACT MANAGEMENT
PHASE

Procurementof
BusinessEntity

PlanningofImplementationManagementof
FinalAppraisalof

PreFeasibility
Procurement
PreliminaryAppraisalofCooperationProject
study
Planning
PreFeasibilitystudy

Draftof
Procurement
AssessmentofProject

ImplmentationManagementofCooperationProject
ProcurementPlan
Implementation
Readiness

Implementation
PlanofthePPP
Contract
Management
Implementationof
thePPPContract
Management

SUB-SECTOR
COVERAGE

GCA

Management
UnitofPPP
ProjectatSub
sectorLevel

PROJECT PREPARATION
TRANSACTION
ProcurementofBusinessEntity
PHASE
PHASE

Sub-sector Project Priority

ListofProjectPriority
SectorwisePPP
projectsarescreened
byMCA

GCAevaluates
feasibility&readiness
oftheproposedPPP
Projects

Requestof
GovernmentSupport
(GS)and/or
Government
Guarantee(GG)

Finalization&
signingofthe
PPPContract

Monitoring
Implementation
ofthePPP
Contract

SECTOR
COVERAGE

Minister/
Institutional
Head&PPP
Node

Potential PPP Projects

Prospective PPP Projects

ListofInfrastructure
ProjectPlan
(ThePPPBook)

Proposed
Projectsof
K/LofPublic
Sector

Non PPP Projects

Ready-to-Offer PPP Projects

Evaluationof
MOFforapplication
ofGSand/or
BUPIevaluationfor
provisionofGG

InprincipleApprovalof
GSfromMOFand/or
letterofintentof
BUPIsguarantee(GG)

Note:
BUPI
MOF
RMU
K/L

:
:
:
:

Monitoringof
Implementationof
Guarantee&
RegressAgreements
byBUPI

NATIONAL COVERAGE

KKPPI

BAPPENAS

MOF/RMU/
BUPI

Business Entity of Infrastructure Guarantee

Ministry of Finance
Risk Management Unit of MOF
Ministry/ Institution

105

SUB ATTACHMENT III

REGULATION OF STATE MINISTER OF NDP/HEAD OF BAPPENAS
NUMBER 3 OF 2012
ON THE OPERATIONAL GUIDELINES MANUAL FOR THE
IMPLEMENTATION OF PUBLIC PRIVATE PARTNERSHIP IN
THE PROVISION OF INFRASTRUCTURE

FLOWCHART OF THE PPP PROJECT DEVELOPMENT CYCLE AT THE REGIONAL LEVEL

PLANNING PHASE

Non PPP
Projects

ProjectIdentification&
SelectionandPrioritizatio

ProposedProjectsofSKPD
afterconsultingwithK/L,
screenedbymulticriteria
analysis(MCA)

ProjectPreparationofthe
PPPProjecCycle:

PreliminaryAppraisalof
PrestudyFeasibility
AssessmentofProject
Readiness

TRANSACTION PHASE

CONTRACT MANAGEMENT
PHASE

Procurementof
BusinessEntity

Procurement
Planning
Procurement
Implementation

CompletionofPre
FeasibilityStudy:

FinalAppraisalof
PreFeasibility
Study
Draftof
ProcurementPlan

Implementation
PlanofPPP
Contract
Management
Implementationof
PPPContract
Management

SKPD COVERAGE

GCA
Management
Unitof
Cooperation
Projectunder
GCA(PPPSKPD
Team)

PROJECT PREPARATION
PHASE

SKPD Project Priority

ListofRegional
ProjectPriority
CrossSKPDprojectsare
screenedunderMCA

GCAevaluates
feasibility&
readinessofPPP
Project

Requestof
Government
Support(GS)
and/or
Government
Guarantee
(GG)

Requestof
Regional
Government
Support

Monitoring
Implementation
ofPPPContract

Finalization
&signingof
thePPP
Contract

CROSS
COVERAGE

RegionalHead
&TKKSD
(PPPNode)

Potential Projects
Prospective Projects

ListofInfrastructure
ProjectPlan
(ThePPPBook)

Proposed
Projectsofthe
PublicSector

Non PPP Projects

Ready-to-Offer Projects

Evaluationof
MOFforapplication
GSand/or
BUPIevaluationfor
provisionofGG

In PrincipleApproval
ofGSfromMOFand/
orissuanceofletterof
intentofBUPIs
Guarantee

Note:
BUPI
MOFu
RMU
SKPD
TKKSD
Tim KPS
Non PK

:
:
:
:
:
:
:

Monitoringof
Implementationof
Guarantee&
RegressAgreements
byBUPI

NATIONAL COVERAGE

KKPPI

BAPPENAS

MOF/RMU/
BUPI

Infrastructure Guarantee State Owned Enterprise

Ministry of Finance
Risk Management Unit of MOF
Regional Official Work Unit
Regional Cooperation Coordination Team
PPP Team
Non-PPP Project

106

SUB ATTACHMENT IV
REGULATION OF STATE MINISTER OF NDP/HEAD OF BAPPENAS
NUMBER 3 OF 2012
ON THE OPERATIONAL GUIDELINES MANUAL FOR THE
IMPLEMENTATION OF PUBLIC PRIVATE PARTNERSHIPS
INTHE PROVISION OF INFRASTRUCTURE

THE PPP PROJECT DEVELOPMENT CYCLE WITH THE SUPPORTING ACTIVITIES

PHASE I:
PLANNING

Project
Identification &
Selection

PHASE II:
PROJ ECT PREPARATION

PHASE III:
TRANSACTION

Bid Implementation
Pr ogr am

Project
Prioritization

Outline
Business
Case

Project
Readiness

Completion of Prefeasibility Study

(Final Business
Case)

Bid Implementation

PHASE IV:
CONTRACT MANAGEMENT

Management
Plan of the
Implementation of the PPP
Agr eement

Management
of the
Implementation of the PPP
Agr eement

Finalization & Signing

PPP Agr eement

Output:
Daftar Prioritas Proyek
Dokumen Studi
Pendahuluan

Output:
Project Preparation
Document

Output:
PPP Agr eement
Guar antee &
. Regr ess Agr eement

Output
Pre-FS Document

GS and/or GG
Confirmation/Inprinciple Approval

Process for Requesting the Required

Government Support and/or Guarantee

ENVIRONMENTAL IMPACT ASSESSMENT BY GCA

Output:
Financ ial
Close; EPC
Contr ac t; O&M
Contr ac t

Output:
Per iodic
Repor ts on
Management
Contr ac t Impl.

Alloc ation, disbur sement,

monitor ing pr oc ess of GS and/or
dmonitor ing & evaluation of
Per janjian Guar antee & Regr ess
Agr eement

EIA BY THE SPV

LANDACQUISITIONPROCESS
INSTITUTION/AGENCY INVOLVED
Government Contracting
Agency (GCA)BAPPENAS
Public Consultation:
Information Dissemination

GCA, KKPPI, BKPM, BAPPENAS, RMU-MOF,

IIGF, BPN, KLH
Public Consultation:
Consultative Interaction

GCA,KKPPI,RMUMOF, IIGF,
BKPM,BAPPENAS,BPN

GCA,RMUMOF, IIGF,BKPM,
BAPPENAS,KLH

Public Consultation:
Market Sounding

107

SUB ATTACHMENT V
REGULATION OF STATE MINISTER OF NDP/HEAD OF BAPPENAS
NUMBER 3 OF 2012
ON THE OPERATIONAL GUIDELINES MANUAL FOR THE
IMPLEMENTATION OF PUBLIC PRIVATE PARTNERSHIPS
INTHE PROVISION OF INFRASTRUCTURE

THE MANAGEMENT PROCESS OF UNSOLICITED PPP PROJECT PROPOSALS

108

SUB ATTACHMENT VI
REGULATION OF STATE MINISTER OF NDP/HEAD OF BAPPENAS
NUMBER 3 OF 2012
ON THE OPERATIONAL GUIDELINES MANUAL FOR THE
IMPLEMENTATION OF PUBLIC PRIVATE PARTNERSHIPS
INTHE PROVISION OF INFRASTRUCTURE

The Government Contracting Agency (GCA)

Prospective Proponent (PP)

STEPS TO OBTAIN THE GCA APPROVAL FOR UNSOLICITED PROJECT PROPOSALS (STAGE I)
Step
2A

Completion
of
Documents
ofPre
Feasibility
study

Performed
byPP
Submitted
toGCA

Step
1A

Preparation
ofProjects
Concept&
PP
Qualification
Peparedby
PP
Submittedto
GCA

Step1B

GCAevaluates
theProject
Conceptofthe
Prospective
Proponent(PP)
withcriteria:
9 notincluded
inmaster
planofthe
relatedsector
9 Technically
shallbe
integrated
withthe
masterplan
intherelated
sector
GCAreviews
PP
qualification

Step1C

IftheProject
Conceptofthe
PProbtainsan
approvalfrom
theGCA:

GCAshall
issueLetter
ofApproval
toprepare
PreFeasibility
study

PPcarriesout
thePre
Feasibility
study
accordingto
theTermsof
Reference
preparedby
theGCA

Step3A

Completionof
Documentsof
FeasibilityStudy
andFulfillment
of
Prequalification
Requirements

Performedby
PP
Submittedto
GCA

Step2B

GCA
thoroughly
evaluates
Documentsof
PreFeasibility
study:

Economically
and
financially
feasible
Needno
Government
Supportin
theformof
fiscal
contribution

Step2C

IfPreFeasibility
studyobtains
approvalfrom
GCA:

theGCAshall
issue
Letterto
Proceedto
FeasibilityStudy
CPcontinues
with
implementation
ofFeasibility
Study

Step3B

GCAthoroughly
evaluates
Documentsof
FeasibilityStudyand
Documentsof
Fulfillmentof
Prequalification
Requirements:
proposedof
cooperationform
proposedof
projectfunding
andfundsource
proposedbid
(including
schedule,process
andmethodof
evaluation)

Step3C

IfDocumentsof
FeasibilityStudyobtains
approvalfromGCA:

GCAshalldeclarePPs
proposalofPPP
Projectasunsolicited
andPPisdeclaredas
theOriginal
Proponent(OP)
GCAdetermines
optionof
compensationforOP
Ifoptionisnot
compensationof
purchaseof
intellectualproperty
rights(IPRs),OPmay
participatein
procurementprocess
IPRsOPbecomesthe
propertyofGCA
withoutprovisionof
compensation

109

SUB ATTACHMENT VII

REGULATION OF STATE MINISTER OF NDP/HEAD OF BAPPENAS
NUMBER 3 OF 2012
ON THE OPERATIONAL GUIDELINES MANUAL FOR THE
IMPLEMENTATION OF PUBLIC PRIVATE PARTNERSHIPS
IN THE PROVISION OF INFRASTRUCTURE

The Government Contracting Agency (GCA)

Business Entity (BE)

STEPS FOR IMPLEMENTATION OF PROCUREMENT (PUBLIC TENDER) FOR THE UNSOLICITED PROJECT (STAGE II)

Step5B
BEsubmits
Expressionof
Interest

Step4
GCAprepares
Plannof
Procurementof
BusinessEntity
competitivelyand
openly
DraftofTender
Documentsshall
explicitlydeclare
optionof
compensationfor
theOriginal
Proponent(OP)
IfnecessaryGCA
maycarryout
marketsounding

Step5A
Expressionof
Interest(EOI)

Annoucement
Evaluationof
EOI

Step7B
BEpassing
prequalification
&theOriginal
Proponent(OP)
participatein
publictender

Step6B
BEmayparticipate
in
Prequalification

Step6A
Prequalification
(RfC)

Annoucement
Implementation
of
Prequalification
Annoucement
ofResultsof
Prequalification

Procurement
Plan

Step7A
Requestfor
Proposal(RfP)

Announcementof
Requestfor
Proposal/RFP
Preparationoflist
ofparticipant,
submissionof
invitation&
takingof
procurement
documents
Elucidationof
Procurement
(competitive
dialogue&
Probity)
Finalization&
submissionof
procurement
documents

Step8B
BEpassing
prequalification
&OPmay
submitbid

Step8A
Submission&
EvaluationofBid
Documents

Submissionofbid
Documents
Openingofbid
Documents
EvaluationofBid
Documentsfrom
BU
MakingMinutes
ofresultsof
procurement

Step9B
Determinationof
Winner:Value
BonusOption

IftheBestBidnot
oftheInitiator,
theInitiatoris
entitledtoobtain
valuebonusof
maximally10%of
thevalue
obtained.
IfthefinalValue
ofInitiatoris
higherthanthe
BestBid,thenthe
OPisdetermined
asthewinner
Ifsmaller,the
BestBidis
determinedasthe
winner

ProcurementImplementation
(PublicTender)

Step9C
Determinationof
Winner:Rightto
MatchOption

IftheBestBidnot
oftheInitiator,
theInitiatoris
entitledtosubmit
bidmatchingthe
BestBid
IftheInitiators
bidcanmatchthe
BestBid,thenthe
OPshallbe
determinedasthe
winner
Ifitcannotmatch,
theBestBidshall
bedeterminedas
thewinner

Step10
Determinationof
Winner

Announcementof
procurement
winner
Protestof
participant
Issuanceofletter
ofdecisionof
Winner

Step11
Preparationof
Signingof
Cooperation
Contract

ProcessofBUBE
Formation(SPC)
Processof
Finalizationof
PPPContract
SigningofPPP
Contract

Finalizationof
PPPContract

110

STATE MINISTER OF NATIONAL DEVELOPMENT PLANNING/

HEAD OF NATIONAL DEVELOPMENT PLANNING AGENCY
Signed
ARMIDA S. ALISJAHBANA

A TRUE COPY OF ITS ORIGINAL

HEAD OF LEGAL BUREAU
Signed
EMMY SUPARMIATUN

111