Document background
The Build Own Transfer Agreement is a crucial document in Indonesian infrastructure development, typically used for large-scale public infrastructure projects under the public-private partnership (PPP) framework. It enables private sector participation in public infrastructure development while ensuring eventual public ownership. The agreement must comply with Indonesian regulations, particularly Presidential Regulation No. 38 of 2015 on PPPs and Law No. 2 of 2017 on Construction Services. It details the entire project lifecycle, including construction rights, operational responsibilities, revenue arrangements, and transfer mechanisms. This type of agreement is particularly relevant for projects where the government seeks private sector expertise and financing while maintaining long-term public ownership of essential infrastructure. The document includes comprehensive provisions for risk allocation, performance standards, regulatory compliance, and dispute resolution mechanisms tailored to the Indonesian legal context.
