Journal of Legal, Ethical and Regulatory Issues (Print ISSN: 1544-0036; Online ISSN: 1544-0044)


Regress Rights as a Form of Warranty the Indonesian Government in Financing Infrastructure Development

Author(s): Anita Kamilah

For the Government of Indonesia, the availability of adequate infrastructure is one of the main prerequisites for achieving sustainable economic growth which has an impact on increasing people's income, as well as equitable national development. Limited government funds in financing infrastructure development prompted the Indonesian government to partner with the private sector through the Private Public Partnership (PPP) scheme by providing a guarantee of certainty due to the risk of infrastructure development through the Right to Regress. This article aims to analyze the legal relationships of the parties involved in guaranteeing the financing of infrastructure development, the location and position of regression rights in the Indonesian national guarantee law, as well as the claim of the Right to Regress. The conclusion in this study is that there are three parties involved in underwriting the financing of infrastructure development, namely the Person in Charge for Cooperation Projects (PJPK), Business Entities and PT. Indonesia Infrastructure Guarantee. Then, the Right to Regress is included in the Personal Guaranty, and gives PT. PII has the right to claim against the PJPK for the payment of the guarantee that has been paid to the Business Entity.

Get the App