Assignments Method in Infrastructure Development: Opportunities And Challenges

Abstract

. Infrastructure, has become a pride in President Joko Widodo's government. Various policies were decided to support infrastructure development including the method of Public Private Partnership (PPP) as outlined in Presidential Regulation No. 38 of 2015. However, the provisions regarding the selection of an Implementing Business Entity (IBE) of infrastructure that should have been carried out only through 2 (two) methods, namely auction or direct appointment, in practice were broken by the government itself by using other methods, namely assignments, as what happened in the construction of Light Rail Transit infrastructure integrated (LRT) for Jakarta, Bogor, Depok and Bekasi. Of course this becomes a problem that must be clarified, regarding the opportunity to do the assignment method, and what conditions makes the government use the assignment method to select the implementing business entity of infrastructure. Then, what are the potential conflicts of interest in the assignment method? This problem is solved through research based on a normative approach using the secondary data.