New Regulation on Solicited PPP: Improvements to Procurement Procedure

In November 2018, the National Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah or "LKPP") amended the regulation governing the procedure on public-private partnership ("PPP"). The previous procedure for procurement of Implementing Business Entity in solicited PPP under Head of LKPP Regulation No. 19 of 2015 on Procedure for Procurement of Implementing Business Entity in PPP for Provision of Infrastructure ("LKPP Regulation 19/2015") was considered to be incomplete by many PPP participants. Therefore, the new procedure under LKPP Regulation No. 29 of 2018 on Procedure for Procurement of Implementing Business Entity in Solicited PPP for Infrastructure Provision ("LKPP Regulation 29/2018") is aimed to provide more clarity for PPP participants. That being said, procedures for: (i) procurement of Implementing Business Entity in unsolicited PPP; and (ii) procurement of Preparation Agency are still subject to LKPP Regulation 19/2015.