Implementation Of Public-Private Partnership Of Lhok Guci Project Viewed From The Perspective Of Investment Law And Financing Law

Abstract

This research aims to analyse the implementation of the Lhok Guci Project Business Entity Cooperation Viewed from the Perspective of Investment Law and Law This research itself uses normative and empirical juridical research with a statutory and conceptual approach. The results of this study indicate that the Lhok Guci PPP is included in direct investment and in connection with its own financing the government provides guarantees in order to ensure the smooth implementation of the PPP project. The conclusion of this research is that PBU is classified as a direct investment with a return of capital through two methods: User Charge and Availability Payment. Lhok Guci PPP uses the Availability Payment method. PPP is also integrated in Indonesia's financing legal framework, supported by Presidential Regulation No. 38/2015 and Minister of PPN Regulation No. 2/2020. Government support in various facilities, from project preparation to financial close, shows a strong commitment to improving infrastructure and community welfare through PPP. The suggestions in this study are that the government and business entities should finalise all aspects related to the implementation of PPP, including the legal framework, guarantees, profit return mechanisms, land acquisition, and others. This is important so that PPP projects can run smoothly and in accordance with regulations, and provide benefits to the Indonesian people as a whole without harming or violating their rights.