Government Assignment of Contracts to State-Owned Enterprises to Provide Infrastructure: Indonesia’s Experience
DOI:
https://doi.org/10.32890/uumjls2024.15.2.11Keywords:
State-Owned Enterprises (SOEs), Government’s Assignment of Contracts, Public Procurement, Public–Private Partnership, Infrastructure DevelopmentAbstract
This paper aims to evaluate the peculiarities of a mechanism utilised by the Indonesian government to conduct infrastructure development, that is, the government’s assignment of contracts to state-owned enterprises (SOEs). This mechanism differs from public procurement or public-private partnership. This paper raises three questions: (1) What are the advantages and disadvantages of employing government assignment of contracts to SOEs? (2) What should be done to prevent the disadvantages? and (3) What lessons can be learned by other countries from the Indonesian experience? This paper employs qualitative legal research. It starts by analysing public satisfaction and dissatisfaction as reflected in the news, literature and interviews. The legal causes of dissatisfaction which are basically the problematic regulations, are then analysed. Finally, the legal principles and legal concepts enshrined within the regulations are examined to seek legal solutions. The advantages of the government’s assignment of contracts to SOEs are to simplify the tender process and to enable the government to quickly provide infrastructure. Nonetheless, the private sector feels aggrieved because the regulations that dictate when a project may be contracted to an SOE are unclear, and public funding is predominantly circulated among the SOE groups. To address these problems, the government should adhere to the globally recognised principles of equality and accountability and the concepts of competitive neutrality and the right to development. The bittersweet Indonesian experiences maybe not only the refinement of the Indonesian law and policy, but also their use as food for thought for any country considering infrastructure development.
References
Aco, H. (2022, February 24). Tanggapi hasil survei Litbang kompas, warga sebut Kinerja Jokowi memang memuaskan. Tribunnews. Com. https://www.tribunnews.com/metropolitan/2022/02/24/ tanggapi-hasil-survei-litbang-kompas-warga-sebut-kinerja-jokowi-memang-memuaskan
Addink, H. (2019). Good governance: Concept and context. Oxford University Press.
Asshidiqie, J. (2018). Konstitusi keadilan sosial. Kompas.
Bilge, M. E., Karasu, R., & Ibrahim, M. A. K. (2019). Right to development and emotional exhaustion: The case of healthcare institutions in Turkey. UUMJLS, 10(2), 157–182. https://e-journal.uum.edu.my/index.php/uumjls/article/view/ uumjls.10.2.2019.6725
Bland, B. (2020). Man of contradictions: Joko Widodo and the struggle to remake Indonesia. Penguin Random House.
BUMN. (2024). Klaster usaha. BUMN. https://www.bumn.go.id/ portofolio/klaster-usaha
Calderón, C., & Servén, L. (2004). The effects of infrastructure development on growth and income distribution. In Policy Research Working Paper (3400; Policy Research Working Paper, Issue 3400). World Bank. https://openknowledge. worldbank.org/handle/10986/14136
Calderón, C., & Servén, L. (2014). Infrastructure, Growth, and Inequality: An Overview (7034; Policy Research Working Paper). World Bank Group. https://openknowledge.worldbank. org/handle/10986/20365
CNN. (2019, April 1). Bank Dunia kritik pedas infrastruktur Jokowi. CNNIndonesia.Com. https://www.cnnindonesia.com/ ekonomi/20190103124543-532-358206/bank-dunia-kritik-pedas-infrastruktur-jokowi
Davidson, J. S. (2021). Opposition to privatized infrastructure in Indonesia. Review of International Political Economy, 28(1), 128–151. https://doi.org/10.1080/09692290.2019.1668461
Dekel, O. (2008). The legal theory of competitive bidding for government contracts. Pub. Cont. L.J, 37(2), 237–268. https://www.jstor.org/stable/25755452
Dirgantara, G. (2021, December 19). Survei KedaiKOPI: Pembangunan infrastruktur wujud keberhasilan Jokowi. Antaranews. Com. https://www.antaranews.com/berita/2594737/survei-kedaikopi-pembangunan-infrastruktur-wujud-keberhasilan-jokowi
Dirgantara, G. (2022, January 22). Gapensi berharap pemerintah libatkan kontraktor lokal. Antaranews.Com. https://www.antaranews.com/berita/2659485/gapensi-berharap-pemerintah-libatkan-kontraktor-lokal
Hatta, M. (2015). Keadilan sosial dan kemakmuran (E. Salim, Ed.). LP3ES.
Hofstede-insights. (2024). Country comparison tool: Indonesia. Hofstede-Insights.Com. https://www.hofstede-insights.com/ country-comparison-tool?countries=indonesia
IDX Channel. (2021, April 10). 5 Fakta keuangan BUMN Karya keuangannya berdarah-darah. IDXchannel.Com. https://www.idxchannel.com/economics/5-fakta-bumn-karya-keuangannya-berdarah-darah
Jannah, S. M. (2019, October 13). Kontraktor lokal babak belur saat BUMN dominasi proyek negara. Tirto.Id. https://tirto.id/ kontraktor-lokal-babak-belur-saat-bumn-dominasi-proyek-negara-ejCF
Julita, L. (2019, August 1). Wah, Sri Mulyani Sindir dominasi BUMN! CNBCIndonesia.Com. https://www.cnbcindonesia. com/news/20190801183042-4-89234/wah-sri-mulyani-sindir-dominasi-bumn
Kesowo, B. (2020, January 9). BUMN. Kompas.Id. https://www. kompas.id/baca/opini/2020/01/09/bumn
Kim, K. (2021). Indonesia’s restrained state capitalism: Development and policy challenges. Journal of Contemporary Asia, 51(3), 419–446. https://doi.org/10.1080/00472336.2019.1675084
Kompas.com. (2014, December 18). Kontraktor BUMN dilarang garap proyek kecil swasta bersorak. Kompas.Com. https://money.kompas.com/read/2014/12/18/135939526/Kontraktor. BUMN.DIlarang.Garap.Proyek.Kecil.Swasta.Bersorak
Lanneau, R. (2017). Competitive Neutrality. In Encyclopedia of Law and Economics (pp. 1–4). Springer New York. https://doi.org/10.1007/978-1-4614-7883-6_646-1
Lin, D.-Y. (2014). Can public private partnerships solve Indonesia’s infrastructure needs? https://www.mckinsey.com/featured-insights/asia-pacific/can-ppps-solve-indonesias-infrastructure-needs
Majalah Tempo. (2022, September 25). Seret modal minim jaminan. Majalah Tempo. https://majalah.tempo.co/read/ekonomi-dan-bisnis/167010/bagaimana-waskita-karya-kesulitan-modal-seusai-restrukturisasi-kredit?utm_source=newsletter&utm_ medium=email&utm_campaign=20220925_mbm
Mantalean, V., & Meiliana, D. (2022, February 21). Survei Litbang Kompas: Tren kepuasan terhadap Jokowi Maruf melonjak di kalangan bukan pemilih. Kompas.Com. https://nasional. kompas.com/read/2022/02/21/10315551/survei-litbang-kompas-tren-kepuasan-terhadap-jokowi-maruf-melonjak-di
Mashabi, S., & Meiliana, D. (2020, March 2). Kasus Suap Mantan Dirkeu AP II, Direktur PT INTI Divonis 2 Tahun Penjara. Kompas. Com.https://nasional.kompas.com/read/2020/03/02/22304811/ kasus-suap-mantan-dirkeu-ap-ii-direktur-pt-inti-divonis-2-tahun-penjara
Nasution, A. D. (2016a, April 6). Kadin minta swasta dilibatkan garap proyek infrastruktur strategis. Katadata.Co.Id. https://katadata. co.id/yurasyahrul/berita/5e9a56d30d152/kadin-minta-swasta-dilibatkan-garap-proyek-infrastruktur-strategis
Nasution, A. D. (2016b, April 6). Kadin minta swasta dilibatkan garap proyek infrastruktur strategis. Katadata.Co.Id. https://katadata. co.id/yurasyahrul/berita/5e9a56d30d152/kadin-minta-swasta-dilibatkan-garap-proyek-infrastruktur-strategis
Nasution, A. D. (2017, October 3). Garap proyek infrastruktur, swasta minta jaminan perpres. Katadata. Co.Id. https://katadata.co.id/ safrezifitra/berita/5e9a56310e6a9/garap-proyek-infrastruktur-swasta-minta-jaminan-perpres?page=2
Negara, S. D. (2016). Negara - Indonesia’s infrastructure development under the Jokowi administration. Southeast Asian Affairs, 145–166. https://www.jstor.org/stable/10.2307/26466924
Novalius, F. (2017, October 17). Dilarang garap proyek di bawah Rp100 Miliar, PUPR: BUMN juga enggak minat. Okezone.Com. https://economy.okezone.com/read/2017/10/17/320/1797114/ dilarang-garap-proyek-di-bawah-rp100-miliar-pupr-bumn-juga-enggak-minat
OECD. (2009). State owned enterprises and the principle of competitive neutrality.https://www.oecd.org/daf/competition/46734249. pdf Office of the United Nations High Commissioner for Human Rights [OHCHR]. (2016). Frequently Asked Questions on the Right to Development. https://www.ohchr.org/sites/default/files/ Documents/Publications/FSheet37_RtD_EN.pdf
Pefindo. (2022, February). SOE infrastructure ratings in focus: Two years into the pandemic. Pefindo. https://pefindo.com/fileman/ file/1156
Prabowo, D., & Alexander, H. B. (2018, March 14). Proyek infrastruktur dikuasai BUMN, kontraktor swasta gulung tikar. Kompas.Com. https://properti.kompas.com/read/2018/03/14/220449821/ proyek-infrastruktur-dikuasai-bumn-kontraktor-swasta-gulung-tikar
Prasetyo, B. (2018, October 24). Presiden minta Radin Inten II sebagai bandara internasional. Antaranews.Com. https://pemilu. antaranews.com/berita/771314/presiden-minta-radin-inten-ii-sebagai-bandara-internasional
Prasongko, D. (2017, October 14). Responden empat survei memuji program infrastruktur Jokowi. Tempo.Co. https://nasional. tempo.co/read/1024592/responden-empat-survei-memuji-program-infrastruktur-jokowi
Purnamasari, D. D., Baysari, I., Susilo, N., & Kustiasih, R. (2022, February 21). Survei Litbang “Kompas”: Tingkat kepuasan publik pada pemerintahan Jokowi capai angka tertinggi. Kompas.Id. https://www.kompas.id/baca/polhuk/2022/02/20/ kepuasan-publik-jadi-modal-menyongsong-tahun-politik
Puspa, A. W. (2020, August 6). Dulu Jokowi dorong banyak bandara internasional, sekarang? Bisnis.Com. https://ekonomi.bisnis. com/read/20200806/98/1275976/dulu-jokowi-dorong-banyak-bandara-internasional-sekarang
Pusparisa, Y. (2021, March 1). Survei pembangunan infrastruktur menjadi kinerja pemerintah yang paling memuaskan. Katadata. Co.Id. https://databoks.katadata.co.id/datapublish/2021/03/01/ survei-pembangunan-infrastruktur-menjadi-kinerja-pemerintah-yang-paling-memuaskan
Ramli, R. R., & Sukmana, Y. (2020, August 7). Jokowi pertanyakan RI punya 30 Bandara Internasional, ini respons Kemenhub. Kompas. Com. https://money.kompas.com/read/2020/08/07/183853026/ jokowi-pertanyakan-ri-punya-30-bandara-internasional-ini-respons-kemenhub
Ray, D., & Ing, L. Y. (2016). Addressing Indonesia’s infrastructure deficit. Bulletin of Indonesian Economic Studies, 52(1), 1–25. https://doi.org/10.1080/00074918.2016.1162266
Robison, R., & Hadiz, V. R. (2017). Indonesia: A tale of misplaced expectations. Pacific Review, 30(6), 895–909. https://doi.org/1 0.1080/09512748.2017.1306578
Salim, E. (2015). Keadilan dan kemakmuran. In E. Salim (Ed.), Keadilan Sosial dan Kemakmuran (pp. xxix–xxx). LP3ES.
Santika, E. F. (2023, December 18). Jumlah BUMN turun jadi 77 Perusahaan pada 2022. Ini jenisnya. Katadata.Co.Id. https://databoks.katadata.co.id/datapublish/2023/12/18/jumlah-bumn-turun-jadi-77-perusahaan-pada-2022-ini-jenisnya
Setjen M. K. (2010). Naskah komprehensif perubahan UUD 1945: Buku VIII keuangan, perekonomian nasional, dan kesejahteraan sosial. Kesekretariatan Jenderal Mahkamah Konstitusi.
Setkab. (2022, June 14). Pembukaan Rakornas pengawasan intern pemerintah tahun 2022. Setkab.Go.Id. https://setkab.go.id/ pembukaan-rakornas-pengawasan-intern-pemerintah-tahun-2022-di-istana-negara-provinsi-dki-jakarta-14-juni-2022/
Sidik, S. (2019, February 13). LRT Palembang sepi penumpang, apa pembelaan kemenhub? CNBCIndonesia.Com. https://www.cnbcindonesia.com/news/20190213205136-4-55409/lrt-palembang-sepi-penumpang-apa-pembelaan-kemenhub
Siregar, E. (2019, August 9). BUMN Dominasi proyek pemerintah, swasta minta bagi-bagi kue. CNBCIndonesia.Com. https://www.cnbcindonesia.com/news/20190809201643-4-91078/ bumn-dominasi-proyek-pemerintah-swasta-minta-bagi-bagi-kue
Siregar, R. A. (2019, February 11). LRT Palembang dianggap sepi, Menhub: Angkutan Massal ada proses. Detik.Com. https://finance.detik.com/berita-ekonomi-bisnis/d-4423962/lrt-palembang-dianggap-sepi-menhub-angkutan-massal-ada-proses
Sofya, A. (2019, May 14). Presiden Jokowi dorong perubahan status Bandara Abdulrachman Saleh Malang jadi Bandara Internasional. Tribunnews. https://madura.tribunnews. com/2019/05/14/presiden-jokowidorongperubahan-status-bandara-abdulrachman-salehmalang-jadibandara-internasional
Uly, Y. A. (2018, March 14). 37.000 Kontraktor swasta bangkrut dalam 3 tahun gara-gara tak dibayar hingga no job. Okezone.Com. https://economy.okezone.com/read/2018/03/14/470/1872766/37-000-kontraktor-swasta-bangkrut-dalam-3-tahun-gara-gara-tak-dibayar-hingga-no-job
Ulya, F. N., & Sukmana, Y. (2019, November 14). Pengusaha swasta mengeluh, anak-cicit BUMN lahap proyek konstruksi. Kompas. Com. https://money.kompas.com/read/2019/11/04/200439526/ pengusaha-swasta-mengeluh-anak-cicit-bumn-lahap-proyek-konstruksi
UNCITRAL. (2001). UNCITRAL: Legislative guide on privately financed infrastructure projects. United Nations. https://uncitral.un.org/sites/uncitral.un.org/files/media-documents/ uncitral/en/pfip-e.pdf
UNODC. (2009). Technical Guide to the United Nations Convention Against Corruption. United Nations. http://www.unodc.org/ documents/corruption/Technical_Guide_UNCAC.pdf
UNODC. (2013). Guidebook on Anti-corruption in Public Procurement and the Management of Public Finances: Good Practices in Ensuring Compliance with Article 9 of the United Nations Convention Against Corruption. United Nations. https://www.unodc.org/documents/corruption/Publications/2013/ Guidebook_on_anti-corruption_in_public_procurement_and_ the_management_of_public_finances.pdf
Warburton, E. (2016). Jokowi and the new developmentalism. Bulletin of Indonesian Economic Studies, 52(3), 297–320. https://doi.or g/10.1080/00074918.2016.1249262
Wiangga, L. S. (2018, May 28). Proyek infrastruktur dikuasai BUMN, Gapensi minta jatah. Bisnis.Com. https://ekonomi.bisnis.com/ read/20180528/45/800415/proyek-infrastruktur-dikuasai-bumn-gapensi-minta-jatah-
Wibowo, R. A. (2017). Preventing maladministration in Indonesian public procurement: A good public procurement law approach and comparison with the Netherlands and the United Kingdom. Utrecht University. https://dspace.library.uu.nl/bitstream/ handle/1874/347986/Wibowo.pdf?sequence=1
Wibowo, R. A. (2019). Promoting competition through the principle of equality: A solution to challenge the idea of protectionism in Indonesian Soes tender processes. In A. Buijze, P. Langbroek, & R. Widdershoven (Eds.), Goed Bestuurs in Perspectief (pp. 97–109). Wolters Kluwer.
Wibowo, R. A. (2021). Kontrak pemerintah: Pengantar untuk diskusi konseptual. In R. A. Wibowo (Ed.), Kontrak Pemerintah: Konsep, ragam, perkembangan regulasi, dan kajian putusan (pp. 1–36). Kencana.
Wibowo, R. A. (2022, September 26). The quest for research-based policy in Indonesia. TheJakartaPost.Com. https://www.thejakartapost.com/opinion/2022/09/26/the-quest-for-research-based-policy-in-indonesia.html
Wibowo, R. A., Perdana, R., & Putri, K. D. N. (2021). Konsep pembagian resiko dan perkembangan pengaturannya di KPBU. In R. A. Wibowo (Ed.), Kontrak Pemerintah: Konsep, Ragam, Perkembangan Regulasi, dan Kajian Putusan (pp. 79–116). Kencana.
World Bank. (2014). Indonesia: Avoiding the trap.
World Bank. (2018). Infrastructure sector assessment program. www. worldbank.org
World Bank. (2019, January 7). Pernyataan Bank Dunia. World Bank. https://www.worldbank.org/in/news/statement/2019/01/07/ world-bank-statement
Published
Issue
Section
How to Cite
Research impact
Harvested 2026-09-22Counts differ between services because each indexes a different body of literature. None of them is the whole picture.
