With regards to the emphasis on the proper risk allocation, the Risk Allocation Guideline, which has been released annually, becomes very essential as a key reference in assessing and allocating risks for the purpose of guarantee provision, as mandated by the regulation.
The Risk Allocation Guideline is also intended to be a key reference for:
- Contracting Agencies in developing the PPP Contracts as well as the Guarantee Application Package (GAP) to be submitted to IIGF for guarantee provision; and
- Investors and financiers in assessing their potential investment and financing for PPP projects in Indonesia.
This Guideline can be utilised in each phase of PPP since the planning, preparation, transaction and until the project implementation. Nevertheless, it is important to note that during implementation, some risk allocations may have variations to what have been outlined in this Guideline, as they are subject to actual project and/or sector specific conditions, or agreed commercial position between the parties.
This Guideline is continuously improved and reviewed periodically, minimum once for every 12 months, by way of gathering feedbacks from key stakeholders as has been conducted when developing this Guideline.
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