Illona Zerlinda, - and Faizal Kurniawan, - (2020) Legality Of Guarantee Ban Clause Within Build Operate Transfer Project By Local-Owned Enterprises. Palarch’s Journal Of Archaeology Of Egypt/Egyptology, 17 (3). pp. 2013-2024. ISSN 1567-214X

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Abstract

In the process of implementing development, somehow a government has not insufficient fund to build infrastructures which have already been planned. During the process, the existence of private parties are required to be investors which are able to fund the government’s infrastructure plan through BOT (Build, Operate, Transfer). It is an agreement conducted by government’s policy with the private parties which create a public policy as the object of agreement. This study applied a normative research using statue approach and conceptual approach. The practical implication of this study is expected to be means of consideration to resolve the law-related problems of Build Operate Transfer (BOT), particularly concerning on the guarantee ban done by cooperation partner. BOT is a cooperative contracts between government and private party. The BOT contracts becomes one of the alternative contracts which could be applied by government for developing infrastructure whose development requires huge fund and the government has no capabiliy to fund it. Nevertheless, the legality of clause pertaining to guarantee and agreement is the result of the establishment of BOT.

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