IMPLEMENTATION OF TRIPARTITE TURNKEY CONTRACT ON CONSTRUCTION AND FINANCING OF 500 kV TRANSMISSION PROJECT IN SUMATRA (Package 1 & 2)

Abstract

The Sumatra 500 kV Transmission Project package 1 & 2 is a National Strategic Project (PSN) which will later become part of the ASEAN Grid Connection after being fully connected. As a high-value PSN project involving BUMN (Stated Owned Company), it is necessary to handle the financial aspects of Nations Capital Participation (PMN) to have a maximum economic impact while maintaining the implementation of Good Corporate Governance (GCG). In power construction projects, EPC contract standards have been widely used. In the condition that the contractor must finance the implementation of the construction work until it is completed first before getting payment from the Project Owner, turnkey contracts are also widely known. By accommodating various requirements desired by various interested parties to achieve the project objectives, the involvement of a third party from the banking element is required, so it is referred to as a tripartite turnkey contract. The results of this study show that the implementation of the tripartite turnkey contract in the construction and financing of the Sumatra 500 kV transmission project (packages 1 and 2) has met various aspects of the parties' expectations for the fulfillment of the balance of rights and obligations, as well as the risks of each party, as a recommendation for stakeholders regarding the implementation of the tripartite turnkey contract in future infrastructure projects.