NATIONAL INTEREST AS A BASIS OF THE GOVERNMENT COOPERATION WITH PRIVATE COMPANIES IN PROVIDING THE PALAPA RING INFRASTRUCTURE

Abstract

The purpose of this study to analyze the criteria of national interest that become the basis of the
cooperation agreement between the Indonesian Government and private companies as well as the
characteristics of the deal in providing the Palapa Ring infrastructure. This study is normative
research that applies the statute approach and conceptual approach. The legal materials used
comprise both primary and secondary materials. The results show that the national interest in
Public-Private Partnership (PPP) has several criteria. First, the production branch, which involves
people's lives is undoubtedly the object of the cooperation between the Government and private
companies. Second, there are mandatory rules that are closely related to the public order in the
infrastructure provision with private companies. The Indonesian Government attempts to meet the
public needs in the telecommunication sector by establishing the Palapa Ring project to prosper
the Indonesian people with technological capabilities. The infrastructure provision is made by
building partnerships with private companies within an agreement. National interest in PublicPrivate Partnership (PPP) is merely to avoid losses that Indonesia may go through. Thus, the
economic and social welfare regulations in Article 33 of the 1945 Constitution of the Republic of
Indonesia are to be further studied. Moreover, private companies are interested in building
cooperation with the Indonesian Government in providing telecommunication infrastructure in
Indonesia.