Most infrastructure PPPs in Indonesia are carried out by BOTs and BOOs, though design-build-operate, design-build-lease, and build-buy-operate are used to a lesser extent. PPP projects can be developed on a solicited or unsolicited basis, but in all cases the selection of a private sector partner must be conducted by open tender.
Under Indonesia's PPP eligibility criteria, companies providing infrastructure must have the technical capacity to be able to work in the project sector concerned, and deliver projects that are economically feasible and financially viable. Companies must have the financial capacity to be able to participate in an infrastructure PPP and prepare a feasibility study for the proposed PPP project. Three compensation options are available for a prospective private partner doing this: (i) extra points within 10% of the total evaluation points upon review of the proposal assessment,1 (ii) granting the right to make a revised proposal within 30 days under the results of the assessment of the tender process, and (iii) buying the intellectual property rights of project from the initiator.