Dentons HPRP is advising PT Nindya Karya (Persero) on a landmark IDR 2.62 trillion Public Private Partnership (KPBU) project to develop eight residential towers for state civil apparatus (ASN), the Indonesian National Armed Forces (TNI), and the Indonesian National Police (POLRI) within Planning Area 1A of the Central Government Core Area (KIPP) of the Nusantara Capital (IKN).
The project marks three Indonesian firsts: the first KPBU project in IKN, the first KPBU for vertical housing (rumah susun), and the first KPBU for state buildings (Bangunan Gedung Negara), establishing an important precedent both for the new capital and for PPP projects in Indonesia in general.
Initiated by Nindya Karya as project initiator on an unsolicited basis, the project has now reached a key milestone, having been designated the winning bidder and the Letter of Award having been issued. Nindya Karya can now move on to the formation of the implementing business entity (BUP) and the signing of the KPBU IKN Agreement, over a concession period of 11 years and 3 months.
Dentons HPRP has been advising Nindya Karya end-to-end across every Indonesian legal aspect of the project, from the feasibility study, the review of procurement documents, and tender assistance, through to the KPBU Agreement and the negotiations with the Nusantara Capital Authority (Otorita IKN), PT Penjaminan Infrastruktur Indonesia (Persero) (“PII”), and the Ministry of Finance, including the co-guarantee arrangements.
The matter is led by Partner Winda Tania, with support from Senior Associate Imam Ibnu and Associate M. Afif Siduppa.
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