THE MATERIAL ADVERSE GOVERNMENT ACTION CLAUSE AS A FORM OF PROTECTION FOR IMPLEMENTING BUSINESS ENTITIES IN THE PUBLIC PRIVATE PARTNERSHIP SCHEME

Alya Sofiatuzzahra Achriansyah, . (2025) THE MATERIAL ADVERSE GOVERNMENT ACTION CLAUSE AS A FORM OF PROTECTION FOR IMPLEMENTING BUSINESS ENTITIES IN THE PUBLIC PRIVATE PARTNERSHIP SCHEME. Syiah Kuala Law Journal, 9 (1). pp. 28-44. ISSN 2580-9059

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Official URL: https://jurnal.usk.ac.id/SKLJ/article/view/43607

Abstract

Infrastructure development is a key element in supporting economic growth and ensuring the equitable distribution of welfare among the public. Within the framework of Public-Private Partnerships (PPP), this scheme serves as an innovative financing solution to address government budget constraints. However, the implementation of PPPs in Indonesia faces challenges from political risks, such as regulatory changes and unforeseen government actions, which can significantly impact the sustainability of infrastructure projects. The Material Adverse Government Action (MAGA) clause offers a protective mechanism against these risks, but it has not yet been explicitly regulated in PPP agreements in Indonesia. Through a comparative analysis with the Philippines, which has integrated the MAGA clause into its national regulations, this study highlights the importance of adopting MAGA in Indonesia to enhance legal certainty and mitigate political risks. This clause could serve as an important instrument to protect the Implementing Business Entity (IBE) from the negative impacts of government actions, while supporting the smooth and sustainable development of infrastructure. This study recommends strengthening the MAGA regulation in PPP agreements to create a conducive investment climate and ensure legal protection for stakeholders in infrastructure projects in Indonesia.

Item Type:	Article
Additional Information:	[No. Panggil : 2110611168] [Pembimbing : Taupiqqurrahman] [Penguji 1 : Rianda Dirkareshza] [Penguji 2: Taupiqqurrahman]
Uncontrolled Keywords:	Material Adverse Government Action (MAGA), Political Risks, Public-Private Partnership (PPP)
Subjects:	K Law > K Law (General)
Divisions:	Fakultas Hukum > Program Studi Hukum (S1)
Depositing User:	ALYA SOFIATUZZAHRA ACHRIANSYAH
Date Deposited:	17 Feb 2025 08:09
Last Modified:	17 Feb 2025 08:09
URI:	http://repository.upnvj.ac.id/id/eprint/35934

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