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HIGHLIGHTS
COVID19 as a Force Majeure event. Does it even matter? We recently assist a debtor who is deeply impacted by COVID19 in terms of fulfilling its payment obligation to its bank. Rather than invoking COVID19 as Force Majeure event, we have successfully reach a restructuring plan and not violate the Loan Agreement in the process. Both of the parties agree that COVID19 has a devastating effect but refrained from clearly acknowledge COVID19 as a force majeure event. We achieve our objective without having to declare COVID19 as a force majeure event. Our advice remains: negotiate! Find a common ground with your counterpart. Arguing whether COVID19 is a force majeure event or not is, as the great Joey Tribbiani once say: a moo point - it does not matter. |
HIGHLIGHTS
Private Sector as operator of State’s assets: Indonesia’ effort in monetizing existing infrastructure assets Private Entity can now participate as operator of existing State’s assets as well as State-Companies’ assets. With a new President Regulation No 32 year 2020 on Infrastructure Financing through Limited Operation Right (“PR32”), Private Entity can become an operator of various existing infrastructure assets such as: transportation ( seaports, airports, trains and bus terminal), toll roads, water resources, drinking water, waste management system, garbage management system, telecommunication and informatics, electricity, oil, natural gas and renewable energy. Under PR32, government shall grant Limited Operation Right to Private Entity to become operator for a certain period of time. In return, Private Entity shall provide government with a pre-determined asset operation fund. The asset operation fund is intended for the government to finance the construction of new infrastructure projects as well as expansion of existing infrastructure assets. Read more here |