LEGALITY OF LOCAL GOVERNMENT ACTION IN GUARANTEE THE INFRASTRUCTURE DEVELOPMENT DONE LOCAL WATER SUPLY
The ambiguity of the regulation is contained in Government Regulation No. 29 of 2009 which is an effort to achieve the Millennium Development Goals. This regulation stipulates the involvement of the Regional Government in the form of guarantee on investment credit of PDAM. On the other hand, there are provisions in Law Number 33 Year 2004 and Law Number 12 Year 2014 which stipulates that Regional Government is prohibited to guarantee the loan of other parties. In addition to legal certainty, the purpose of law is to realize the benefits and justice. The Regional Government's actions in ensuring infrastructure development by PDAMs in order to accelerate the provision of drinking water to the community are legitimate because as the fulfillment of the right to water, the implementation of the obligatory concurrent affairs of the Regional Government, the form of risk sharing, the authority of the Regional Government to the PDAM, and the benefit of increasing household connections. In the event of default on the PDAM investment credit, the Central Government has an obligation to the Lending Bank of 70% of the principal outstanding debt to be derived from the APBN and reserve funds, the Dear Government has an obligation to the Central Government of 30% of the principal , and the PDAM has an obligation to the Central Government amounting to 40% of the principal outstanding.
Keywords: Water Rights, Local Government Affairs, Default