Revision of the Regulation on the Government Procurement of Goods and Services

Today (6/8) in Cipanas, Bogor, the President signed several regulations, including, among several others, the revision of Presidential Decree No. 80 of 2003 on Guidelines for Government Procurement of Goods and Services (as last amended by Presidential Regulation No. 95 of 2007). The revision of the Presidential Decree and its amendments - in the form of a Presidential Regulation - overhauls the existing procurement provisions, which have been considered problematic.

 

Although hukumonline has not obtained the copy of the new Presidential Regulation, the changes made by the regulation include the following:

-

Starting from 2012, the regulation obligates the government procurement of goods and services to be made electronically (‘e-procurement’). Under the Presidential Decree, the e-procurement was not mandatory, but voluntary in nature. The mandatory e-procurement requirement, however, is only applicable to the procurement of certain goods and services;

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The Presidential Decree allows the determination of goods and service providers by way of a direct appointment only in the event that the definition of ‘certain event’ is satisfied, which among others, includes the procurement for a ‘small-scale project’ with a value of not more than IDR 50 million. The ceiling which has now been increased to IDR 100 million;

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Besides the ‘certain event,’ direct appointment can also be made if the procurement is included in the definition of a ‘special event.’ According to Article 15 (5) of Presidential Regulation No. 32 of 2005 (the second amendment to Presidential Decree No. 80 of 2003), events that can be categorized as a special event comprise of 4 types of events. In the new regulation, 4 additional events have been added to the definition of special event. These are, among others, if the procurement is for the distribution of raw materials for medicine, medicine, and healthcare equipment, whose types, amounts, and prices have been approved by the Minister of Health; and

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Under the Presidential Decree, foreigners can participate in the government procurement of goods and services under the following conditions: (1) for construction-related services of more than IDR 50 billion; (2) for other goods and services of more than IDR 10 billion; and (3) for consultant services of more than IDR 5 billion. In the new regulation, these caps are increased as follow: (1) for construction-related services of more than IDR 100 billion; (2) for other goods and services of more than IDR 20 billion, and; (3) for consultant services of more than IDR 10 billion.

 

Since the new Presidential Regulation has been approved by the President, it is expected that the document will be soon become available to the public.

 

The Presidential Regulation, once it takes force, will repeal and replace the previous regulation on the same subject matter, namely Presidential Decree No. 80 of 2003, including its amendments.

 

......

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Today (6/8) in Cipanas, Bogor, the President signed several regulations, including, among several others, the revision of Presidential Decree No. 80 of 2003 on Guidelines for Government Procurement of Goods and Services (as last amended by Presidential Regulation No. 95 of 2007). The revision of the Presidential Decree and its amendments - in the form of a Presidential Regulation - overhauls the existing procurement provisions, which have been considered problematic.

 

Although hukumonline has not obtained the copy of the new Presidential Regulation, the changes made by the regulation include the following:

-

Starting from 2012, the regulation obligates the government procurement of goods and services to be made electronically (‘e-procurement’). Under the Presidential Decree, the e-procurement was not mandatory, but voluntary in nature. The mandatory e-procurement requirement, however, is only applicable to the procurement of certain goods and services;

-

The Presidential Decree allows the determination of goods and service providers by way of a direct appointment only in the event that the definition of ‘certain event’ is satisfied, which among others, includes the procurement for a ‘small-scale project’ with a value of not more than IDR 50 million. The ceiling which has now been increased to IDR 100 million;

-

Besides the ‘certain event,’ direct appointment can also be made if the procurement is included in the definition of a ‘special event.’ According to Article 15 (5) of Presidential Regulation No. 32 of 2005 (the second amendment to Presidential Decree No. 80 of 2003), events that can be categorized as a special event comprise of 4 types of events. In the new regulation, 4 additional events have been added to the definition of special event. These are, among others, if the procurement is for the distribution of raw materials for medicine, medicine, and healthcare equipment, whose types, amounts, and prices have been approved by the Minister of Health; and

-

Under the Presidential Decree, foreigners can participate in the government procurement of goods and services under the following conditions: (1) for construction-related services of more than IDR 50 billion; (2) for other goods and services of more than IDR 10 billion; and (3) for consultant services of more than IDR 5 billion. In the new regulation, these caps are increased as follow: (1) for construction-related services of more than IDR 100 billion; (2) for other goods and services of more than IDR 20 billion, and; (3) for consultant services of more than IDR 10 billion.

 

Since the new Presidential Regulation has been approved by the President, it is expected that the document will be soon become available to the public.

 

The Presidential Regulation, once it takes force, will repeal and replace the previous regulation on the same subject matter, namely Presidential Decree No. 80 of 2003, including its amendments.

 

......

Subscribe to read more legal analysis.

Hukumonline Pro Intelligence

Platform AI hukum terpercaya sebagai solusi komprehensif riset Anda

professionalprofessionalProfessional Solutions
professionalprofessionalUniversity Solutions
*Syarat dan ketentuan berlaku
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