Ministry of Finance Regulation on e-Procurement Registration

Ministry of Finance Regulation No. 197/PMK.01/2010 on the Registration and Verification Mechanism for Ministry of Finance e-Procurement (‘Regulation’) has recently been issued to improve the effectiveness, efficiency, and accountability of electronic procurement (e-procurement) by the Ministry of Finance.

Under Articles 1 (1) and 2 of the Regulation, a unit called Ministry Of Finance E-Procurement Service (Layanan Pengadaan Secara Elektronik/LPSE) will organize e-procurement while using the Regulation as a set of guidelines to implement the registration and verification process. The Regulation also serves as a set of guidelines for suppliers of goods and services in relation to the e-procurement process.

Article 5 splits the registration process into two parts: online and offline. The initial process involves online registration, made through the LPSE’s website (www.lpse.depkeu.go.id). After online registration has been completed, the supplier has to complete the offline part of the registration by submitting the required documents, as elaborated on in Article 6. Verification of the submitted documents will then be carried out in accordance with the provisions of Articles 11 through 14, and can include field verification in accordance with Article 13.

After the completion of the online and offline parts of the registration, and the document verification, the supplier will be given a username and a password to access the e-procurement system.

The offline part of the registration process has to be completed within 30 days of the online registration, otherwise the supplier will be removed from LPSE’s database. Suppliers who have been removed in such a manner can simply complete a new online registration according to Article 10.

Suppliers can also have their username and password revoked at a later date, pursuant to Article 12 (4), in the event that it is shown that invalid documents have been submitted.

The Regulation has been in force since 23 November 2010.