Construction Services for Government Agencies - Compulsory Tender

The Minister of Public Works has issued Circular No. 03/SE/M/2005 on the Organization of Construction Services for Government Agencies For the 2005 Budget Year (“Construction Services Circular”) to ensure compliance with prevailing laws and regulations related to the procurement of goods and services for government agencies and organizations. The primary function of the Construction Services Circular is to control the leakage and misappropriation of government money in the procurement of goods and services.

Essentially, any proposed procurement of construction services must be performed under strict rules relating to; namely, the publication in both the printed and electronic media, open, transparent, and accountability. The basic substance of the Construction Services Circular is in accordance with Presidential Decrees, No. 80 of 2003 and No. 61 of 2004, and permits the direct election of service providers up to IDR 50 million and IDR 100 million respectively. The Construction Services Circular also sets out the minimum competency and quality standards that must be satisfied by the chosen or appointed service provider.