Procurement Threshold Alert: SKK Migas Approvals Now Mandatory for Tender Packages with Final Bid Values That Exceed Rp. 300 billion

In 2023, the Special Task Force for Upstream Oil-and-Gas Business Activities (Satuan Kerja Khusus Pelaksanaan Kegiatan Usaha Hulu Minyak dan Gas Bumi – “SKK Migas”) issued Circular No. EDR-0143/SKKIH0000/2023/S0 on Guidelines for Procurements of Goods/Services (“Procurements”), which was subsequently amended twice through the issuance of Circular No. EDR-400/SKKIH0000/2023/S0 and Circular No. EDR-0335/SKKIH0000/2024/S0 (collectively referred to as “Circular 0143/2023”). In essence, Circular 0143/2023 outlines a detailed set of requirements and procedures for the implementation of Procurements. These have subsequently been serving as a set of guidelines for use by Cooperation Contract Contractors (Kontraktor Kontrak Kerja Sama – “KKKS”).