Government Procurement of Goods and Services is regulated by the President Regulation No. 16 of 2018 concerning Government Procurement of Goods and Services and has been amended by the President Regulation No. 12 of 2021 (“PR 12/2021”) issued on 2 February 2021. PR 12/2021.

In regards to the types of government procurement of goods and services, Article 1 number 36 PR 12/2021 states that procurement of goods and services (“tender”) by the Indonesian Government is a method of selection to get procurement of goods/construction/other services and consultation services that consist of eight mechanisms, which are:

A key consideration for retail companies is whether they can seamlessly add the e-commerce aspect under a different classification. Under Article 3 Ministry of Trade Regulation No. 31 of 2023, companies are permitted to diversify their business activities, as long as they comply with relevant regulatory requirements as long as they have a business license for their main business activities sectors. Importantly, KBLI 63122 is not classified as a single-purpose KBLI, allowing it to be combined with other KBLI codes that are also not single-purpose.

a. Procurement of goods/construction/other services that are regulated by Article 38 PR 12/2021 which consists of:

1. E-purchasing is the mechanism for the purchase of goods/services for catalog electronic systems that is conducted for procurement of goods/construction/other services already mentioned on the electronic catalogs or online store
2. Direct Procurement that is conducted for procurement of goods/construction/other services with a maximum amount of Rp200.000.000,00 (two hundred million Rupiahs)
3. Direct Designation that is conducted to procure goods/construction/other services in certain circumstances/conditions.
4. Quick Tender that is conducted if the prospective tender candidate has been qualified in the Provider Performance Information System for procurement that:
   – the specifications and volume of work can be determined in detail;
   – may be able to mention the brand of the spare parts or the part of an existing system that states in Article 19 par. (2) letter b and c.
5. Tenders conducted in the event can’t use the selection methods mentioned in the letters A to D above

b. Consultation Services that is regulated by Article 41 PR 12/2021 PR 12/2021

1. Selection conducted for the consultation services with a minimum amount of more than Rp100.000.000,00 (one hundred million Rupiahs).
2. Direct Procurement conducted for the consultation for the consultation service with the maximum amount of Rp100.000.000 (one hundred million Rupiahs).
3. Direct Designation is conducted for the consultation services with certain circumstances/conditions.

In regards to the type of tender that has been explained above, procurement goods/construction/other services, and consultation services is conducted with a selection process of:

a. E-purchasing based on the Article 50 par. (5) PR 12/2021 should be conducted for the goods/services that are related to the fulfillment of the national needs and/or strategies that are already stipulated by the Minister/head of institutions/head of the district

b. Implementation of direct procurement based on the Art. 50 par. (7) PR 12/2021 is conducted with a step of purchase/payment directly to the provider for the procurement of other goods/services using proof of purchase/receipts or a request for quotation accompanied by clarification and technical and price negotiations to the prospective tender candidate for direct procurement using a work order.

c. Implementation of direct designation based on Article 50 Par. (6) PR 12/2021 is conducted with inciting one (1) prospective tender candidate that has been chosen, accompanied by technical and price negotiations.

d. Quick tender based on Article 50 Par. (3) PR 12/2021 is conducted with a process of:

1. the tender participant has been qualified in the Provider Performance Information System;
2. participants submit price offers;
3. evaluation of price quotations is carried out through the application; and
4. determination of the winner based on the lowest bid price

e. Tender/Selection based on Article 50 par. (1) PR 12/2021 conducted with a process of:

1. implementation of qualifications;
2. announcement and/or invitation;
3. registration and collection of selection documents;
4. provision of explanations;
5. submission of tender bidding documents;
6. evaluation of tender bidding documents;
7. determination and Announcement of Winners; and
8. objection process.

In addition, Article 22 PR 16/2018 obligates the tender plan/the general plan of the tender by the ministry/government institutions/regional government institutions should be announced through the application system of the general plan of the tender, which can then be added to the website of the institution, ministry or regional government, official notice boards for the public, newspapers and/or other media.

If you, a prospective client, have further inquiries about the topic discussed above, Schinder Law Firm is one of many corporate law firms in Indonesia that has handled numerous similar matters, with many experienced and professional corporate and civil lawyers in its arsenal, making it one of the top consulting firms in Indonesia. Feel free to contact us at info@schinderlawfirm.com for further consultation.

Author:
Budhi Satya Makmur