Guidelines for the Implementation of Procurement of Goods

Guidelines for the Implementation of Procurement of Goods & Services 1. Basic Concept Government Procurement of Goods/Services, hereinafter referred to as Procurement of Goods/Services, is an activity to obtain Goods/Services by Ministries/Institutions/Regional Work Units/other Institutions, the process of which begins with planning needs until all activities to obtain Goods/Services are completed. In this case, the procurement procedure for goods and services referred to is regulated in the Decree of the President of the Republic of Indonesia (Keppres) Number 18 of 2000 concerning Guidelines for the Implementation of Procurement of Goods/Services by Government Agencies. The purpose of establishing this Presidential Decree is to regulate users of goods/services (including planners, implementers, supervisors), and providers of goods/services with their respective duties, functions, rights and obligations and roles in the procurement process of goods/services by Government Agencies. 2. Scope of the Presidential Decree In terms of guidelines for the implementation of procurement of goods and services in government agencies, the president has the authority to create limitations on its scope, where there are three existing scopes, namely: a) Procurement of goods/services whose financing is partly or wholly charged to the State Budget (APBN) and Regional Budget (APBD) and Regional Budget (APBD Province and APBD Regency/City). b) Procurement of goods/services for investment within Bank Indonesia, Pertamina, BUMN/BUMD whose financing is partly or wholly charged to the APBN/APBD. c) Procurement of goods/services whose financing is partly or wholly charged to the APBN/APBD. d) Procurement of goods/services whose financing is partly or wholly charged from Foreign Loans/Grants (PHLN) that are in accordance with or do not conflict with the guidelines and provisions for procurement of goods/services from the relevant lender/grant provider. 3. Purpose of Procurement of goods and services The purpose of procurement of goods and services is to obtain goods/services needed by Government Agencies in sufficient quantities, with quality and prices that can be accounted for, within a certain time and place, effectively and efficiently, according to applicable provisions and procedures. 4. Principles of Procurement of Goods and Services In terms of procurement of goods and services, there are several principles that exist and must be adhered to by the parties involved in the procurement of goods and services so that the target objectives can be achieved optimally, namely: a) Efficient, meaning that procurement of goods/services must be attempted using limited funds and resources to achieve the targets set in the shortest possible time and can be accounted for. b) Effective, meaning that procurement of goods/services must be in accordance with the needs that have been set and can provide the greatest possible benefits in accordance with the targets set by the Government. c) Competitive, meaning that procurement of goods/services must be carried out through auctions/selections and healthy competition among providers of goods/services that are equivalent and meet certain requirements/criteria based on clear and transparent provisions and procedures. d) Transparent, meaning that all provisions and information regarding the procurement of goods/services, including technical requirements for procurement administration, evaluation procedures, evaluation results, determination of prospective providers of goods/services, are open to interested participants providing goods/services (Auction participants, Direct Selection, Direct Appointment) as well as to the general public. e) Fair/non-discriminatory, meaning providing equal treatment for all prospective providers of goods/services and not aiming to benefit certain parties, in any way and/or for any reason. f) Responsible, meaning having to achieve targets both physically, financially and in terms of benefits for the smooth implementation of general government tasks and public services in accordance with the principles and provisions applicable in the procurement of goods/services. 5. General Government Policy in Procurement of Goods and Services There are several policies that have been regulated in the procurement of goods and services within the government, namely: a) Increasing the use of domestic production, national design and engineering, the aim of which is to expand employment and domestic industry in order to increase international trade. b) Increasing the role of Small Businesses, Cooperatives, Non-Governmental Organizations and local communities in the procurement of goods/services. c) Simplifying the provisions and procedures to accelerate the decision-making process in the procurement of goods/services. d) Increasing the professionalism, independence and responsibility of the head of the office/work unit/project leader/project section, procurement committee, or other authorized officials. e) Increasing state revenue through the taxation sector, in the implementation of procurement of goods/services of Government Agencies. f) Developing the role of national businesses in the implementation of procurement of goods/services of Government Agencies. g) Requiring the implementation of procurement of goods/services to be processed or carried out within the Territory of the Republic of Indonesia. 6. Ethics of Procurement of Goods and Services In the procurement of goods and services in the scope of government, several things or things that may, must, and may not be done have been determined. Where this is made in order to obtain mutual interests and cooperation runs harmoniously. That way all parties involved get their respective benefits in the right way and do not burden other parties. The ethics are in the form of: a) Users of goods/services of Government Agencies (including planners, implementers, supervisors), providers of goods/services and parties involved in the implementation of procurement of goods/services must comply with the ethics of procurement of goods/services, namely: b) Carrying out tasks in an orderly manner, accompanied by a sense of responsibility to achieve the target of smoothness and accuracy in achieving the objectives of procurement of goods/services c) Working professionally, independently on the basis of honesty, and maintaining the confidentiality of procurement documents for goods/services and services that should be kept confidential to prevent deviations in the procurement of goods/services. d) Not influencing each other either directly or indirectly, to prevent and avoid unhealthy competition. e) Accepting and being responsible for all decisions made in accordance with the agreement of the parties. f) Avoiding and preventing conflicts of interest between the parties involved, directly or indirectly in the procurement process of goods and services. g) Avoiding and preventing waste and leakage of state finances in the procurement of goods and services. h) Avoid and prevent abuse of authority and/or conduct joint activities for the purpose of personal, group or other party gain that directly or indirectly harms the State. i) Not accepting, not offering or not promising to give or receive gifts, rewards in any form to anyone who is known or should be suspected of being related to the procurement of goods/services. 7. Parties Involved in the Procurement of Goods and Services In the procurement of goods and services within the scope of government, it is stipulated that there are three parties directly involved. Namely: a. Officials • Head of office/work unit/project leader/project section/official who is the same/appointed for Auction or Direct Selection or Direct Appointment, which is worth up to IDR 50,000,000,000.00 (fifty billion Rupiah). The stipulation in question does not require the approval of the Minister/Head of Non-Departmental Government Institution/echelon I official/Governor/Regent/Mayor/direct superior official concerned. • Minister/Head of Non-Departmental Government Institution for Auction or Direct Election or Direct Appointment, funded from APBN funds worth more than Rp.50,000,000,000.00 (fifty billion rupiah). • Governor for Auction or Direct Election or Direct Appointment funded from Provincial APBD funds worth more than Rp.50,000,000,000.00 (fifty billion rupiah), and the determination in question does not require the approval of the Minister of Home Affairs. • Regent/Mayor for Auction or Direct Election or Direct Appointment funded from Regency/City APBD funds and worth more than Rp.50,000,000,000.00 (fifty billion rupiah), and the determination in question does not require the approval of the Minister of Home Affairs • The leadership of Bank Indonesia, Pertamina, State-Owned Enterprises (BUMN), Regional-Owned Enterprises (BUMD), and other governmentowned bodies for auctions or Direct Selection or Direct Appointment worth more than Rp. 50,000,000,000.00 (fifty billion rupiah) and the determination in question does not require the approval of the Minister of Home Affairs or the Governor or Regent. b. Procurement committee The procurement committee must meet the following qualifications: • Have moral integrity, discipline and responsibility in carrying out their duties • Understand the overall work to be carried out • Understand the specific type of work that is the task of the relevant procurement committee • Know and master the contents of the procurement documents/methods and technical procedures for their implementation • Have no family relationship with the head of the office/work unit/project leader/project section/official who is the same/appointed • Priority is given to those who have received special training in the field of procurement of goods/services The duties, authorities and responsibilities of the procurement committee are determined as follows: • Schedule and determine the method of implementation and location of the procurement • Prepare procurement documents, prequalification documents including criteria and procedures for the bidding committee and other procurement documents • Announce the procurement of goods/services through print media and official bulletin boards for public information, and if possible through electronic media • Compile an initial list of prospective providers of goods/services who meet the classification requirements (business fields and sub-fields) and qualifications to be invited to participate in the procurement and if required to request proof of the truth of their qualifications and classifications • Sending invitations to other prospective auction participants to take part in the pre-qualification, if the number of auction participants who registered and met the requirements in the initial pre-qualification is less than 3 (three) candidates • Providing an explanation of the procurement documents including the terms of the offer, the method of submission and the procedure for evaluation which are contained in the minutes of the explanation • Opening the offer documents and making a minute of the opening of the offer • Assessing the incoming offers, conducting clarifications and determining the order or prospective auction winners, conducting negotiations in the case of Direct Selection/Direct Appointment and making a minute of the activity • Making a report on the procurement process and results to the user of goods/services, namely the head of the office/work unit/project leader/project section/equalized/appointed official. • Provider of Goods and Services • Have expertise, experience, technical and managerial capabilities in the business field which can be qualifications/classifications/certifications issued proven by the by relevant company/professional association • Have human resources, capital, equipment and other facilities required in the procurement of goods/services • Legally have the capacity to sign procurement contracts • Not under court supervision, not bankrupt, business activities are not being stopped, and/or are not undergoing criminal sanctions • As a taxpayer, have fulfilled tax obligations in the last year • Have never been punished based on a court decision for actions related to the professional conduct of the company/individual 8. Procedures for Procurement of Goods and Services There are two parties regulated in the procedures for procurement of goods and services, namely: a) Procurement of goods and services through providers of goods / services: • Goods, any object, whether tangible or intangible, movable or immovable, that can be traded, used, utilized, or utilized by users of goods • Construction work, all or part of the activities that include construction, operation, maintenance, demolition, and reconstruction of a building • Other services, non-consulting services or services that require equipment, special methodologies, and / or skills in a governance system that is widely known in the business world to complete a job. • Consulting services, professional services that require certain expertise in various scientific fields that prioritize brainware. c. Procurement of goods and services through self-management Goods / services: Characteristics of goods / services that can be done by self-management, Self-management is the implementation of work that is planned, carried out and supervised by oneself using one's own manpower, one's own tools, or contract wages.