Draft Regulation of the President on Digital Government Outlines Procurement Scheme for Goods and Services

The government is currently preparing a draft Presidential Regulation on Digital Government; this regulation refines the concept of the Electronic-Based Government System (“SPBE”) into a more user-centric paradigm. 

“The paradigm shift will no longer focus on the agencies themselves but on how the procurement process is conducted,” said Acting Deputy for Government Digital Transformation at the Ministry of State Apparatus and Bureaucratic Reform (PANRB), Cahyo Tri Birowo.

One of the provisions in this Draft Regulation of the President concerns the reform of procurement regulations for Goods and Services (“PBJ”). This draft regulation addresses innovative funding schemes and government procurement of goods and services with specific characteristics for information systems. This new regulation also provides for flexibility in contract schemes, allowing contract modifications to exceed 10% of the initial contract value if there are changes in implementation conditions; furthermore, changes to the scope of the contract are also permitted subject to the approval of the budget user.

Procurement may be conducted through multi-year contracts or umbrella contracts with a term of up to 10 years, which may be extended.