LKPP Issues Regulation on Government Contracts Without ODOL

The Government has updated regulation on logistics transport contracts with the private sector to prohibit over-dimension overload (“ ODOL ”). These regulations will be issued by the National Public Procurement Agency (“ LKPP ”) as the governing framework for such cooperation.

“In the near future, a regulation from LKPP will be issued stipulating that all government contracts with the private sector must be zero ODOL,” stated Odo R. M. Manuhutu, Deputy for Connectivity Coordination.

This regulation also serves as the basis for terminating contracts between State-Owned Enterprises (“ BUMN ”) and logistics transport companies that violate the rules, particularly corporations with a track record of overloading in goods transportation.

“Starting next year, a circular will be issued stipulating that all BUMNs will not enter into contracts with companies operating ODOL trucks,” said Odo