LKPP Prepares New Implementing Regulation for Perpres PBJP

The Government Procurement of Goods/Services Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah – “LKPP”) is currently preparing a revision to LKPP Regulation No. 12 of 2019 (“PerLKPP 12/2019”) on Guidelines for the Preparation of Procedures for the Procurement of Goods/Services (Pengadaan Barang/Jasa – “PBJ”) in Villages (“Village PBJ”). The amendment focuses on strengthening community participation through self-management (swakelola), simplifying supplier selection methods, and introducing an e-purchasing system at the village level.

“This regulatory change is driven by the inclusion of village procurement arrangements within the Presidential Regulation on PBJ,” stated Anita Karolin, Senior Policy Analyst at LKPP.

Furthermore, Anita explained that procurement of goods and services is primarily carried out through self-management by maximizing community empowerment and the utilization of resources available within the village. With respect to procurement through suppliers without self-management, supplier is categorized into three, namely suppliers located within the village; where such suppliers are unavailable, suppliers within the same regency/municipality; or other goods and services providers.

In addition, the regulation currently being prepared also governs direct procurement or e-purchasing with value thresholds equivalent to direct procurement from local suppliers. This mechanism may still be applied as long as the price differential is higher compared to suppliers from other villages, provided that it does not exceed a maximum of 15% and remains in accordance with the principles of goods and services procurement.