President Jokowi Signs Regulation on Defense and Security Equipment Procurement Procedure

In a bid to implement provisions of Article 44 paragraph (4) of Law Number 16 of 2012 on Defense Industry, President Joko “Jokowi” Widodo on 29 April 2019 signed Presidential Regulation Number 27 of 2019 on Procurement Rules and Procedures of Defense and Security Equipment of Defense Industry Product under Long Term Contract.

Under the Presidential Regulation, Defense and Security Equipment hereinafter referred to as the Alpalhankam means any equipment that supports state defense and security, as well as state order.

The Defense Industry shall manufacture the Alpalhankam, which consists of: a. primary weaponry defense system; b. supporting equipment; and c. other equipment.

“Procurement of the Alpalhankam as intended by letter a will be made under a long term contract,” Article 2 paragraph (2) of the Presidential Regulation reads.

On the other hand, Procurement of the Alpalhankam as intended by letter b and letter c will be made under  a long term contract insofar as it meets these following criteria: a. it will be used as special equipment for the Indonesian National Police (Polri); and b. it will be used as primary equipment in implementing main duties of ministries and/or institutions.

“Type of Alpalhankam products to be procured under the long term contract is stipulated by Head of Defense Industry Policy Committee (KKIP) by taking into account the user’s proposal through the KKIP decision-making mechanism,” Article 2 paragraph (4) reads.

In general, procurement of Alpalhankam under the long term contract may be made insofar as it meets these following criteria: a. manufacturing processes take more than 1 (one) year to finish; b. it complies with the operational requirements; c. it has the same technical specifications for a period of 5 (five) years or more; and/or d. it has strategic values that meet user needs.

The procurement must also meet these requirement: a. it must be included in the Alpalhankam Master Plan in Meeting the Needs stipulated by the Head of KKIP; b. it is made by the Minister in charge of Government affairs in defense sector, minister, or heads of institutions; and c. may be manufactured by the Defense Industry.

The procurement of Alpalhankam for the sake of state defense shall be made by the Minister, while procurement of Alpalhankam for the sake of security and public order shall be made by the Minister, Chief of the Indonesian National Police or heads of government institutions in accordance with the provisions of laws and regulations,” Article 5 paragraph (2) reads.

Based on this Presidential Regulation, procurement of Alpalhankam under the long term contract shall take form of: a. procurement of the Government goods; and b. the Government assignment.

Procurement of the Government goods as intended by letter a will be made in accordance with the provisions of laws and regulations, while, the Government assignment as intended by letter b may be made for: a. Alpalhankam with high confidential status; b. research and development of Alpalhankam prototype; and/or c. the upgrade of prototype aimed at creating mass-produced products.

Monitoring and controlling of Alpalhankam Procurement under Long Term Contract will be conducted by Head of the KKIP and regulated by a Ministerial Regulation.

“The Presidential Regulation shall apply as of the date of its promulgation,” Article 12 of Presidential Regulation Number 27 of 2019 which was stipulated by Minister of Law and Human Rights Yasonna H. Laoly on 2 May 2019 reads. (Pusdatin/ES)

Translated by : Rany Anjany Subachrum
Edited by : Muhardi/ M. Ersan Pamungkas