Gov’t Issues Presidential Regulation No. 122/2016 on More Priority Infrastructures

In a bid to improve public services, the Government feels the urge to add the number of priority infrastructures, to strengthen the Committee for Acceleration of Priority Infrastructure Development (KPIP), and to accelerate Procurement of Government Goods/ Services to support the acceleration of priority infrastructure delivery.

For that purpose, President Joko “Jokowi” Widodo on 30 December 2016 signed a Presidential Regulation Number 122 of 2016 on the Amendment of Presidential Regulation Number 75 of 2014 on Acceleration of Infrastructure Priorities Development. Under the Regulation, the Government has added several priority infrastructures, including education, regional, tourism, and health infrastructures.

Education infrastructures cover: a. Learning facilities; b. Laboratory; c. Training center; d. Research center; e. Facilities and infrastructures for research and development; f. Practice rooms for students; g. Library; and h. Supporting facilities for learning and training.

Regional infrastructures cover: a. Special economic zone; and Industrial zone. While, health infrastructures cover: a. Hospital facilities and infrastructures; b. Basic health-care facility and infrastructures; and c. Laboratory facilities and infrastructures.

The Government has also changed the structure of Committee for Acceleration of Priority Infrastructure Delivery (KPPIP) through Presidential Regulation Number 122 of 2016. The changes are as follow:

Chairman             : Coordinating Minister for the Economy;

Vice Chairman      : Coordinating Minister for Maritime Affairs;

Members              : 1.Minister of Finance; 2. Minister of National Development Planning (PPN)/ Head of National Development Planning Agency (Bappenas); 3. Minister of Agrarian and Spatial Planning/National Land Agency; 4. Minister of Environment and Forestry.

For the record, in the previous Presidential Regulation, there was no Vice Chairman in KPPIP structure organization, and there were only 3 members excluding Minister of Environment and Forestry.

The amended regulation also states that the implementation of the Government goods/ services’ procurement by the KPPIP will be conducted with the following provisions:

1. direct procurement can be made to procure Consultation or other services with value not more than Rp500,000,000 (five hundred million rupiah);
2. direct preparation can be made to international financial agency in order to facilitate the preparation of Priority Infrastructures;
3. direct designation can be done to the Supplier of Consultation of Other Services who received good performance rating in the previous contract with the KPPIP for procurement of consultation or other regular services;
4. direct designation can be done once to the Supplier of Good/ Services who received good performance rating in the previous contract with the KPPIP;
5. if contract implementation is not finished by the end of fiscal year because of force majeure, the contract can be continued in the next fiscal year by allocating the budget in the next fiscal year; and
6. if contract implementation is not finished by the end of fiscal year due to the fault of the ministries/ institutions, the contract can be continued in the next fiscal year by allocating the budget in the next fiscal year.

“Budget allocation for carrying out the implementation of contract can be done by re-allocating the Budget of Coordinating Ministry for the Economy,” Article 11A paragraph (2) of the Presidential Regulation says.

According to the Regulation, in an effort to accelerate Consultation Services, KPPIP had established Panel of Consultants, which consists of at least 5 (five), but not exceeding 7 (seven) Suppliers of Consultation Services.

Candidates for Supplier of Consultation Service that will be recruited in the Panel of Consultants will be selected and appointed by the KPPIP. “KPPIP will sign the framework contract to recruit Candidates for Supplier of Consultation Service as intended for a period not exceeding 3 (three) years,” Article 11B paragraph (4) of the Presidential Regulation says.

Further provisions on selecting and appointing procedure of Panel Consultant will be regulated in the regulation of head of institution responsible for Government affairs in the field of procurement of goods/services of the Government.

“This Presidential Regulation shall apply as of the date of its enactment” Article 3 of the Presidential Regulation Number 122 of 2016 which is promulgated by the Ministry of Law and Human Rights Yasonna H. Laoly on 30 December 2016 says. (Pusdatin/ES) (RAS/EP/YM/Naster)