To clarify a number of matters with respect to the procurement of Government Goods and Services, particularly in relation to the completion of the duties of the Government with respect to the conclusion and dissolution of the Indonesian Bank Restructuring Agency (“IBRA” or “Badan Penyehatan Perbankan Nasional” or “BPPN”), The State Secretariat recently issued Presidential Decree No. 61 of 2004 on the Amendments to Presidential Decree No. 80 of 2003 on the Implementation Guidelines for the Procurement of Government Goods/Services (the “Decision” or “PD 61/2004”).

The second reasoning underlying issuance of the Decision is to make clear the rule of appointment of appraisal. The Government needs to appoint Consultant Appraiser to increase the rate at which national assets and wealth are returned to the state treasury and such appointment must be in conformity with prevailing norms.

Under Article 22 of PD No. 80 of 2003, appointment for consultancy service may be conducted through open selection. Article 22(2) stipulates that open selection of consultants should be conducted through prequalification phase announced in public media and official announcement board so that the public is aware of the selection and interested parties can apply. The Decision then amend Article 22 of the Elucidations in which elucidations of Article 22(2) now states that such announcement of open selection should be able to disseminate the information concerning open selection to the public, especially consultants from the particular local or other regions.

Article 22 (5) allowed the government to appoint consultant on specific circumstances, however such appointment must be previously negotiated with the consultant so as it achieve a reasonable price and high quality of work. The Decision amends the elucidation of Article 22 (5) in which it elaborate the specific circumstances condition into (i) security emergencies and public safety, (ii) sole service providers, (iii) state secrets, (iv) small-scale enterprises up to IDR 50 million, (v) patent right holders, and (v) the quick resolution of national assets and wealth under management.

The final amendment is the insertion of the above noted definitions into Attachment I Chapter I C.1.b.4 to PD 80/2003. (edited/mma)