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Procurement of goods and services for state enterprises (BUMN) is regulated in BUMN Ministerial Regulation Number Per-05/MBU/2008 regarding Procurement of Goods and Services for State Enterprises as amended with Per-05/MBU/2012. The Ministerial Regulation contains guidelines on matters requiring attention, as follows:

1. Fulfil the following principles:

a. Efficient;

b. Effective;

c. Competitive;

d. Transparent;

e. Equitable and Fair; and

f. Accountable

2.Procurement of goods and services can be conducted by the following ways:

a. open bid or open selection for consulting services;

b. direct selection for consulting service procurement;

c. direct appointment; or

d. direct purchase

3. Procurement of goods and services is carried out by:

a. a procurement committee or

a procurement officer; or

b. an eligible professional institution.

The organizer of goods and service procurement must sign a letter of undertaking for every procurement of goods and services.

4. Specifically for projects requiring more than 1 (one) year to complete, the following criteria must be met;

a. Goods and service users tailored to the specific needs of the respective goods and service users insofar as the quality, price and purpose can be accounted for.

b. In terms of long-term goods and service procurement, goods and service users need to create a certain price adjustment formula, both in case of rising or drop in pricing, which is adjusted to the market conditions and the current best practice.

5. Right to protest. In order to guarantee transparency and equal treatment, 4 (four) business days from the announcement of bid winner, the losing providers of goods and services have the right to protest concerning whether the conduct of bid/selection has aligned with the bid/selection procedure.

In addition, the organizer of goods and service procurement must also deliver their decision on such protest within 14 calendar days at the latest, as from the date of receipt of such protest.T

Those are the points which should be observed in joining state enterprise bids. Goods and service providers are expected to observe them prior to entering into any state enterprise bid.