Overview of the change in public procurement regulations

Until 22 March 2018, the main legal framework for public procurement in Indonesia was set out in Presidential Regulation No. 54 of 2010 on Public Procurement of Goods/Services, along with its numerous amendments (collectively referred to as “PR 54”), and various other detailed implementing regulations issued by Government departments pursuant to PR 54.

On 22 March 2018 (“Issuance Date”), the Government of Indonesia issued Presidential Regulation No. 16 of 2018 on Public Procurement of Goods/Services (“PR 16”) which repealed and replaced PR 54 with immediate effect. However, to avoid a lacuna in the legal framework, PR 16 provides that the implementing regulations of PR 54 remain in force to the extent they are consistent with PR 16 and until the issuance of replacement implementing regulations under PR 16. The implementing regulations of PR 16 must be issued within 90 days after the Issuance Date (i.e. by 20 June 2018), however if they are delayed, the previous implementing regulations will continue to apply.

PR 16 will not affect public procurement contracts awarded under PR 54, which will remain governed by PR 54 until their expiry. PR 54 may also still be implemented on procurement activities commenced prior to 1 July 2018.