Indonesia

Indonesia: BRR Aceh-Nias asked for procurement shortcut

Format
News and Press Release
Source
Posted
Originally published
Jakarta, Indonesia-Relief -- The Head of Rehabilitation and Reconstruction Agency for Aceh and Nias Kuntoro Mangkusubroto has asked Indonesian president to amend existing government procurement and tendering regulation. The shortcut of normal contracting procedures is needed to minimize delays in Aceh and Nias reconstruction.

Kuntoro officially submitted his request during cabinet meeting in Jakarta last week (July 5). According to the existing government regulation on procurement (Presidential Decree or Keppres No. 80/2003), it takes 54 days to complete the procurement and tendering process for any transaction.

Previously, the government has issues Kepres 61/2004, which amended the previous rule, to enable direct appointment of contractor in disaster and crisis circumstances. Lately, National Development Planning Agency (Bappenas) recommended that BRR should asked for another amendment to speed up procurement process, in order to spend 2005 national budget that has been allocated for Aceh and Nias reconstruction.

In the meeting, the cabinet also confirmed the role of BRR as a coordinating agency, rather than an implementing body. Out of the Rp 8.4 trillion, Rp 4.4 trillion will go to the line ministries, earmarked as their regular budget under the coordination and approval of BRR. The remaining approximately Rp 4 trillion will flow through BRR and will then be directed to the local government bodies (Dinas).

The meeting also agreed that if BRR couldn't spend the government's allocated budget of Rp 8.4 trillion (almost US$900 million) within 2005, the budget would be carried over to 2006. © dil