UKOM Sp.JP key terms

The regulated process by which Indonesian government bodies obtain goods, works, and consultancy services using state or regional budget funds, from planning through payment and handover.

The presidential regulation that forms the main legal basis for government procurement in Indonesia, governing principles, actors, methods, and contract types across all procuring entities.

The principle requiring procurement to deliver the needed output at the lowest reasonable cost and time, avoiding waste while still meeting the specified quality and quantity requirements.

The principle that procurement must actually achieve the intended results and targets, aligning the delivered goods, works, or services with the stated needs and performance objectives.

An award approach weighing price against quality, whole-life cost, and technical merit rather than choosing the lowest bid, used where performance or lifecycle considerations dominate.

The published annual procurement plan listing packages, methods, schedules, and budgets, used to signal upcoming tenders and to enable early market preparation by suppliers.

The owner's confidential cost estimate for a package, used to set the budget ceiling and to test whether bids are reasonable, without being disclosed to bidders before opening.

The terms of reference describing the need, scope, deliverables, schedule, and quality standards for a procurement, forming the basis for bidding documents and later contract performance.

The measurable technical requirements for goods or works, stated by function and performance where possible, and written so as not to favour a particular brand or supplier.

A competitive selection method with open or limited participation, used for larger packages, where bidders submit priced offers against published requirements and are evaluated against set criteria.

The competitive method for consultancy services, where proposals are assessed on technical quality and cost using scoring or quality-based selection rather than a simple lowest price.

A simplified method for small-value packages, involving direct negotiation with one or more qualified local suppliers without a full tender process, subject to value thresholds.

Award to a single supplier without competition, permitted only in defined exceptional situations such as emergency response, sole-source goods, or a failed prior tender.

A tender that cannot proceed because no bid met the requirements, bids were unresponsive, or participation was insufficient, triggering review and a possible re-tender or direct appointment.

The procurement committee that prepares selection documents, runs the tender or selection process, evaluates bids, and recommends a winner to the budget holder.

The procurement officer appointed to conduct simpler procurements, such as direct purchasing and small direct appointments, and to manage related documentation and reporting.

The official authorised to commit budget, sign contracts, manage performance, approve payments, and control contract changes on behalf of the procuring entity.

The complete bidding package containing instructions to bidders, requirements, evaluation criteria, draft contract, and forms, issued to all participants on equal terms.

A formal written change to bidding documents issued before the bid deadline to all recipients equally, extending deadlines where needed and becoming part of the contract documents.

The pre-bid meeting and site visit where bidders may ask clarifying questions, with answers recorded and circulated to all participants to preserve equal information.

A bid security instrument, such as a bank guarantee or insurance bond, submitted with a bid to deter withdrawal or modification during the validity period.

A performance security provided by the winner before contract signing, callable if the supplier fails to perform, typically a percentage of contract value and valid through completion.

A retention or maintenance bond held after handover to cover defects appearing during the warranty period, released once maintenance obligations are fulfilled.

The structured assessment of bids against administrative, technical, and price criteria set out in the documents, producing a ranked shortlist and a documented award recommendation.

A scoring method combining technical quality points with price points using stated weights, awarding to the highest combined score rather than to the cheapest compliant bid.

An award basis that selects the lowest-priced bid among those passing administrative and technical compliance, used where requirements are standard and quality is easily verified.

A bid so far below the estimate or other bids that performance risk is suspected, requiring written price analysis and justification before it can be accepted.

A contract with a fixed total price for a defined scope, where the contractor bears quantity risk and payment follows milestones or deliverables rather than measured quantities.

A contract paying per unit at agreed rates for quantities actually performed, so the employer bears quantity risk and payment follows measurement of completed work.

A written amendment changing scope, price, or time under conditions allowed by the contract and rules, requiring justification and formal approval before work proceeds.

An instruction to vary work, issued and priced within the contract's variation mechanism, recorded formally so that time and cost effects are traceable and auditable.

The formal handover of completed goods, works, or services after inspection and testing, recorded in minutes that start the warranty period and support final payment.

The signed record of work progress or completed quantities, used to certify milestone achievement and to support interim payment claims under the contract.

The electronic procurement system operated through a local procurement service unit, hosting tender announcements, document downloads, bid submission, and evaluation records online.

The end-to-end electronic conduct of a tender, including publication, clarification, encrypted bid submission, and online opening, designed to reduce physical contact and tampering.

A certified digital signature that authenticates the signer and protects document integrity, giving electronic bids and contracts legal effect equivalent to handwritten signatures.

A long-term cooperation arrangement where a private partner finances, builds, and operates public infrastructure, recovering investment through user charges or availability payments under a concession contract.

Treating bidders unequally or writing requirements that unfairly favour or exclude particular suppliers, which breaches fair competition and can void the selection.

A situation where a procurement actor's personal, family, or business interest could improperly influence decisions, requiring disclosure, recusal, or replacement from the process.

Any gift, payment, or benefit received in connection with official duties that may influence decisions, which must be reported and may constitute bribery under anti-corruption rules.

The professional conduct standards binding procurement actors, covering integrity, confidentiality, competence, avoidance of conflicts, and accountability for decisions taken.

A formal objection by a bidder to the selection process or its outcome, filed within a short stated period, which must be reviewed and answered before the award is finalised.

A disagreement arising during contract performance over scope, payment, delay, or quality, resolved through negotiation, mediation, arbitration, or court as the contract provides.

An independent examination of procurement decisions, documents, and spending for compliance, value for money, and fraud indicators, producing findings and recommendations for correction.