In an effort to achieve significant benefits and reduce negative impacts on the environment throughout the entire work cycle, the Deputy for Strategic Development and Policy of the National Public Procurement Agency (LKPP) issued NPPA Deputy Decree Number 3 of 2024 concerning the Sustainable Procurement Document Model for Construction Works (NPPA Deputy Decree 3/2024), which has been in effect since 19 February 2024. Find out more about our insights related to this topic in our Legal Brief publication.

1. Legal Brief
Indonesia’s Model Document for
Sustainable Procurement Selection
for Construction Works
APRIL, 2024

2. BACKGROUND
A H R P L e g a l B r i e f
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General
Announcement of Selection
through Prequalification
Instructions to Bidders
General Section, including among others the identification of the
selection working group and the scope of work, funding sources,
tender participants, violations of procurement rules, and other
general procurement provisions.
Selection Document, including its contents, language, provision
of explanations, changes to the selection document, and
additional time for submission of bid documents.
Preparation of Bid and Qualification Documents, including
among others the costs involved in document preparation, bid
prices, and bid guarantees.
Submission of Qualification Data and Bid Documents,
including among others data preparation, qualification data
submission, and deadline for bid submission.
Opening and Evaluation of Bids and Qualifications, including
the opening of bid and qualification files I and II, evaluation and
verification of qualifications, as well as technical clarification and
negotiation along with pricing.
Determination of Winner, including announcement, objections,
and appeals from tender participants.
Failed Tender and Follow-Up Actions, including the failed
tender and subsequent actions.
Appointment of Winner, including the designation of
goods/service provider and confidentiality of the process.
Performance Guarantee and Contract Signing.
Selection Data Sheet
Including among others the duration of work implementation,
elements, criteria, and threshold limits of elements.
Qualification Data Sheet
Including qualification requirements for tender participants.
It encompasses various forms of bid documents, including forms of bid
guarantees, forms of objection and appeal guarantees, domestic content
component submission forms, and forms of Joint Operation (“JO”)
Agreement.
Form of Bid Documents
Instructions for Completing
Qualification Data
Procedures for Qualification Evaluation
Agreements
General Contract Conditions or Syarat-Syarat Umum Kontrak
(“SSUK”), including, among others, general provisions, implementation,
settlement, addenda, contract termination, as well as the rights and
obligations of the provider and contract signatory officials. Further
description of SSUK can be found on Page 8 of this Legal Brief.
Special Contract Conditions or Syarat-Syarat Khusus Kontrak
(“SSKK”), including detailed explanations of provisions as stipulated in
SSUK. Further description of SSKK can be found on Page 8 of this Legal
Brief.
Draft Contract
Technical Specifications and Drawings
List of Outputs and Prices
Other Document Forms
It includes forms such as the letter appointing the goods/service
provider, Letter of Commencement, performance bond, advance
payment bond, and maintenance guarantee.
In an effort to achieve significant benefits and reduce negative impacts on the environment throughout the entire work cycle, the Deputy for Strategic
Development and Policy of the National Public Procurement Agency has issued NPPA Decree Number 3 of 2024 concerning the Model Document for
Sustainable Procurement Selection for Construction Works (“NPPA Deputy Decree 3/2024"), which has been in effect since 19 February 2024.
The development of the Model Procurement Document Model is inherently in line with Article 4 (h) jo. Article 5 (h) of Presidential Regulation Number
16 of 2018 regarding Government Procurement of Goods/Services as amended by Presidential Regulation Number 12 of 2021 (“PR 16/2018”), which
states that procurement of goods/services is carried out with the aim of promoting sustainable procurement.
Furthermore, prior to the drafting of the aforementioned Model Procurement Document, as a follow-up to the provisions of PR 16/2018, the NPPA has
also issued guidelines for the standard procurement documents that serve as references for government procurement documents for goods/services
in all ministries/institutions.
Chapters in Sustainable Model Procurement Documents
Elucidation of PR 16/2018 jo. NPPA Deputy Decree 3/2024

3. Selection Working Group
Kelompok Kerja Pemilihan (“Selection Working
Group”) are human resources designated by the head
of UKPBJ to manage the selection of providers.
Art. 1 (12) PR 16/2018
Procurement Unit for Goods/Services
Unit Kerja Pengadaan Barang/Jasa or Procurement
Unit for Goods/Services (“UKPBJ”) is a department
within the relevant ministry/agency/local government
that serves as the center of excellence for
procurement of goods and services.
Art. 1 (11) PR 16/2018
Selection Working Group consists of 3
(three) people. However, in consideration
with the complexity of the selection, more
members may be added, so long as the
headcount amounts to an odd number.
Art. 13 (2) and (3) PR 16/2018
In conducting its works, the Selection
Working Group may be assisted by an
expert team or an expert.
Art. 13 (5) PR 16/2018
Role in the Selection Process:
Submission, Bid Evaluation,
Qualification Evaluation
In accordance with Chapter III Part A Point 1.1 of the Sustainable Model Procurement Document,
the identity of the Selection Working Group shall be written in Selection Data Sheet (Chapter IV).
The Selection Working Group sets
technical requirements while
considering provisions within the
prevailing laws and regulations
pertaining to tools, types of works,
managerial personnels, list of works
which may be subcontracted, as well
as constructions safety plans.
Chapt. 3 Part A Point 17.4 of the Model Document
Participants must submit bid
documents to the Selection Working
Group through electronic means. Bid
documents submitted through other
qualification forms are not valid.
Qualification data must also be
submitted.
Chapt. 3 Part D Point 25.1 dan 25.3 of the Model
Document
Submission
The Selection Working Group conducts
administration and technical evaluation
towards the bidder’s bids. Administrative
evaluation shall be conducted first with a
pass or fail mechanism, while technical
evaluation is conducted afterwards
through a scoring system with a specific
threshold for passing.
Chapt. 3 Part E Point 28.3, 28.7, and 28.8 of the Model
Document
Offers which do not pass the
administration and technical evaluation
shall not undergo financial evaluation,
as the Selection Working Group. After
the financial offer is opened, the
Selection Working Group shall conduct
price evaluation.
Chapt. 3 Part E Point 28.5 of the
Model Document
Bid Evaluation
Bidders who pass both bid evaluation
and qualification evaluation shall
undergo qualification verification
process.
Qualification verification can be done
online, where the prospective winner
submits unedited electronic photos of
original documents, conduct
verification meetings, and comply
with data verification.
In-person qualification verification
involves inviting participants and
comparing the data provided in the
qualification data with original
documents while also requesting
recordings of these documents.
Chapt. 3 Part E Point 32.1, 32.6, and 32.8 of the Model
Document
Qualification
SELECTION WORKING GROUP
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4. The Tender Process in the Sustainable Bidding Documents Model
Preparation of Bid and
Qualification Documents
The Submission of Qualification
Data and Bid Documents
Opening and Evaluation of
Bids and Qualifications
Bid Award
Business Entity Designation Performance Guarantee
Contract Implementation
• The Bid Document includes: (i) administrative and technical
bids ("File I"); and (ii) price bids ("File II").
• Participants then enter the bid value and upload outputs
and Price Lists to the Electronic Procurement Service or
Sistem Pengadaan Secara Elektronik (“SPSE”).
• The validity period of the bid must comply with SPSE
regulations and can be extended by the Selection Working
Group.
• Participants further complete qualification data through
electronic forms on SPSE.
• Participants agree to and sign the Integrity Pact.
• Finally, the Bid Guarantee is submitted as part of the
administrative document.
• Participants submit Qualification Data through the electronic
form available on SPSE.
• Then, participants shall submit the encrypted Bid
Documents to the Selection Working Group in accordance
with the schedule set in SPSE.
• The schedule for opening File I bids is listed in SPSE. File II
bids will not be opened for participants who do not pass the
administrative and technical evaluation.
• Furthermore, the Selection Working Group will evaluate
Bid Documents based on the uploaded data in SPSE and
record the evaluation results through SPSE.
• The evaluation is divided into two parts: evaluation of File I
bids (including administrative and technical evaluation); and
evaluation of File II bids (including price and qualification
evaluation).
• Online qualification verification is conducted for at least
three participants who meet the requirements. If only one
participant meets the administrative requirements, technical
and price clarifications and negotiations will be conducted..
• The Selection Working Group will announce the winner
through SPSE.
• Objections, along with evidence of deviations committed by
tender participants, must be submitted electronically
through SPSE within five working days after the
announcement of the winner.
The Selection Working Group will issue a Selection Result
Report as the basis for issuing the Provider of Goods/Services
Appointment Letter.
The Goods/Service Provider then submits a performance
guarantee before the contract signing.
The contract signing takes place after the Budget Implementation
List or Daftar Isian Pelaksanaan Anggaran (“DIPA”) has been
prepared.
MECHANISM FLOW OF SUSTAINABLE GOODS/SERVICES
PROCUREMENT IMPLEMENTATION
A H R P L e g a l B r i e f

5. Selection Documents
Tender Documents Qualifications Documents
Offer administration
documents:
(i) Offer letter; (ii) Bid bond;
and (iii) JO agreement
letter (if in the form of JO)
Offer technical
documents:
(i) Work methods; (ii)
Equipment ownership proof
(owned/rented); and (iii)
Other documents
Price offer documents Draft agreement (contract)
Technical specification
and Image
Detailed Engineering
Design (DED)
Qualification evaluation
procedure
Qualification data sheet Qualification form
Instruction on filling
qualification form
Integrity pact
Letter of appointment of
goods/services provider
(SPPBJ)
Letter of order to start
work or Surat Perintah
Mulai Kerja (SPMK)
Guarantee letter
(commencement, down
payment, maintenance)
Equipment lending
agreement
Statement of ability to meet the
requirements of sustainable
criteria
Other Documents
TKDN submission form Imported goods list form
Construction safety plan Other required documents
REQUIRED DOCUMENTS
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6. Matters that would require attention of the participants regarding the procurement documents for construction work is as follows:
The procurement document is created to help participants in preparing the offer documents in accordance with PR 16/2018, its amendments, and
its derivative regulations. The selection working group may adjust the selection documents according to their needs as long as it does not clash
with the existing regulations. If there are any clashes between requirements written in the selection documents and what is written in SPSE, then
the requirements written in the selection documents prevail. In the event that the requirements written in Election Data Sheet or Lembar Data
Pemilihan (“LDP“)/ Qualification Data Sheet or Lembar Data Kualifikasi (“LDK”) and Instructions to Participans or Instruksi Kepada Peserta (“IKP”)
clash, then the requirements written in LDP/LDK is used.
The participants must be careful with actions that violate procurement regulations, such as relaying false documents/information to fulfill
requirements, attempt to influence the selection working group, conspire with other participants to control offer prices, conduct Corruption Collusion
Nepotism or Korupsi Kolusi Nepotisme (“KKN”) in the selection process and forfeit without an acceptable reason.
The parties involved also have the responsibility to avoid conflict of interest, including holding more than one position in companies participating in
the same procurement, a provider which has been appointed as a design consultant/supervisor/consultant management also acting as the executor
of the construction work that he designed/supervised, Contract Signing Officer or Pejabat Pembuat Komitmen (“PPK”)/Selection Working Group
both directly or indirectly controlling/operating a participating company and/or several companies that are participating in the same procurement,
controlled directly or indirectly by the same parties, and/or 50% or more ownership of the stocks are owned by the same shareholders.
In the event that the participants conduct a JO, then:
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JO is conducted before submitting the offer documents, consisting of national companies, or between business actors (large-scale
companies, mid-scale companies, or a mixture between large-scale and mid-scale companies, or collaboration of small-medium
enterprises). The number of members in Joint Operation is limited to maximum of three companies in one JO.
Participants must have a JO agreement which include:
the name of the JO in
accordance with the
qualification form
the name of the leading company
(lead firm) and member companies
of the JO
signature of each
company joined in the JO
the prohibition to change the JO agreement
during the procurement process, the
execution of the construction, up until the end
of the construction work
the capital share of each
company
in the case that JO agreement ends before the conclusion
of the construction work, then the responsibility to finish the
work is given to the lead firm of the JO or in accordance to
the stipulation of the JO agreement.
the name of individuals in the
lead firm as representatives of
the JO
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The company which represents the JO in the construction work procurement process is the lead firm. The JO lead firm must have
qualifications in the same level or higher than members of the JO with majority capital up to 70% maximum.
Service providers that want to establish a JO to fulfill work that can be procured, may include general construction work providers,
specialist work providers, mechanical/electrical work providers, and/or other skills.
SELECTED POINTS OF ATTENTION
FOR PARTICIPANTS (1/2)
General Provisions
Special Provisions
A H R P L e g a l B r i e f

7. Matters that would require attention of the participants regarding the procurement documents for construction work is as follows:
Bid Bond
Performance Bond
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The nominal for bid bond is 1% - 3% from the Estimated Contract Value (Harga Perkiraan Sementara or “HPS”)
The validity period of the bond is until the signing of the contract
The provisions of the bid bond and its submission is as follows:
• Issued by the general bank/guarantee company/ insurance
company/ financing institution/ guarantee institution/ insurance
institution to push Indonesia’s export
• Established/recommended by Indonesia’s Financial Services
Authority
• Soft copy of bid bond submitted as part of administration
document
• Bid bond can be submitted in the form of scanned
document/picture from camera/handphone without any editing
• The bid bond is submitted directly or through postal service to the
selection working group maximum before the deadline of the offer
submission which is proven by a receipt
• In the event that the bid bond is not received by the selection
working group by the deadline, then the offer is considered
ceased if based on the clarification to the guarantee publisher
that the disbursement of the bid bond requires the authentic bid
bond document. All risks of tardiness and damage to the bid bond
document is borne by the participants
The performance bond is given by the provider before the contract signing
The performance bond is submitted to the PPK with the provisions as follows:
Performance bond is returned to the provider after:
• Issued by general bank/guarantee company/insurance
company or special institution that operates in the field of
financing, guarantee, and insurance to push Indonesia’s export
• Performance bond publisher has been established/acquire
recommendation from the Financial Services Authority
• Validity period of the performance bond is from the date of the
contract signing until the first handover of work based on the
contract
• The name of the provider is the same as the name written in
the performance bond letter
• The value of the performance bond is not less than the
requirement and written in numbers and letters
• The name of the PPK that receives the performance bond is the
same as the name of the PPK that signed the contract
• The work package guaranteed is the same as the work package
written in the Letter of Appointment of the Goods/Services
Provider.
• Performance bond must be disbursable without requirement with
the value of the guarantee maximum 14 working days after the
statement of default from the PPK is received by the performance
bond publisher
• Performance bond by JO is written in the name of the JO or the
name of each member of the JO (if separate); and
• Has the name, address, and signature of the guarantor
• Handover of all the work
• Handover of the maintenance guarantee worth 5% of the contract; and/or
• Payment of the last term/month/in bulk after reduction of 5% retention fee from the contract value
SELECTED POINTS OF ATTENTION
FOR PARTICIPANTS (2/2)
A H R P L e g a l B r i e f

8. In SSUK there are provisions stipulated as follows:
General provision, containing the definition or terms
including Government Internal Supervision Officer
(Aparat Pengawasan Intern Pemerintah), contract
price, JO, HPS, force majeure, SPMK, and other terms.
The general provision also stipulates the
implementation of SSUK extensively in the execution of
construction work, the use of Bahasa Indonesia and
applicable Indonesian regulations, correspondence,
legitimate representative of each party, KKN, abuse of
power and fraud. The origin of materials which include
the detail of domestic and imported components,
financial bookkeeping, taxation, diversion of contracts,
abandonment, independent providers, JO, work
supervisors, findings, and location access is also
regulated.
Execution, finishing, addendum, and termination of
contract, which stipulate the contract period, handover
of work location and personnel, SPMK, mobilization,
joint examination, domestic production use, and
reporting of inclusion of female work force, disability,
and interns. Execution period, delay by work
supervisor, supervising meeting, early warning, late
work execution and conditions causing the critical state
of the contract, opportunities for providers in certain
matters, handover of work, takeovers, design and
operation guideline contract, and maintenance are also
stipulated. In regards to addendum, the matters set
forth are changes in contract, pricing, work schedule,
and personnels/managerial. Force majeure is also
stipulated. For matters regarding the termination of
contract, it is regulated in more detail by stipulating
contract termination by the PPK, contract termination
by the provider, finishing of the work, end of contract,
and leaving the work results.
Rights and responsibilities of the provider, including receiving
payment in accordance with the price, accommodation of facilities
to ease work, reporting, execution of work in accordance with the
schedule, being thorough in working, giving necessary details,
taking necessary actions, and other rights and responsibilities that
arise due to the work scope. Other matters stipulated include use
of documents (information), intellectual property rights, risk
management, protection of worker’s rights, environmental
preservation, insurance, ownership of documents, subcontractors,
transfer of experience/skills, payment of fines, and guarantees.
Rights and responsibilities of the PPK, which includes
supervising and examining, receiving reports, receiving the work
result, paying for the work, providing facilities for the ease of work,
and evaluating the work of the provider. Other matters stipulated
include compensatory events.
Construction workers and/or equipment of the provider,
including the requirements and condition of the workers, the
condition of the equipment used to work, and the work secrecy.
Payment to the provider, including the price of contract, payment,
fine, compensation, work days, end of work calculation, and
suspension.
Quality control, including supervision and examination, temporary
work appraisal by PPK, testing and improvement of quality defects,
and construction defects.
Conflict resolution, including the earnest effort, deliberation
principles, conflict resolution medium, and good faith of the parties.
Matters stipulated specially in the contract include correspondence, legitimate representations of the parties, disbursement of guarantee, execution
period (for the handover of some of the work), maintenance period (for the handover of some of the work), as-built design and operation guide,
maintenance, payment of bills, rights and responsibilities of the provider, provider actions that require the approval of the PPK, provider actions that
require the approval of the work supervisors, ownership of documents, facilities, compensatory events, amount of down payment, work performance
payment, late fines, age of construction, the coverage for construction fails, and conflict resolution.
There are other matters specifically stipulated such as the list of works that are subcontracted, list of personnels and managerial, list of main
equipment, list of female work force, disability, and interns with the report, local materials, environmental-friendly components, construction safety
plans, construction safety commitment pact, identification of dangers, risk assessment, and the determination of risk control.
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General Provisions of the Contract (SSUK)
Special Provisions of the Contract (SSKK)
SSUK & SSKK
A H R P L e g a l B r i e f

9. 01
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Providing documents or information that are false/inaccurate to meet the
requirements specified in the Selection Document, including making claims to comply
with technical regulations and sustainability, such as certifications or environmental
benefits, which cannot be independently verified.
Attempting to influence the Selection Working Group in any form or manner to fulfill
the desires of participants that contradict the Procurement Document and/or legal
regulations.
Engaging in collusion with other participants to manipulate bid prices.
Participants and parties involved in this procurement are obliged to comply with procurement
regulations by refraining from the following actions:
Engaging in corruption, collusion, and/or nepotism in the selection process.
Withdrawing from participation for reasons deemed unacceptable by the Selection
Working Group.
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05
Consequences
Participants found to have
engaged in the aforementioned
are subject to the following
administrative sanctions:
• Disqualification from the
selection process or
cancellation of the winner's
designation.
• Forfeiture of the bid bond (if
applicable).
• Blacklisting sanction.
General Rules and Consequences
Blacklist as a Sanction
The blacklisting sanction is imposed on participants/providers if:
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03
They submit false or incorrect documents or
information to meet the requirements specified in the
Procurement Document.
They are suspected of colluding with other
participants to manipulate bid prices.
They are suspected of engaging in corruption,
collusion, and/or nepotism in the selection of
providers.
They withdraw from participation for reasons deemed
unacceptable by the Selection Working Group.
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08
Their bid price is below 80% of the nominal value of
the HPS and they refuse to increase the Performance
Bond value to 5% of the HPS.
The winner withdraws from the selection before signing
the contract for reasons deemed unacceptable by the
Contracting Officer.
The provider fails to fulfill the contract, complete the
work, or the contract is unilaterally terminated by the
Contracting Officer due to the provider's fault.
The provider fails to fulfill maintenance obligations as
required.
Chapt. 3 Part A Point 4 of the Model Procurement Document
Chapt. 3 Part A Point 6 of the Model Procurement Document
SANCTIONS
A H R P L e g a l B r i e f

10. We will continue to follow the developments on this topic and provide additional information as it
becomes available. If you have any questions on this topic, please contact:
M. Rifki Maulana
rifki@ahrplaw.com
Thea Mutiara Khalifa
thea@ahrplaw.com
Cut Hasri Nabila
nabila@ahrplaw.com
This publication has been prepared by AHRP for educational and informational purposes only. The information contained in this publication is not
intended and should not be construed as legal advice. Due to the rapidly changing nature of law, AHRP makes no warranty or guarantee
concerning the accuracy or completeness of this content. You should consult with an attorney to review the current status of the law and how it
applies to your circumstances before deciding to take any action.
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