PROCUREMENT OF GOODS AND/OR SERVICES
AT PT DAHANA (Persero)
Procurement of Goods and Services constitutes one of crucial activities in order to support PT DAHANA (Persero)’s operational activities and therefore the Board of Directors imposes Directors Regulation Number: DHN-1.7-MRI-PERDIR.003 that refers to Regulation of Indonesia’s SOEs Minister number: PER-08/MBU/12/2019 dated 12 December 2019 Guidelines for State-owned Enterprises’ Procurement of Goods and Services.
PRINCIPLES
(1) Procurement of Goods and Services shall apply the following principles:
- Efficient, which means that Procurement of Goods and/or Services shall be made in order to reach an optimum and best result in a timely manner by using the optimal cost ability in a reasonable way and not merely on the basis of the lowest price. For strategically significant Procurement of Goods and/or Services, total cost of ownership (TCO) may be applied;
- Effective, which means that any procurement of goods and/or services must be in accordance with the designated needs and provide the greatest benefit in accordance with the targets set.
- Competitive, which means that any procurement of goods and/or services must be open to such providers of goods and/or services that meet the requirements and are carried out through fair competition among providers of goods and/or services that are equal and meet certain requirements/criteria based on clear and transparent provisions and procedures;
- Transparent, which means that all provisions and information regarding the Procurement of Goods and/or Services including the technical requirements for procurement administration, evaluation procedures, evaluation results, determination of prospective Goods and/or Services Providers, are open to interested Goods and/or Services Provider participants;
- Fair and Reasonable, which means providing equal treatment to all prospective qualified Providers of Goods;
- Open, which means that Procurement of Goods and/or Services is available tp any qualified Goods and/or Service Providers; and
- Accountable, which means completion of targets and goals in an accountable way as to avoid any misuses and irregularities.
(2) Users of goods and/or services shall prioritize utilization of domestic production, national design and engineering, as well as expanding opportunities for small businesses a long with the quality, price and purpose that can be accounted for.
(3) Users of goods and/or services may give preference to the use of domestic production while observing the provisions of the prevailing laws and regulations in the context of encouraging domestic industry growth.
(4) Users of goods and/or services can perform synergies between SOEs/Subsidiaries/SOEs Affiliated Companies.
(5) The Goods and/or Service Provider is the owner of the product or service in accordance with the line of business of the respective Goods and/or Service Provider.
POLICY
Procurement of Goods and/or Services is required to implement the following policies:
a. Improving the quality of a consolidated planning and strategy for the Procurement of Goods and/or Services to optimize value for money;
b. Aligning procurement objectives with the achievement of company objectives;
c. Carrying out more transparent, competitive, and accountable procurement of goods and/or services;
d. Prioritizing domestic products in accordance with the provisions for the utilization of domestic production;
e. Providing opportunities for national business actors and small businesses;
f. Strengthening institutional capacity and Human Resources for the Procurement of Goods and/or Services;
g. Utilizing the information technology;
h. Providing opportunities for subsidiaries and/or synergies between SOEs/Subsidiaries/SOE Affiliated Companies;
i. Carrying out strategic, modern, innovative procurement; and/or
j. Strengthening procurement performance measurement and risk management.
ETHICS OF PROCUREMENT
Procurement of goods and/or services shall apply procurement ethics which includes:
a. Carrying out tasks in an orderly manner along with the sense of responsibility to achieve the goals, smoothness, and accuracy of the objectives of the Procurement of Goods and/or Services;
b. Working professionally, independently, and maintaining the confidentiality of information which by its nature shall be kept confidential to prevent irregularities in the Procurement of Goods and/or Services;
c. Preventing intervention of each other, either directly or indirectly, resulting in unfair business competition;
d. Accepting and being responsible for all decisions made in accordance under the written agreement of the parties concerned;
e. Avoiding and preventing conflicts of interest of related parties, either directly or indirectly, which results in unfair business competition in the Procurement of Goods and/or Services;
f. Avoiding and preventing wastage and leakage of state/company finances;
g. Avoiding and preventing abuse of authority and/or collusion; and/or
h. Not accepting, nor offering, nor promising to give or receive any gifts, rewards, commissions, rebates, funds from or to any party who is known or reasonably suspected to be related to the Procurement of Goods and/or Services.
