KPU Directly Appoint Contracts

The General Elections Commission (KPU) can directly appoint contractors to supply poll equipment and services as long as it uses the standard prices set by the government, Vice President Jusuf Kalla said Friday.


The statement contradicted that made a day earlier by Home Minister Mardiyanto, State Minister for Administrative Reforms Taufik Effendi and State Minister for National Development Planning Paskah Suzetta, who all rejected a proposal for direct appointments made by the KPU.


“Presidential Decree No. 80/2003 allows for the direct appointment [of suppliers], so there is no need for a new decree if the KPU wants to go this way,” Kalla, who also chairs the Golkar Party, said.


However, he stressed that the appointed contractors must apply the standard prices of election materials set by the government.


The KPU had submitted a draft presidential decree with President Susilo Bambang Yudhoyono to allow it to avoid open tenders for its procurement projects worth trillions of rupiah.


The 2003 decree on the purchase of goods and service states that contracts by state agencies worth more than Rp 50 million must be conducted through open tenders.

Article 17 of the presidential decree says direct appointment could only be made if at least three contractors were involved and they had passed pre-qualification selections.


It stipulates that direct appointment can also be applied in certain special conditions with negotiated prices.


Procurement contract expert Harmawan Kaeni said special conditions could be categorized as natural disasters or issues of state security.


“Direct appointment cannot be implemented in all situations. In terms of the upcoming elections, I see no emergency situation that would warrant such a decision.”

KPU chairman Abdul Hafiz Anshary said Friday his office might directly appoint companies to supply logistic materials for the second round of presidential elections. The presidential election is slated on July 28 with the second round to be held on Sept 13.

The Indonesia Forum for Budget Transparency said direct appointment is highly rampant to graft as the public and election watchdogs are denied access to control the procurement process