Jakarta,(ANTARA News) - The government eventually turned down a proposal for an increase in the value of contracts for infrastructure projects under a cooperation between the government and private businesses, because the proposal did not meet the legal requirements.
Chief Secretary of the Government`s Goods and Services Procurements Policy Institution (LKPP) Agus Rahardjo said in Jakarta that the government`s rejection was officially laid down in a Finance Ministerial Decree No 411/2008 issued on August 15.
"The government, in this case the Minister of Finance, has decided that there would be no escalation (of value) for 2008 contracts, by virtue of the Finance Ministerial Decree No S-411/MK.02/2008, dated August 15," Agus said.
In the meantime, LKPP Deputy for Strategies and Regulations Agus Prabowo added that the basis of the Finance Ministerial decree which complies with a consideration of the LKPP that the proposal for an escalation has no legal umbrella of Presidential Decree No
80/2003 on the procurement of goods and public services, stipulating that there will be no escalation or optimizing of projects in a single year, except for multi-year projects. (*)