Presidential Regulation 46/2025: Advancing Government Procurement

Introduction to the New Procurement Regulation

Presidential Regulation (Perpres) Number 46 of 2025 marks the second amendment to Perpres Number 16 of 2018 regarding Government Procurement. This updated regulation introduces several key improvements. Specifically, it aims to enhance efficiency, transparency, and accountability across Indonesia. The government also seeks to maximize the use of domestic products and accelerate the procurement cycle at all levels.

Overall, Perpres Number 46 of 2025 focuses on improving the quality of services and goods funded by APBN, APBD, and APB Desa. Notably, this regulation does not only apply to ministries and large agencies. It introduces groundbreaking guidelines for village governments. These new rules allow villages to conduct procurement activities with greater clarity and legal certainty.

Key Changes in Presidential Regulation 46/2025

One of the most significant shifts in this regulation is the mandatory priority for domestic products. This policy empowers local industries and MSMEs while encouraging the use of local raw materials. By implementing this strategy, the government hopes to reduce reliance on imports and stimulate the domestic economy. Furthermore, it creates more opportunities for local entrepreneurs to participate in national development.

Another innovative aspect is the detailed regulation of Village Procurement. Previously, villages lacked a comprehensive guide for managing their budgets for goods and services. This often led to implementation gaps. Now, Perpres Number 46 of 2025 provides a solid legal basis. Consequently, villages can independently manage resources funded by the APB Desa, ensuring that development meets local community needs directly.

Moreover, the regulation optimizes Government Procurement through digital transformation. By simplifying bureaucratic processes and utilizing e-procurement platforms, the system becomes more transparent. This digital approach minimizes the risk of budget misuse and ensures a faster procurement timeline, which is essential for national infrastructure projects.

Village Self-Management: Articles 64A and 64B

Articles 64A and 64B of Perpres Number 46 of 2025 specifically address the mechanisms for village-level activities. These articles define how Village Self-Management (Swakelola Desa) should operate.

• Article 64A: This article states that the Village Government can perform procurement through self-management for activities funded by the APB Desa. This grants villages the autonomy to execute projects internally, provided they meet official standards and efficiency principles.
• Article 64B: This section emphasizes that Government Procurement in villages must uphold principles of effectiveness and compliance. It ensures that the process remains fair and competitive. Therefore, it provides equal opportunities for micro and small businesses to thrive within the village ecosystem.

Previous Regulations: Perpres 16/2018 and Perpres 12/2021

To understand the current changes, we must look at the previous foundations. Perpres Number 16 of 2018 established the original framework for government procurement of goods and services. It covered everything from initial planning to the final handover of work. Later, Perpres Number 12 of 2021 refined these rules by strengthening integrated e-procurement systems. These layers of regulation have paved the way for the more advanced digital and inclusive standards found in 2025.

Implementation Challenges for 2026

Despite the clear benefits, Perpres Number 46 of 2025 faces several hurdles. A primary concern is the limited capacity of human resources in rural areas. Many local officials still require intensive training to master APBD and APB Desa procurement procedures. Without proper education, the risk of administrative errors remains high.

Additionally, the lack of digital infrastructure in remote regions poses a challenge. While the government pushes for e-procurement, many villages still struggle with unstable internet connectivity. To ensure this regulation works effectively, the government must prioritize digital infrastructure alongside regulatory updates. Only then can the procurement system be truly inclusive and efficient across the archipelago.

Conclusion

Perpres Number 46 of 2025 brings essential changes to the Indonesian procurement system. By focusing on domestic products and strengthening Village Self-Management, it creates a more resilient economy. However, addressing the gaps in human resource capacity and digital access is vital. With proper support, this regulation will significantly boost national development and community welfare.

Visit the Village Regulations page for official access.