Presidential Regulation (Perpres) Number 118 of 2020 concerning the Procurement of Industrial Technology through the Key Turn Project, aims to accelerate the mastery and application of industrial technology so that it can be mastered, utilized and developed domestically.
Previously, Indonesian President Joko Widodo (Jokowi) had signed Presidential Regulation (Perpres) Number 118 of 2020 concerning the Procurement of Industrial Technology through the Key Turn Project on December 21, 2020.
Reporting from https://jdih.setkab.go.id, Monday (15/3/2021), the issuance of the Presidential Decree is to implement the provisions of Article 39 paragraph (3) of Law Number 3 of 2014 concerning Industry which has been amended by Law Number 11 of 2020 concerning Job Creation.
Described in Article 1, Industrial Technology Procurement through the Key Turn Project is the procurement of technology by purchasing a complete technology project starting from assessment, design and engineering, implementation (operation), and delivery in a ready-to-use condition.
In certain circumstances, the Government may procure Industrial Technology through the Key Turn Project. These certain circumstances include conditions in which the need for industrial development is very urgent while technology has not been mastered in the country.
“Technology has not been mastered as referred to covering the condition of industrial technology which has not been controlled partly or wholly domestically,” states the provision of Article 3 paragraph (4).
Furthermore, the urgent need for Industrial development as referred to includes conditions, first, the industrial technology required cannot be immediately procured domestically through research and development, research and development contracts, joint ventures, transfer of rights through licenses, and / or technology acquisition.
Second, there is a threat to the sustainability of the domestic industry and / or the national economy; and third, there is the potential to lose the opportunity to significantly benefit from industrial technology.
“Procurement of Industrial Technology through the Key Turn Project is carried out by taking into account the aspect of efficiency; effectiveness; value-added; competitiveness; independence, preservation of environmental functions; and security, safety and health, ”states the provision in Article 4.
Meanwhile, the project proponent plans the proposed Industrial Technology Procurement through the Key Turn Project, which must be included in the proposed procurement document.
Planning as intended at least contains the reasons for the implementation of Industrial Technology Procurement through the Key Turn Project according to certain circumstances; feasibility study; industrial technology audit; the scope, form and period of technology transfer carried out by industrial technology providers; and identification of Industrial technology providers.
In addition, the industrial technology reliability status; socio-economic, environmental, security and safety impact analysis; value benefit analysis; project financing, implementation and supervision schemes; risk analysis and mitigation; potential use of industrial technology; and the stages of the technology transfer process.