HEALTH MINISTRY PROPOSES REVISION OF GOVERNMENT REGULATION NO. 23/2005

            The Health Ministry proposes revision of Government Regulation No. 23/2005 on Management of Finances of Public Service Agency (BLU), following not a small number of regions who not yet understood the implementation of BLU so that the regulation causes uncertainty in the regions. And, the Health Ministry proposes BLU work units, at central and regional government levels, to continue using Presidential Decree No. 54/2010 on Procurement of Government Goods/Service as the only reference for the procurement of goods and services.

         Freshly Hutapea of the Directorate General of Health Promotion Development of the Health Ministry, proposes revision of the provisions in Government Regulation No. 23/2005. The reason is, according to Freshly, because the regulation stated that BLU can be released, party or wholly, from generally application provisions related to procurement of goods and services. This provision becomes a reference for the work unit that BLU flexibility.

        Freshly admitted that some Articles in Government Regulation No. 23/2005 cause confusion to BLU stakeholders, at central as well as regional government levels. Almost all SKPD (Satuan Kerja Perangkat Daerah), not only Regional Public Service Agency (BLUD) in Health Affairs who experiences problem related to the implementation of BULD.

            According to him, procurement for health equipment is very difficult. He was pessimistic that it will obtain a good-quality health equipment if goods procurement is done through tender. Tender tends to seek cheep prices. It is difficult to obtain good quality product at cheap price. Freshly considers that this problem becomes that in Government Regulation No. 23/2005 there is a grade system.

            He considers that revision of Government Regulation No. 23/2005 is a proper action for this time. He said that all parties are ready to give inputs and proposals concerning revision of Government Regulation No. 23/2005. Currently, there are not a small number of goods purchased which are not in accordance with the expected quality. So it causes un-optimality in the services provided, which will finally negatively affect the society. He proposes that in the future there should not only be grade system, but there must also be a merit system in order to obtain the best products.

            He explained that at the end of 201, the Health Ministry invited managers of BLU and Supervisory Council (Dewan Pengawas) to discuss matters concerning implementation of BLU. The matters discussed are, amongst others, budgeting, tariff, and procurement of goods/services. In that meeting, the Finance Ministry promised to grant more flexibility to BLU. BLU is said to have specialty as it is given flexibility, even though procurement of health equipment is still very difficult to be done, he said.   

 Business News - February 22, 2012