THE REFUSAL OF BIDS

i. the proposals of tariffs of subsidies, charges, costs and rental fees proposed in forms of Build Operate Transfer BOT, Build Own Operate BOO, Develop Operate Transfer DOT, Rehabilitate Operate Transfer ROT, Rehabilitate Operate Own ROO, and other similar forms, resulting in the lowest deduction from the present value; ii. the timetable proposals or amortization payment in forms of Build Transfer BT, Build Lease and Transfer BLT, Build Transfer and Operate BTO, and other similar forms, resulting in the lowest deduction from the present value; or iii. the timetable proposals of the financing to parties in charges in leasing and other similar forms resulting in the highest deduction from the present value. 2. In the case of the private party serving as the initiator of a project and the project is offered to the public, the initiator shall be entitled to obtain additional value in the bid evaluation whose amount is determined by personneltechnical departments in charge, by fulfilling the following requirements : a. the bidder has submitted the project proposal to personneltechnical department in charge on the basis of initiative of the relevant private party; b. the bidder has executed pre-feasibility study resulting in the project included in the list of infrastructural development projects; c. pre-feasibility study is opened to all other participants; d. the bidder has passed the tender pre-qualification and hisher tender fulfilled technical requirements; e. there are found out more than one tender fulfilling technical requirements.

V. THE REFUSAL OF BIDS

1. Personneltechnical departments in charge shall be allowed to refuse bids existing, and also execute repeat bids. 2. Repeat bids shall be based on the considerations : 1 the bids proposed are not fulfilling the requirements stipulated in bidding documents; or 2 the requirements of bids are not fulfilled, wherein only less than two bids complying with the requirements. 3. In the case of only one bid fulfilling the requirements technically and personneltechnical departments in charge proposing to make agreement with the said bidder, personneltechnical departments in charge need to obtain approval from the Team for Evaluation of Procurement to undertake a negotiation with the bidder. 4. The negotiation as meant in No. 3 above will ensure that the bid aims at yielding the best result in the interest of consumers and Indonesian state. The negotiation must be concluded before personneltechnical departments in charge deliver their recommendations to obtain the approval of the Team for Evaluation of Procurement on the basis of the negotiation with the private party. 5. In the case of the Team of Evaluation of Procurement approving a negotiation with a bidder fulfilling the said requirements, the other bids will be refused. 6. The above mentioned bidder can be a company or a group of companies or a combination of companies proposing a tender cooperatively. 7. Within a period of 120 days from the closing date of the ternder, personneltechnical departments in charge shall deliver the following matters to the Team for Evaluation of Procurement to be observed further : 1 the report of evaluation results and recommendations of personneltechnical departments in charge to make contracts; 2 the concepts of contracts which are not yet signed with bidders succeeding to pass selection 8. Within a period of 28 days after personneltechnical departments in charge send the documents as meant in No. 7 and in the case of the Team for Evaluation of Procurement approving the tender process and knowing that all principles, the procedures and government policies contained in the attachment to this Presidential Decree being fulfilled, the Team for Evaluation of Procurement shall be allowed to approve the recommendations of personneltechnical departments in charge on the result of bidding. 9. The Team for Evaluation of Procurement shall not be allowed to issue approval for the projects which are not fulfilling the provisions in this Presidential Decree.

VI. SIMPLIFICATION OF COMPETITIVE TENDER