Direct procurement thresholds in 2026: what are the limits for consultancy and other services?

By Mohammad Hilmi Bisri, S.Kom.. Published 9 October 2026.

Direct procurement (Pengadaan Langsung) is how a government agency buys low-value goods or services straight from a supplier, without a tender or selection (open competition between suppliers). The rules are now set out in Presidential Regulation (Peraturan Presiden, Perpres) No. 46 of 2025, promulgated on 30 April 2025. It is the second amendment to Perpres 16 of 2018 on Government Procurement of Goods/Services.

The thresholds

Above these thresholds, the agency uses another procurement method: a tender or fast tender for goods, construction work, and other services, and a selection for consultancy services.

An electronic procurement system is required

Direct procurement of goods, construction work, and other services worth more than IDR 50 million must use an electronic procurement application with transaction features (Article 38(8)). For consultancy services, direct procurement must use that application whatever the value (Article 41(7)).

Packages may not be split

Article 20(2) prohibits splitting a procurement package to avoid a tender or selection. This means that a single job worth more than the threshold may not be divided into several small packages so that it can go through direct procurement. The same article also prohibits merging packages that small businesses could otherwise carry out.

A 40% share for micro enterprises, small enterprises, and cooperatives

Article 20(3) requires the Commitment-Making Officer (Pejabat Pembuat Komitmen, PPK), the official who signs procurement contracts, to allocate at least 40% of the goods/services budget to products of micro enterprises, small enterprises, and cooperatives made in Indonesia. Local suppliers set up as a single-shareholder limited company (perseroan perorangan) belong to this group. The perseroan perorangan is a legal form for micro and small businesses.

Examples in information technology

In practice, building applications and installing networks are often classed as other services, so their direct procurement threshold is IDR 200 million. IT health checks, audits, and drawing up digitalisation plans count as consultancy services, so their threshold is IDR 100 million. Even so, the PPK decides the type of procurement based on the nature of the work.

Summary for PPKs

• First confirm the type of work, other services or consultancy, because the thresholds differ.
• Above IDR 50 million, direct procurement of other services must go through the electronic procurement application. Consultancy services always go through it.
• Do not split one job into several packages to bring it under the threshold.
• Consider micro and small business suppliers to meet the 40% share.

This article is a summary to help readers, not legal advice. For official decisions, refer to the full text of Perpres 46 of 2025 and the current rules of LKPP (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah, the National Public Procurement Agency).