Procurement of goods and services in villages: the rules in force and the practical steps

By Mohammad Hilmi Bisri, S.Kom.. Published 10 October 2026.

Village procurement is how a village government obtains goods or services paid for from the APB Desa (Anggaran Pendapatan dan Belanja Desa, the village budget). There are two ways to do it: the village does the work itself (swakelola), or it buys from a supplier.

Rules in force as of October 2026

• Presidential Regulation (Peraturan Presiden, Perpres) No. 46 of 2025 (external site) has been in force since 30 April 2025. It adds Articles 64A to 64C on village procurement. The details are left to regulations issued by the regent or mayor (bupati/wali kota), which follow the guidelines of LKPP (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah, the National Public Procurement Agency).
• LKPP Regulation (Peraturan LKPP) No. 12 of 2019 (external site) on Guidelines for Drawing Up Procedures for the Procurement of Goods/Services in Villages is still in force. LKPP held a public consultation on a draft amendment on 10 March 2026, partly to bring it into line with Perpres 46/2025. As of 10 October 2026, the amendment was not yet listed on LKPP's legal documentation website (JDIH).
• The regent's or mayor's regulation (Perbup) sets out the procedures that villages use day to day (Article 52(6) of Minister of Home Affairs Regulation (Peraturan Menteri Dalam Negeri, Permendagri) No. 20 of 2018 on Village Financial Management).

Villages in Jombang Regency follow the Jombang Perbup currently in force. You can ask for a copy from the village facilitator (pendamping desa) or from the regional government unit that guides village procurement (Article 15 of LKPP Regulation 12/2019).

Swakelola or a supplier

Swakelola means that the goods or services are produced by the TPK (Tim Pelaksana Kegiatan, the village activity team) and/or the local community themselves. This approach comes first (Article 64B(1) of Perpres 46/2025 and Article 5(1) of LKPP Regulation 12/2019).

If the work cannot be done through swakelola, in part or in full, the village buys from a supplier (Article 5(2) of LKPP Regulation 12/2019). The examples in Attachment I to that regulation include buying computers, printers, and paper, and internet subscriptions.

Suppliers are chosen in this order: a supplier in the village itself; if there is none, a supplier in a nearby village in the same regency or city; if there is still none, another supplier. The procurement uses products of micro enterprises, small enterprises, and cooperatives made in Indonesia (Article 64B of Perpres 46/2025).

Methods and thresholds

LKPP Regulation 12/2019 sets out three methods for choosing a supplier. Its value limits are given as example value bands (Attachment I, Chapter III, letter B, point 2, letter c).

The next letter, d, states that these value bands "dapat ditetapkan berbeda oleh Bupati/Walikota sesuai dengan wilayah masing-masing" (may be set differently by the Regent/Mayor according to their respective areas). So the figures that bind your village are the ones in the Perbup.

Perpres 46/2025 adds that village procurement through suppliers is done by e-purchasing, meaning purchases through the electronic catalogue system (Article 64B(4)). Until e-purchasing can be carried out, villages may use other methods for up to 2 years after the Perpres came into force (paragraph (5)). LKPP Regulation No. 2 of 2026 on the Electronic Catalogue states that village governments may carry out e-purchasing (Article 12(9)). The e-purchasing process is explained in the article on how to buy software through e-Katalog.

Who does what

• The village head appoints the TPK chosen at the Musrenbangdes (musyawarah perencanaan pembangunan desa, the village development planning meeting), announces the procurement plan in the RKP Desa (Rencana Kerja Pemerintah Desa, the village government work plan) before procurement begins, and settles disputes between the Kasi/Kaur and the TPK (Article 9 of LKPP Regulation 12/2019).
• The Kasi and Kaur are the budget activity implementers, or PKA (pelaksana kegiatan anggaran) (Article 6 of Permendagri 20/2018). In procurement, they finalise the preparation documents, sign the transaction records, oversee the work, and accept the results (Article 10(2) of LKPP Regulation 12/2019).
• The TPK has at least 3 members, always an odd number, drawn from village officials, village community organisations, and the public. The TPK carries out swakelola work, selects and appoints suppliers, inspects the results, and announces them (Article 11).

Main documents

For purchases through a supplier, the Kasi/Kaur prepares the schedule, the technical specifications or terms of reference where needed, the HPS (harga perkiraan sendiri, the owner's cost estimate), and a draft agreement (Attachment I to LKPP Regulation 12/2019, Chapter II, letter B). The HPS is based on market prices in the village or the nearest village, and it includes VAT (PPN). The supplier's administrative requirement is a signed statement that its business details are true. For purchases such as motor vehicles, generators, and tractors, and for Lelang, the requirements are a business licence and an NPWP (tax identification number) (Attachment I, Chapter III, letter B, point 1, letter g).

The transaction records are proof of purchase (till receipts, sales notes, or receipts) or a written agreement. The results are accepted with a handover report (Berita Acara Serah Terima, BAST), passed to the village head with a transfer report, and then filed.

Steps for a website, a letter service application, or office Wi-Fi

1. Put the activity and its procurement plan into the RKP Desa (Attachment I, Chapter I of LKPP Regulation 12/2019). Work on the RKP Desa starts in July, and it is adopted by the end of September at the latest (Article 29 of Permendagri 114/2014). The RKP Desa is the basis for the APB Desa, which is adopted by 31 December of the previous year at the latest (Article 38(2) of Permendagri 20/2018).
2. Do not enter into an agreement with a supplier before the budget is available and sufficient (Article 10(3) of LKPP Regulation 12/2019).
3. Write down your needs clearly: for example, the list of pages, the domain name, and the yearly hosting cost for a website, or the number of access points and the internet subscription cost for Wi-Fi.
4. Collect market prices to draw up the HPS, then choose the method that fits the package value and the Perbup. Also check whether the item is available in the electronic catalogue.
5. Accept the results with a BAST after the TPK has inspected them. For activities carried out entirely by a supplier, the payment request (surat permintaan pembayaran, SPP) is submitted after the goods or services have been received (Article 55(1) of Permendagri 20/2018).
6. Announce the results on the village office notice board (Attachment I to LKPP Regulation 12/2019, Chapter III, letter C).

If the money comes from the Dana Desa (the Village Fund), also check the priorities set for its use. For 2026, these priorities include building digital and technology infrastructure in villages, including village websites, preferably with hosting in Indonesia and a desa.id domain (Regulation of the Minister of Villages and Development of Disadvantaged Regions (Peraturan Menteri Desa dan Pembangunan Daerah Tertinggal) No. 16 of 2025, Article 2(1)(g) and its attachment).

HanzCodes, a small business set up as a single-shareholder limited company (perseroan perorangan) in Morosunggingan Village, Jombang Regency, is registered on e-Katalog, the Indonesian government e-procurement catalogue. Details of our services are on the website development and office network pages.

Mistakes to avoid

• Going ahead with a procurement when the HPS exceeds the budget ceiling for that spending item in the DPA (Dokumen Pelaksanaan Anggaran, the budget implementation document). Such a procurement cannot continue, and the Kasi/Kaur reports it to the village head (Attachment I, Chapter II, letter B, point 5).
• Appointing the Kaur Keuangan (head of financial affairs) to manage procurement, although Article 10(4) of LKPP Regulation 12/2019 prohibits this.
• Buying directly from the same supplier for more than 2 budget years in a row when other capable suppliers exist (Attachment I, Chapter III, letter B, point 2, letter b).
• The village head taking over the TPK's tasks, for example choosing the supplier (Article 11(5)(d) of LKPP Regulation 12/2019). A legal paper from the North Sumatra Representative Office of the Audit Board (JDIH BPK Perwakilan Sumatera Utara) notes that in practice the village head often dominates the TPK's role.

This article is a summary, not legal advice. For specific decisions, refer to the text of the regulations and the Perbup in your area, and consult the competent official or unit, for example the APIP (the regency inspectorate), the UKPBJ (the regency procurement unit), or the village facilitator.