Buy something with your people money? Yes, it is routine for government official. Maintenance, car, tools, software, hardware, paper, computer, and etc. As government official, I have a right to use people money to buy something regarding to our program.

What are our program? Basically, in every country, the government program is to increase prosperity of the citizens. The strategy of government is to develop economy in every sector.

One of the sector is infrastructure. Everybody knows that infrastructure can triggers economy development. Road, airport, dam, mall, buildings, and etc always attract a new job.

To support developing infrastructure program, we need to buy something. For example : in accordance with our research program, sometimes we need to buy tools to support us such as computer and hardware.

Before we buy tools, we have to count appraisal of those tools. Appraisals are based on level of value.  Approaching the tools can use by value engineering method. Here is the illustration:

We want to buy car. The price is Rp. 500 Million.  Total of maintenance in 5 years will take Rp. 70 M.  Thus, in other ways, we buy a car with Rp. 570 Million. After 5 year, the price of the car is around Rp 200 Million. Thus, actually we will spend Rp. 370M

and then comparing with other ways to get function of the car.

Function Phase:

Function of the car is to deliver official and stuffs regarding to program.

Creativity phase:

1. Buy a car

2. Rent a car

Evaluation phase:

1. Buy a car : need Rp. 370 Million

2. Rent a car : Rp. 5 Million/month, Rp. 60 million/years, Rp. 300 million/5 years

Development phase

1. Buy a car: have to take insurance, need procedure of maintenance

2. Rent a car: no need to take insurance, maintenance is from vendor, the car is “always new”

MONEY: distinction is Rp. 70 Million

DECISION

The decision is depend on the quality of manager. If he focus on effectiveness , he will rent the car.

Every year, more than 500 car is buy for government purpose. Why we don’t just rent a car, make a good contract, and then running the cash flow of every sector in the country..

Cheers! No offence!