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Transparency and Integrity

We will work toward the full implementation of the principles of the G20 Principles for Promoting Integrity in Public Procurement and the relevant provisions in United Nations Convention Against Corruption. We will work toward the full implementation of the principles of the G20 Principles for Promoting Integrity in Public Procurement and the relevant provisions in United Nations Convention Against Corruption.

Country: Indonesia

Status: ongoing

Themes: Public procurement

Last updated: December 2020

Classification:

Concrete: Other | New: Other | Ambitious: Other

  • 10 Evidence:

    LKPP Issues Circular Letter of Procurement of Goods and Services to Respond Covid-19’s Handling

    Government Goods / Services Procurement Policy Institute

    LPSE electronic government procurement system

    Sistem Informasi Kinerja Penyedia (SIKaP) or Vendor Management System (VMS)

    TI-Indonesia’s monitoring report on National Anti-Corruption Strategy

    MAPS used in LKPP to improve procurement

    President Jokowi Opens National Coordination Meeting for Government Goods/Services Procurement 2019

    LKPP Regulation 17/2018 on Black list Sanction

    Presidential Regulation Number 16 Year 2018 on public procurement

    National Strategy on Corruption Prevention (Presidential Regulation 54/2018

  • 4 Notes:

    The procurement of public goods/services in Indonesia has been decentralized. Each government agency, both at the central and regional levels, has a special unit in charge of regulating procurement, both electronically and manually, as mandated in Presidential Regulation 16/2018 that regulates the Procurement Unit independence, electronic catalogs, electronic purchasing, and other related issues. In response to the current Covid-19 pandemic, LKPP has also issued a Circular for the Procurement of Goods and Services in the Middle of Covid-19. Head of LKPP Circular No. 3/2020 aims to facilitate Ministries, Agencies and Local Governments. In addition, this Circular Letter also follows up on Presidential Instruction No. 4/2020 related to budget reallocation and refocusing of activities.

    Since 2008, the Indonesian government has also created INAPROC, a national electronic procurement system used to gather information on procurement throughout Indonesia. For goods and service providers who wish to participate in the bidding process, they must register themselves as providers on a particular portal (Electronic Procurement Service (LPSE)) provided by respective government agencies. Through the Ministry of Finance in collaboration with the World Bank and the Asian Development Bank, the Government of Indonesia now also has an activity to use the MAPS methodology, which in this case, the Government Goods / Services Procurement Policy Institute or LKPP acts as a focal point.

    In the past five years, the national procurement system has facilitated government procurement spending of IDR 5,335 trillion. LKPP recorded that the transaction value through e-tendering was IDR 1,737.8 trillion, and e-purchasing was IDR 240.8 trillion. Simultaneously, the rest was carried out through a procurement scheme that had not been accommodated through an electronic system. This electronic procurement process has proven the optimization of the government budget of Rp. 177.9 trillion, calculated from the difference between the ceiling and the tender results.

    The electronic procurement process begins with requests from users in each ministry, organization, and local government to each Procurement Service Unit (ULP) to procure certain goods, services, or jobs. ULP will then enter data related to the procurement of goods/services into the Electronic Procurement System (SPSE), which is integrated with the Electronic Procurement Service (LPSE) in each ministry, organization, and local government (province/district/city). If you look at this process, Indonesia is still implementing a complex electronic procurement system.

    Indonesia's public procurement legislation ensures the transparency of information in the public procurement process. However, the transparency clause in the regulation stops at the tender stage only, while information transparency after the tender is not found in the legal framework. Indonesia has an electronic procurement portal called INAPROC, which provides information on procurement announcements in each of the e-procurement portals of various procurement agencies at the central and local levels. There is also LPSE, a separate portal that provides information on individual tenders to the contract signing process. Another important portal is SiRUP, which stores data and information on the annual public procurement plan. There are more than 25 portals or applications created to provide information at every stage of public procurement. All these portals or applications can be found on the LKPP website.

    The above conditions indicate that information related to procurement in Indonesia is not available in one place but is spread across several platforms so that the data is difficult to read by the machine. There is no single database of machine-readable public procurement information available and accessible to the public in Indonesia. Moreover, it isn't easy to analyse public procurement's overall implementation as manual procurement is still very common in Indonesia, while electronic procurement is not yet a standard procedure. However, Indonesia has the potential to make its public procurement system more sophisticated, based on the principles of maximum transparency and efficiency. It's just that, first of all, Indonesia has to make a law on public procurement and ensure that the public can access all information related to public procurement in an easy-to-reach place.

    Updated: October 31, 2020

    Indonesia has updated the rules regarding procurement, which have been stated in Presidential Regulation 16/2018. The principles of procurement transparency, government and vendor accountability, and public participation are included in the new rules. On the other hand, the Procurement Agency has also made a number of derivative regulations, one of which is a matter of migrating the system from manual to online. This is intended to reduce (even exclude) direct interaction between the Government and providers of goods / services. Nationally, it has also been applied and replicated to the local level.

    Peer reviewer: 1

    Updated: April 30, 2020

    National Procurement Portal is active with tenders and planning documents from within the month.

    Peer reviewer: 1

    Updated: October 30, 2019

    No change since 2017.

Indonesia's Commitments
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