Assessment of Indonesian Public Procurement Legislations

June 27, 2019

Indonesia lost around 1.5 trillion IDR or approximately 106 million USD  to corruption in public procurement in 2017. The amount is equivalent to the salary of 385 thousand employees with minimum wage in Jakarta.  Indonesia Corruption Watch (ICW) stated the financial loss occurred due to lack of transparency and accountability in the procurement planning and management.

The Indonesian government has made various efforts to eliminate irregularities and corruption in public procurement. The government has issued Presidential Decree Number 16 of 2018 regulating public procurement implementation process. The National Public Procurement Agency (NPPA) have also issued several policies related to public procurement to enforce the implementation of said Decree.

Despite the existing regulations, government still needs to issue a specific law that regulates public procurement process comprehensively and can guarantee public participation.

Institute for Development of Freedom of Information (IDFI), together with Indonesia Corruption Watch (ICW), supported by Hivos conducted an assessment to offer insight into areas of potential improvement for Indonesia’s public procurement regulations by using the Transparent Public Procurement Rating (TPPR) methodology.

To read the final results of the quantitative evaluation of Indonesia’s public procurement legislation, please see below.

Kindly note, the opinions expressed in this assessment belong to the Institute for Development of Freedom of Information (IDFI) and its partner organization, and do not reflect the position of Hivos. Therefore, this organization is not responsible for the content of this report.

Related public procurement legislation issued by NPPA:

  • NPPA Regulation Number 11 of 2018 concerning Electronic Catalogs
  • NPPA Regulation Number 9 of 2018 concerning Guidelines for Procurement of Goods/Services through Providers
  • NPPA Regulation Number 2 of 2018 concerning Amendment to NPPA Regulation Number 6 of 2016 concerning Electronic Catalogs and ePurchasing