Stopping State Budget Loss with Open Contracting

May 8, 2019

Every year the Indonesian government allocates approximately 30 percent of the State Budget for public procurement. However, the lack of transparency in planning and management causes an estimated loss of $15 billion per year.

To stop state budget’s loss and increase the government accountability in public spending, Hivos, together with Article 19, supported by the Dutch Ministry of Foreign Affairs, implements Open Contracting Data program in Indonesia. Open Contracting aims at improving transparency in public procurement, and increasing the public participation in the planning, procurement, and monitoring public contracting processes.

To achieve such goals, we conduct advocacy to improve the public contracting process and the availability of data. We also provide capacity building to the civil society to transform the collected data into actionable information.

 

We support the Indonesia Corruption Watch (ICW) in several program activities, including organizing a campaign regarding public procurement transparency and conducting advocacy to have government commitment implement Open Contracting as a national action plan on the Open Government Partnership agenda. We also support opentender.net platform revitalization to improve public participation to monitor public procurement projects and identify potential corruption as well as national budget loss.

In addition, we also work together with Publish What You Pay (PWYP) Indonesia to promote mining contract and license transparency in West Nusa Tenggara Province, one of biggest copper producing province in Indonesia. It is rooted at the fact that licensing, particularly in mining sector, is the most corruption-prone area, as it does not give much room for public participation. This condition coupled with lack of accessible contract and licensing information has hindered public to monitor mining operation and hold the government accountable.

PWYP Indonesia seek to encourage mining contract and license disclosure and improve public participation, especially women and youth, in monitoring mining operation at the province. To do so, PWYP Indonesia will facilitate capacity building for the community to understand the mining governance in general and the role of mining contract and license document for community monitoring. In another hand, PWYP Indonesia will also assist local government to disclose the mining contract and license.