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Indonesia

  • Our Work in Indonesia

    We work in Indonesia with Bojonegoro Institute, Indonesia Corruption Watch and Transparency International Indonesia focusing on the construction,  health and education and deforestation / land concessions sectors. To make open contracting turn into social and economic value, all stakeholders need to work together in Indonesia.

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  • Country Assessment

    Open contracting can transform public procurement through better data, analysis and engagement with businesses and civil society. It involves (1) disclosure of open data and documents about the planning, procurement, and management of public contracts; and (2) engagement with civic and business users of information, leading to improved accountability and redress by government agencies or contractors through acting on the feedback received.

    Country Facts

    • Uses e-procurement systemYes
    • Implements open contracting data standardNo
    • Active open contracting infomediariesYes

    Country Highlights

    • Indonesia introduced its e-procurement system in 2012
    • The CSO-developed website opentender.net oversees e-procurement
    • Political support for transparency in public spending is strong
    Disclaimer: This report provides an overview of the country specific conditions for open contracting in the summer of 2016. Given this limited scope, the report is not intended for cross-country comparisons, measurement or scoring.
    Click to download the 2-page country summary If interested in full scoping study (60 pages), please contact us.
  • Readiness

    Readiness

    LAW

    Indonesia regularly reviews its public procurement legislation. Most recently, mandatory use of e-procurement for competitive procurement was introduced in 2012. However, public procurement regulation remains fragmented, and the lack of a unified public procurement law makes enforcing legislation difficult in practice. Freedom of information processes are regulated under the FOI law (14/2008).

    POLICY

    Indonesia’s political leaders have shown much interest in making procurement processes more efficient to stimulate economic growth. The country’s public procurement has undergone comprehensive reforms following the adoption of the Presidential Decree (Keppres) No. 80/2003 and other legislation. With a goal to speed up procurement processes and improve accountability, President Joko Widodo has made it mandatory to conduct all procurement through an e-procurement system (Presidential Instruction No. 1/2015 on the Expedition of Government Procurement of Goods/Services).

    INSTITUTIONS

    Following reports of low government spending in the first quarter of 2015, the national public procurement agency LKPP (Lembaga

    Kebijakan Pengadaan Barang/Jasa Pemerintah) devised a public procurement reform, designed to ensure the proper functioning of the country’s procurement structures. Established in 2007, the LKPP is responsible for developing Indonesia’s public procurement policies and overseeing their implementation. However, the agency does not undertake actual procurement processes. This is done by the procurement service units, the ULPs (Unit Layanan Pengadaan). The ULPs are mandated at all levels of government to create procurement plans, schedule and run tender competitions, prepare cost estimates, prepare contracts, and receive and respond to complaints and bidder appeals.

    DISCLOSURE

    Information and documents on all phases of procurement are not all published online, much less accessible as open data. Information is generally available up to the selection stage, while information about awards, performance and termination stages are unavailable.

    PARTICIPATION

    A few organizations work directly with procurement data, particularly watchdogs like Indonesian Procurement Watch (IPW) and Indonesian Corruption Watch (ICW). There are also several networks of CSOs that advocate for budget transparency and open government, for example, Pattiro and Publish What You Pay Indonesia.

    Disclaimer: This report provides an overview of the country specific conditions for open contracting in the summer of 2016. Given this limited scope, the report is not intended for cross-country comparisons, measurement or scoring.
  • Opportunities

    Opportunities

    The Indonesian government can strengthen the implementation of e-procurement systems and gradually transition to a data disclosure mechanism consistent with the Open Contracting Data Standard. This would enable consistent quality assurance, provide access to reusable tools, and make data comparison easier. It should be done in collaboration with key public procurement stakeholders, including civil society organizations and the private sector.

    A good place for the government to start to improve disclosure practices would be to make it mandatory to publish post-award procurement information, and require all public procurement information to be published in open formats. This may help to make contract implementation more efficient.

    The national procurement agency LKPP is well-positioned to lead the development of a detailed open contracting implementation concept, that includes building tools, developing an overall framework and setting a clear roadmap for all stakeholders.

    Government and international donors can help to develop the capacity of civil society organizations, media, researchers and other relevant stakeholders to access, understand, analyze and use contracting data.

    It is important to foster strong collaboration among open data infomediaries, as well as other contracting stakeholders and transparency advocates.

    Disclaimer: This report provides an overview of the country specific conditions for open contracting in the summer of 2016. Given this limited scope, the report is not intended for cross-country comparisons, measurement or scoring.