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Indonesia

Government Procurement Transparency (ID0103)

Overview

At-a-Glance

Action Plan: Indonesia Action Plan 2018-2020

Action Plan Cycle: 2018

Status: Active

Institutions

Lead Institution: 1. National Public Procurement Agency (NPPA) 2. Central Information Commission

Support Institution(s): Corruption Eradication Commission, 1. Indonesia Corruption Watch (ICW); 2. Transparency International Indonesia (TII)

Policy Areas

Anti-Corruption, Capacity Building, E-Government, Legislation & Regulation, Legislative, Public Participation, Public Procurement

IRM Review

IRM Report: Indonesia Design Report 2018-2020

Starred: Pending IRM Review

Early Results: Pending IRM Review

Design i

Verifiable: Yes

Relevant to OGP Values: Access to Information , Civic Participation , Technology

Potential Impact:

Implementation i

Completion: Pending IRM Review

Description

January 2019 - December 2020
Commitment Description
Lead implementing
agency/actor
1. National Public Procurement Agency (NPPA)
2. Central Information Commission
Public procurement process in Indonesia takes 30% of
the total state budget. Such goods and services
provided by the government through the procurement
process have been very convenient in establishing
infrastructures and facilities to support people, such as
schools, hospitals, etc. However, according to NPPA’s
record, the country is still in a deficit at $15 billion per
year or almost 200 trillion rupiahs due to a poor
procurement process.
One of the solutions to prevent and overcome
problems encountered within the procurement process
is to enhance transparency and accountability of the
procurement documents.
Even though currently the government is publishing
the procurement information offline and online, but,
based on Scoping Study Open Contracting in
Indonesia (2016), six stages of procurement
documents starting from planning to final stage are not
yet to be published. All this time, information available
on the website is only limited to the information about
the selection process, the rest of the process is not yet
available. Therefore, the open contracting initiative is
expected to assist public procurement transparency
followed with standardized data and content.
What is the public problem that
the commitment will address?
The government recently issued a Presidential
Regulation Number 16/2018 on Public Procurement
which focuses on accelerating the easiness of the
procurement process. The regulation mandate
procurement system integration which consists of
planning program process, budgeting, up to monitoring
and evaluation. The system is called the Electronic
Procurement System (EPS).
However, based on the regulation, there was no
procurement document available to be published.
Therefore, Open Government National Action Plan
2019-2020 will set a target for NPPA and KIP to release
policy (regulation and decree) related to document list
which can be accessed by the public.
Furthermore, to strengthen the monitoring system
mandated by the regulation, NPPA should add
monitoring component to the procurement of goods
and services by involving civil society How will the commitment
contribute to solve the public
problem?
This commitment is relevant to the OGP values, such
as information disclosure, public participation,
transparency, and technology innovation. By using the
integrated SPSE, procurement process of government
goods and services will be more accountable. This
commitment also encourages transparency and public
participation.
Why is this commitment relevant
to OGP values?
● Open contracting becomes one of the indicators to
determine the achievement of SDGs goals,
particularly related to Agenda 10.
● Open contracting commitment is an initiative that
initially brought by Bojonegoro Regency and local
civil society organizations through the OGP
Subnational Pilot Program. Moreover, open
contracting has been supported by the Steering
Committee of OGP through OGP Regional Summit
2017 and OGP Global Summit 2016.
● Some of the civil society organizations, e.g.
Bojonegoro Institute (BI), Indonesia Corruption
Watch (ICW), Transparency International
Indonesia (TII) have been supporting this
commitment by coordinating with local government
since last year. Center of Information and Regional
Studies (PATTIRO) from Semarang and The
Alliance of Independent Journalists (AJI) will be
supporting this commitment as well.
Additional information
Milestone Activity with a verifiable
deliverable
Start Date: End Date:
1. The availability Head of
Institution Decree on information
disclosure about government
procurement which can be
accessed by the public.
January 2019 September 2019
National Public Procurement Agency (NPPA)
2. The utilization of Electronic
Procurement System in all
government procurement (Planning,
Procurement Preparation, Election
Preparation, Election, Contract
Implementation, Commencement) in
government institutions.
January 2019 December 2020 3. Workshop on Public
Procurement Monitoring for civil
society organizations in the
national or regional level.
January 2019 December 2020
1.Public consultation to acquire
people’s response to public
information disclosure referring to
public information disclosure
January 2020 September 2020
Central Information Commission
2. The availability of Information
Commission Regulations on
information disclosure about
government procurement referring
to the regulation issued by NPPA.
September 2020 December 2020
Contact information
Other Actors
Involved
State actors
involved
Corruption Eradication Commission
CSOs, private
sector, multilaterals,
working groups
1. Indonesia Corruption Watch (ICW);
2. Transparency International Indonesia (TII)

IRM Midterm Status Summary

12. The Enhancement of Transparency and Participation on Government Procurement

Language of the commitment as it appears in the action plan:

The government recently issued a Presidential Regulation Number 16/2018 on Public Procurement which focuses on accelerating the easiness of the procurement process. The regulation mandate procurement system integration which consists of planning program process, budgeting, up to monitoring and evaluation. The system is called the Electronic Procurement System (EPS).

However, based on the regulation, there was no procurement document available to be published. Therefore, Open Government National Action Plan 2019–2020 will set a target for NPPA and KIP to release policy (regulation and decree) related to document list which can be accessed by the public.

Furthermore, to strengthen the monitoring system mandated by the regulation, NPPA should add monitoring component to the procurement of goods and services by involving civil society.

Milestones:

National Public Procurement Agency (NPPA)

  1. The availability of Head of Institution Decree on information disclosure about government procurement which can be accessed by the public.
  2. The utilization of Electronic Procurement System in all government procurement (Planning, Procurement Preparation, Election Preparation, Election, Contract Implementation, Commencement) in government institutions.
  3. Workshop on Public Procurement Monitoring for civil society organizations in the national or regional level.

Central Information Commission

  1. Public consultation to acquire people’s response to public information disclosure referring to public information disclosure.
  2. The availability of Information Commission Regulations on information disclosure about government procurement referring to the regulation issued by NPPA.

Start Date: January 2019                                                               End Date: December 2020

Context and Objectives

According to the Minister of Finance, Sri Mulyani, procurement of goods and services accounted for around 524 trillion rupiah (36.8 billion USD) or 36% of Indonesia’s 2018 national budget. [126] The National Public Procurement Agency (LKPP) reported that the government suffers an average 15 billion USD [127] deficit every year due to a weak procurement process, including a lack of transparency.

In 2016, Web Foundation’s Open Data Lab Jakarta released a report that looked into Indonesia’s procurement transparency with support from Hivos. Findings in the report suggested that the procurement process lacked transparency across all six stages: planning, announcement, selection, awarding, performance, and termination. [128] While the government has taken steps to increase transparency in the procurement process, the report found that most procurement documents are not available online, [129] particularly in the critical stages of performance and termination.

The government has not been oblivious to this situation. Most recently, the government issued a new Presidential Regulation on Government Procurement of Goods and Services [130] in March 2018. This new regulation mandates the integration of the complex layers of procurement system that is available on the government’s electronic procurement system (SPSE) lpse.lkpp.go.id. The system was established in 2008 and has been adopted by public institutions across Indonesia, though the extent of its utilization varies throughout the stages of procurement process: planning, preparation, open call for proposals, proposal selection, contracting, and implementation.

According to Arif Adi Kuswardono, one of the Information Commissioners at the Central Information Commission (KIP), the problem is that the LKPP does not have a standardized information disclosure policy. [131] This leads to inconsistent practices and confusion among citizens as to what procurement information is publicly available. To address this, the KIP believes that the LKPP should refer to the KIP’s Public Information Service Standards Regulation rather than creating a new regulation. [132] However, the LKPP would also need to develop an updated Public Information List (DIP) on the procurement process. This would clarify which procurement information is classified as open by default and which is privileged and therefore requires a formal public information request to be disclosed.

In doing so, the KIP will conduct public consultations to identify the areas where public access to procurement information is most needed. Public input from these consultations will help the KIP and also the LKPP in classifying procurement information as either open by default or privileged. This would in turn provide the KIP with a clear legal basis in adjudicating public information requests. According to one of the KIP Commissioners, [133] unclear procurement information disclosure policy has resulted in contradictory public information request verdicts between the KIP and the state administrative court (PTUN).

Meanwhile, the KPK also pointed out that while transparency is an important aspect of the procurement process, the government must also focus on safeguarding the integrity of the procurement system from human and technical errors. [134] In a 2015 report highlighting corruption in government procurement, [135] the KPK expressed concerns over the electronic procurement portal’s frequent system maintenance which often limited potential bidders from participating in a fair bidding process. The report showed that 138 out of the 454 corruption cases prosecuted by the KPK between 2004 and 2015 were related to procurement fraud, second only to bribery cases. [136] This figure indicated that in spite of the government’s efforts to improve the integrity of the procurement process, it remains one of the most vulnerable areas to corruption in government practice. Given these findings, it is also important to note that despite its crucial role in tackling corruption in public procurement, the KPK was not involved in any capacity during the development of this commitment. [137]

Collaboration between the KIP and the LKPP in this commitment carries moderate potential impact to improve transparency in government procurement. By opening up public access to procurement information, the government is adding an extra layer of scrutiny to monitor the procurement process. However, as the KPK pointed out, improving transparency alone will not reform government procurement without improvements in safeguarding the integrity of the electronic procurement system.

Next Steps

Considering the magnitude of the problem, commitments improving the procurement process should be prioritized for inclusion in future action plans. Within the scope of this commitment, the government should focus on the following:

  • Involve the KPK and relevant CSOs such as Transparency International (TI) Indonesia and the Indonesia Corruption Watch (ICW) in developing the new procurement information disclosure regulations;
  • Conduct awareness-raising initiatives to educate citizens of their important role in monitoring the government procurement process; and
  • Establish a clear mechanism for intragovernmental coordination between the LKPP as the procurement authority, the KIP as the information disclosure authority, and the KPK as the relevant law enforcement authority in combating fraudulent procurement practices.

[126] Hendra Kusuma, "Sri Mulyani Cerita Pentingnya Pengadaan Barang dan Jasa bagi APBN" (Detik Finance, 2018), https://finance.detik.com/berita-ekonomi-bisnis/d-4087734/sri-mulyani-cerita-pentingnya-pengadaan-barang-dan-jasa-bagi-apbn.

[127] Open Government Indonesia National Secretariat, “Indonesia OGP National Action Plan 2018–2020” (2018), 41, https://www.opengovpartnership.org/wp-content/uploads/2019/01/Indonesia_Action-Plan_2018-2020.pdf.

[128] Web Foundation's Open Data Lab Jakarta, “How Can Indonesia Achieve a More Transparent Procurement Regime? Open Contracting and the Future of Indonesia's Procurement System" (2016), 5–6, http://labs.webfoundation.org/wp-content/uploads/2016/04/OCDS-Indonesia-Research-Note.pdf.

[129] Ibid., 7.

[130] Government of Indonesia, “Peraturan Presiden No. 16/2018 tentang Pengadaan Barang/Jasa Pemerintah” (2018), https://jdih.lkpp.go.id/regulation/1001/peraturan-presiden-nomor-16-tahun-2018.

[131] Arif Adi Kuswardono (Central Information Commission), interview by IRM researcher, 11 Mar. 2019.

[132] Aditya Nuriya (Central Information Commission), interview by IRM researcher, 11 Mar. 2019.

[133] Kuswardono, interview.

[134] Putri Rahayu (Corruption Eradication Commission), interview by IRM researcher, 11 Mar. 2019.

[135] Corruption Eradication Commission, “Kajian Pencegahan Korupsi pada Pengadaan Barang dan Jasa Pemerintah” (2015), https://acch.kpk.go.id/id/berkas/litbang/kajian-pencegahan-korupsi-pada-pengadaan-barang-dan-jasa-pemerintah.

[136] Ibid., 8–9.

[137] Rahayu, interview.


Commitments

  1. Platform for Improved Legislative Data and Information

    ID0106, 2018, Capacity Building

  2. Make Legislative Information More Accessible

    ID0107, 2018, E-Government

  3. Improving Documentation and Access to Information on Parliamentary Sessions

    ID0108, 2018, E-Government

  4. Formulation of the Open Parliament Indonesia Roadmap

    ID0109, 2018, Capacity Building

  5. Establishing the Open Parliament Indonesia Institution

    ID0110, 2018, Legislative

  6. Extractives Data Management

    ID0092, 2018, Anti-Corruption

  7. Transparency and Participation in Health Data

    ID0093, 2018, E-Government

  8. Public Service Data

    ID0094, 2018, E-Government

  9. Participatory Education Budget

    ID0095, 2018, Capacity Building

  10. Participatory Village Government Planning

    ID0096, 2018, Capacity Building

  11. Civic Participation in E-Legislation Portal

    ID0097, 2018, E-Government

  12. Election Data Openness

    ID0098, 2018, Access to Information

  13. Health Service Data

    ID0099, 2018, E-Government

  14. Public Consultation Reform

    ID0100, 2018, Capacity Building

  15. LAPOR!-SP4N Quality Improvements

    ID0101, 2018, Capacity Building

  16. Complaint System for Environment

    ID0102, 2018, Anti-Corruption

  17. Government Procurement Transparency

    ID0103, 2018, Anti-Corruption

  18. Strenthening Open Data

    ID0104, 2018, Access to Information

  19. Improvements to Legal Aid

    ID0105, 2018, Access to Justice

  20. Open Government Strategic Plan

    ID0047, 2016,

  21. Public Agency Consultation Guidlines

    ID0048, 2016, Capacity Building

  22. Good Governance Manual and Public Consultations to Reach SDGs

    ID0049, 2016, Capacity Building

  23. Geospatial Information Management

    ID0050, 2016, Capacity Building

  24. Monitoring Public Services by Ombudsman

    ID0051, 2016, E-Government

  25. Ombudsman Overseeing Public Services

    ID0052, 2016, Public Service Delivery

  26. Public Services at Ministry of Education and Culture

    ID0053, 2016, Capacity Building

  27. Public Services at Ministry of Religious Affairs

    ID0054, 2016, Public Service Delivery

  28. Development of LAPOR into SP4N

    ID0055, 2016, Capacity Building

  29. Public Complaints Administration Integration into LAPOR!-SP4N

    ID0056, 2016, Capacity Building

  30. LAPOR!- SP4N as Citizen Aspiration and Complaints Platform

    ID0057, 2016, Capacity Building

  31. 1 Million Complaints Via LAPOR! by 2016

    ID0058, 2016, E-Government

  32. LAPOR! Public Accountability

    ID0059, 2016, Public Participation

  33. Interconnectivity of SOEs to LAPOR!

    ID0060, 2016, Capacity Building

  34. Environment and Forrest Sector Public Complaints

    ID0061, 2016, E-Government

  35. Strengthened Village Governance

    ID0062, 2016, Capacity Building

  36. Public Information Disclosure Through Ministry of Health

    ID0063, 2016, E-Government

  37. Public Information Disclosure Through Ministry of Education and Culture

    ID0064, 2016, E-Government

  38. Public Information Disclosure Through Ministry of Research Technology and Higher Education

    ID0065, 2016, E-Government

  39. Public Information Disclosure at Higher Education Institutions

    ID0066, 2016, E-Government

  40. Budget Transparency Information System

    ID0067, 2016, E-Government

  41. Inter Agency Data Governance

    ID0068, 2016, Capacity Building

  42. Open Data Implementation

    ID0069, 2016, Capacity Building

  43. Public Complaints Channels

    ID0070, 2016, Capacity Building

  44. Information Disclosure at Village Levels

    ID0071, 2016, E-Government

  45. Increase in Number of Open Data

    ID0072, 2016, Access to Information

  46. Improved Public Services

    ID0073, 2016, Capacity Building

  47. Transparency in the Regional Government Budget System

    ID0074, 2016, E-Government

  48. Procurement Disclosure in Bandung

    ID0075, 2016, Anti-Corruption

  49. Enhancing the LAPOR! Application

    ID0076, 2016, E-Government

  50. Public Complaints Services in the City of Bandung

    ID0077, 2016, Public Participation

  51. Information Disclosure on Citizens’ Proposals to DPRD

    ID0078, 2016, E-Government

  52. Greater Public Participation in Disseminating Development Information

    ID0079, 2016, Education

  53. "One Data Indonesia” in Semarang.

    ID0080, 2016, Access to Information

  54. One Data Basis for Semarang

    ID0081, 2016, Access to Information

  55. Enhanced Public Information Disclosure

    ID0082, 2016, E-Government

  56. Public Monitoring of Services in Semarang

    ID0083, 2016, Capacity Building

  57. Access to Information on DPRD

    ID0084, 2016, Capacity Building

  58. Data Governance of DPRD

    ID0085, 2016, Fiscal Openness

  59. Infrastructure for Fublic Information Disclosure

    ID0086, 2016, Capacity Building

  60. Public Information Communications Strategy

    ID0087, 2016, Subnational

  61. Information Through Jakarta.Go.Id Portal

    ID0088, 2016, Capacity Building

  62. Public Services Complaint Channel

    ID0089, 2016, Public Participation

  63. Strengthening of Data Governance

    ID0090, 2016, Access to Information

  64. Public Participation in Development Planning

    ID0091, 2016, E-Government

  65. Strengthening Transparency Infrastructure of Public Bodies

    ID0028, 2014, Public Service Delivery

  66. Strengthening Infrastructure of Central and Local Information Commission

    ID0029, 2014, Capacity Building

  67. Strengthening Institutional and Human Resources Infrastructure for Public Services

    ID0030, 2014, Public Participation

  68. Improve Quality of Openness in Health Services

    ID0031, 2014, Health

  69. Improve Quality of Openness in Education Services

    ID0032, 2014, E-Government

  70. Accelerate Open and Good Governance Practices in Law Enforcement

    ID0033, 2014, E-Government

  71. Accelerate Open and Good Governance Practices in Goods and Services Procurement

    ID0034, 2014, Anti-Corruption

  72. Accelerate Open and Good Governance Practices in Business Development and Investment Sector

    ID0035, 2014, Capacity Building

  73. Accelerate Open and Good Governance Practices in Land Affairs

    ID0036, 2014, Land & Spatial Planning

  74. Accelerate Open and Good Governance Practices in Management of Migrant Workers

    ID0037, 2014, Citizenship & Immigration

  75. Accelerate Open and Good Governance Practices in Hajj Management

    ID0038, 2014, Public Service Delivery

  76. Accelerate Open and Good Governance Practices in Natural Resources Management

    ID0039, 2014, Anti-Corruption

  77. Improve Public Participation in Development Planning

    ID0040, 2014, E-Government

  78. Improve Public Participation in House of Representative and Regional Representative Council

    ID0041, 2014, Legislative

  79. Improve Public Participation in Environmental Preservation

    ID0042, 2014, Environment and Climate

  80. Community Empowerment to Handle Poor Society and People with Disabilities and Special Needs

    ID0043, 2014, Health

  81. Community Empowerment to Support Environmental Sustainability

    ID0044, 2014, Environment and Climate

  82. Community Empowerment to Strengthen Agriculture Sector

    ID0045, 2014, Capacity Building

  83. Community Empowerment to Develop Creative Sector

    ID0046, 2014, E-Government

  84. Motor Vehicle Services

    ID0013, 2013, Infrastructure & Transport

  85. Public School Funding

    ID0014, 2013, Anti-Corruption

  86. Hajj Services: Ministry of Religious Affairs

    ID0015, 2013, Anti-Corruption

  87. Marriage Services: Office of Religious Affairs

    ID0016, 2013, Public Service Delivery

  88. Toll Roads

    ID0017, 2013, Public Service Delivery

  89. Land Affairs Transparency

    ID0018, 2013, E-Government

  90. Forest Management

    ID0019, 2013, Anti-Corruption

  91. Transparency and Accountability in Natural Resources Management Activity

    ID0020, 2013, Access to Information

  92. Oil, Gas, and Mining Revenue Transparency

    ID0021, 2013, Anti-Corruption

  93. Appointments of Information and Documentation Management Officials (PPID) in National Agencies and Enactments of their Standard Operating Procedure

    ID0022, 2013, Access to Information

  94. Starred commitment Formulation of a Working Plan and a Well-Operated Tracking System for Business/Investment Licensing Servies in 10 Provinces and 10 Regencies/Cities

    ID0023, 2013, E-Government

  95. Encouraging the Acceleration of the Operational Formation for Information Services in Local Government through the Formation of Local Government's PPID and its Tools

    ID0024, 2013, Access to Information

  96. Encouraging Comprehensive Implementation of Open Government in Pilot Province/Regency/City

    ID0025, 2013, Subnational

  97. Integration of Performance-Based Budgeting

    ID0026, 2013, Fiscal Openness

  98. Ensuring the Publication of Budget Plan (RKA/DIPA)

    ID0027, 2013, Fiscal Openness

  99. Poverty Reduction

    ID0001, 2011, E-Government

  100. Education Subsidies

    ID0002, 2011, Education

  101. Health Subsidies

    ID0003, 2011, Health

  102. Police

    ID0004, 2011, Dispute Resolution & Legal Assistance

  103. High Corruption Risk

    ID0005, 2011, E-Government

  104. Civil Service Recruitment

    ID0006, 2011, Capacity Building

  105. Land Administration

    ID0007, 2011, E-Government

  106. National Budget Information

    ID0008, 2011, Anti-Corruption

  107. District Budget Information

    ID0009, 2011, Fiscal Openness

  108. e-Procurement

    ID0010, 2011, Anti-Corruption

  109. One-Map Portal

    ID0011, 2011, E-Government

  110. Environmental Openness

    ID0012, 2011, Anti-Corruption

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