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Indonesia

Disclose public procurement and open contract information (ID0111)

Overview

At-a-Glance

Action Plan: Indonesia Action Plan 2020-2022

Action Plan Cycle: 2020

Status: Active

Institutions

Lead Institution: 1. Central Information Commission 2. Government Goods and Services Procurement Policy Agency

Support Institution(s): State actors involved 1. Ministry of Home Affairs 2. Provincial Information Commission 3. Ministry of National Development Planning/ National Development Planning Agency

Policy Areas

Anti Corruption and Integrity, E-Government, Open Contracting and Public Procurement, Public Procurement, Regulation, Sustainable Development Goals

IRM Review

IRM Report: Indonesia Action Plan Review 2020-2022

Starred: Pending IRM Review

Early Results: Pending IRM Review

Design i

Verifiable: Yes

Relevant to OGP Values: Pending IRM Review

Potential Impact: Pending IRM Review

Implementation i

Completion: Pending IRM Review

Description

What is the public problem that the commitment will address? Indonesia already issued the Public Information Disclosure Law (Undang-Undang Keterbukaan Informasi Publik - UU KIP) Number 14 of 2008, which gives the public the right to access government-managed information. UU KIP also requires the government to disclose various government’s information. However, after almost ten years of UU KIP implementation, only a few government agencies have the same perspective regarding public information disclosure, including government procurement of goods and services (Pengadaan Barang dan Jasa Pemerintah - PBJP). Many government agencies consider this information, especially contract documents should be excluded or cannot be accessed by the public. The Indonesians also find it challenging to monitor government projects because access to PBJP information is not provided. The lack of community participation in overseeing the PBJP project is one of the factors causing this sector to become highly prone to corruption. Throughout 2019, 64% of corruption cases handled by law enforcer were related to the procurement of goods and services. During COVID-19 pandemic, information disclosure regarding government procurement of goods and services in handling the pandemic is also limited. Even though the public procurement has become very urgent during pandemic, this activity should not neglect the principles of transparency, accountability, and require intense supervision to prevent abuse and corruption. 6 The idea of disclosing the government procurement of goods and services contract is a continuation of the 2018-2020 OGI NAP, particularly in terms of increasing the transparency of the PBJP process which targets all publications of procurement documents in the form of open data. However, until mid-2020, the target in the previous NAP has not been fully achieved. In addition, the Central Information Commission has not finalised the draft of Information Commission Regulation on Public Information Service Standard which regulates the information disclosure of goods and service procurement sector. What is the commitment Encouraging Information Disclosure related to Government Goods and Services Procurement Activities How will the commitment contribute to solving the public problem? Clear regulations will provide legal certainty and eliminate multiple interpretations of information disclosure in the process of goods and services procurement for public institutions. Besides, community monitoring in the procurement of government goods and service, both in general and during an emergency, will be more effective if complete and open procurement information is available, such as job specifications, work volume, and job descriptions. The open contract documents allow communities to access available information and provide input to government and monitor project implementation. Information disclosure can result in the procurement of quality goods and services and promote budget efficiency. Furthermore, the Government and CSOs can use this data to further analyse the effectiveness and potential for fraud in procurement. Why is this commitment relevant to OGP values? This commitment is in line with Open Government values, namely transparency and accountability. The existence of information related to procurement of goods and service activities shows the transparency of government activities. Furthermore, this transparency will encourage government accountability due to public oversight. Why is this commitment relevant This commitment supports the Priority Activity in the 2020-2024 RPJMN, namely Improving the Quality of Public 7 to Indonesian Medium-Term National Development Plan (RPJMN) and SDGs? Communications, especially the Priority Program "Strengthening public information and communication governance at the central and regional levels", namely the Compilation of Public Information Openness Index and Priority Activity namely Institutional Arrangements and Business Processes, especially the Priority Program "Implementation of Integrated Electronic Procurement System ", namely the Development of Centralized Electronic Procurement System. This commitment is also in line with the target of Sustainable Development Goals (SDGs) No. 16, namely "Strengthening an Inclusive and Peaceful Society for Sustainable Development, Providing Access to Justice for All, and Building Effective, Accountable and Inclusive Institutions at All Levels", especially at Target 16.6: "Develop effective, accountable and transparent institutions at all levels", and Target 16.10: "Ensure public access to information and protect fundamental freedoms, per national regulations and international agreements". Additional Information - Milestone Activity with a verifiable deliverable Start Date End Date 1. Issuance of revised Information Commission Regulation on Public Information Service Standards. one part of which regulates the disclosure of information on the January 2021 December 2022 8 procurement of goods and services 2. The issuance of Information Disclosure Index with one of the indicators related to the disclosure of information on the procurement of goods and services January 2021 December 2022 3. The information disclosure on government procurement of goods and services, including procurement during emergencies by optimising the national procurement portal or information system developed by the National Public Procurement Agency January 2021 December 2022

IRM Midterm Status Summary

Commitment 1: Open Contracting in Government Procurement [1]

  • Verifiable: Yes
  • Does it have an open government lens? Yes
  • Potential for results: Substantial
  • For a complete description of the commitment, see Commitment 1 in Indonesia’s 2020-2022 action plan.

    Context and objectives:

    From 2004 to 2019, 70% of Indonesian government corruption cases involved public procurement. [2] However, the public’s ability to monitor corruption is frequently limited by inconsistent access to public procurement information, [3] particularly during states of emergency. [4] In response, Indonesia Corruption Watch led development of this commitment to institute a revised Information Commission Regulation on Public Information Service Standards, continuing an incomplete commitment of the previous action plan. The current commitment also aims to institute online disclosure of procurement information during states of emergency, and to launch an annual Information Disclosure Index. This commitment aligns with the OGP value of transparency by offering public access to previously inaccessible procurement information.

    Potential for results: Substantial

    Public procurement accounts for almost half of Indonesian ministerial, institutional, and local government spending—but as much as $4 billion USD is lost annually through public procurement corruption. Bappenas believes that strengthening the procurement system is essential to the nation’s anticorruption efforts. [5] Likewise, the United Nations Office on Drugs and Crime has encouraged enhanced access to information and meaningful civil society participation. [6]

    To date, limited transparency has been a weakness of the public procurement process in Indonesia. Despite the Access to Information Law, local and national government bodies, like the Ministry of Public Works, frequently fail to comply with requests to fully disclose public procurement information. [7] Government bodies’ lack of clarity on procurement information disclosure policy has also resulted in contradictory verdicts on public information requests between the Central Information Commission and the State Administrative Court (PTUN). [8] During states of emergency, like COVID-19, the government uses offline procurement processes that are not publicly accessible. Although the government typically conducts retrospective evaluations of emergency procurement, these evaluations are also not made publicly available. Obstacles to accessing public procurement information have limited accountability efforts by civil society and journalists. [9]

    Under this commitment, Indonesia Corruption Watch anticipates that the revised Information Commission Regulation on Public Information Service Standards will open access to previously unreported public procurement information on planning for the tendering process, specifications of goods and services, recipients of government contracts, duration of contracts, methods of payment, quantity of money to be disbursed, and amendments to contracts. [10] The Open Contracting Partnership sees this regulation as potentially important leverage for civil society and journalists to secure the release of public procurement information from noncompliant government bodies. Additionally, the intended update to the national procurement portal would publish previously inaccessible emergency procurement information. Particularly during the COVID-19 pandemic, emergency procurement spending represents an increasingly significant component of government spending. [11] In terms of the Information Disclosure Index, members of the Freedom of Information Network Indonesia see the index as duplicative of the Public Institutions Ratings that have been published annually since 2010. Reportedly, these ratings have not impacted government bodies’ transparency, implying that the Information Disclosure Index may have limited potential impact. [12]

    Opportunities, challenges, and recommendations during implementation:

    Prompt passage of the revised Information Commission Regulation on Public Information Service Standards Indonesia is central to this commitment’s potential impact, but government bodies’ compliance with the regulation may be a challenge. Given issues with access to nonemergency procurement information, there are also concerns that the published emergency procurement information could have shortcomings in terms of data quality and open access. [13] As such, the following recommendations could enhance this commitment’s implementation:

  • Activate local governments’ implementation of the revised Information Commission Regulation on Public Information Service Standards through outreach by the Central Information Commission, and passage of complementary policies from the Ministry of Home Affairs and OGP Local.
  • Fully open public access to emergency procurement information without limitations.
  • Use the Open Contracting Data Standard to guide decisions on disclosing data and documents throughout the emergency procurement process. Ensure the level of emergency procurement information disclosure is at least on par with nonemergency information disclosure.
  • Inclusively develop the Information Disclosure Index, strengthening methodology with the full participation of civil society stakeholders and experts.
  • [1] Commitment short titles may have been edited for brevity. For the complete text of commitments, please see Indonesia’s 2020–2022 action plan.
    [2] Hayidrali (Corruption Eradication Commission), “UNODC Webinar on the Procurement Reform Agenda in Indonesia”(UNODC, 8 Dec. 2020), https://www.youtube.com/watch?v=ELfzZBANzx8.
    [3] Michael Canares, “Making participation and use of open contracting data sustainable: Lessons from Bandung, Indonesia” (Open Contracting Partnership, 8 Apr. 2020), https://www.open-contracting.org/2020/04/08/making-participation-and-use-of-open-contracting-data-sustainable-lessons-from-bandung-indonesia/.
    [4] Nanda Sihombing (Open Contracting Partnership), interview by IRM researcher, 28 Jun. 2021.
    [5] Taufik Hanafi (Bappenas), “UNODC Webinar on the Procurement Reform Agenda in Indonesia” (UNODC, 8 Dec. 2020), https://www.youtube.com/watch?v=ELfzZBANzx8.
    [6] Francesco Checchi (UNODC), “UNODC Webinar on the Procurement Reform Agenda in Indonesia”(UNODC, 8 Dec. 2020), https://www.youtube.com/watch?v=ELfzZBANzx8.
    [7] Sihombing, interview. Siti Juliantari Rachman (Indonesia Corruption Watch), interview by IRM researcher, 24 Jun. 2021.
    [8] Ravio Patra, Independent Reporting Mechanism (IRM): Indonesia Design Report 2018–2020 (OGP, 6 Jul. 2020), 53, https://www.opengovpartnership.org/wp-content/uploads/2020/07/Indonesia_Design_Report_2018-2020_EN.pdf.
    [9] Sihombing, interview.
    [10] Rachman, interview.
    [11] Sihombing, interview.
    [12] Dessy Eko Prayitno and Danardono Sirajudin (Freedom of Information Network Indonesia), interview by IRM researcher, 1 Jul. 2021.
    [13] Sihombing, interview. Rachman, interview.

    Commitments

    Open Government Partnership