Monitoring of Government Procurement of Goods and Services Systems (ID0164)

Project Overview

Enhancing public participation and the transparency of Government Procurement of Goods and Services (PBJP) through the modernization of the complaint handling system and the strengthening of accountability features within the procurement platform.

Targeted Issues

Government Goods and Services Procurement (PBJ) is designed to achieve procurement objectives that are efficient, transparent, and responsive to actual needs, while promoting the optimal use of state budget resources and delivering direct benefits to the public. As PBJ budget allocations continue to increase and the complexity of needs and challenges grows, stronger synergy and collaboration among government institutions and with the public are required. The substantial scale of procurement expenditure—averaging approximately IDR 1,200 trillion annually—is highly vulnerable to potential irregularities, including corruption, price inflation, and budget misuse. According to the Indonesia Corruption Watch (ICW) 2023 report, PBJ-related corruption cases accounted for 39 percent of total corruption cases. Therefore, transparency in procurement information is critical to preventing and reducing corruption risks in PBJ. The Government has increasingly used e-purchasing mechanisms through the e-Catalog for procuring goods. However, public access to monitor transactions through the eCatalog and to provide feedback on supplier performance remains limited. Regulatory constraints governing public participation in e-Catalog monitoring further exacerbate this challenge. Transparency of information must also be accompanied by enhanced public literacy to ensure that openness effectively translates into meaningful engagement. This is particularly important given field findings indicating low public use of PBJ information, including among civil society organizations, the general public, small business actors, the media, and budget monitoring communities, especially in regions with limited digital literacy. Difficulties in understanding non-user-friendly procurement information have reduced the effectiveness of advocacy, education, and oversight activities. This issue is national in scope and has persisted for more than five years since the implementation of the digital procurement system. A study by the Corruption Eradication Commission (KPK) in 2021 indicates that corruption vulnerabilities in procurement are highest during the implementation stage, which is also the phase with the least public involvement.

Causes of the Problem

The issues identified are caused by, among others, the following factors: a. Regulatory Aspect Limited regulatory frameworks and technical rules governing the handling of public complaints. The revision of Presidential Regulation No. 46 of 2025 needs to be accompanied by updates to the derivative regulations issued by the National Public Procurement Agency (LKPP). b. Human Resources Aspect Insufficient understanding of procurement regulations among procurement actors, which certain suppliers or contractors exploit to engage in manipulation. Low awareness of integrity from an early stage due to the limited integration of anti-corruption education. c. Information and Technology Aspect The format PBJ data available across various portals are often highly technical, non-standardized, and lacking contextual information, making it difficult for the public to understand the content and its implications. The absence of comprehensive technical guidelines and openly accessible user training modules for the latest versions of the Electronic Catalog and Online Marketplace systems is problematic, as they are not accessible to the broader public. The lack of open, interactive, and user-friendly public monitoring features that enable the general public to trace procurement processes and outcomes digitally. d. Collaboration Aspect The absence of consistent and structured government efforts to enhance public literacy, particularly among civil society organizations, in understanding procurement workflows, terminology, and the potential use of procurement data. Most information disclosure efforts remain oriented toward fulfilling formal obligations rather than maximizing the practical usefulness of information for the public.

Proposed Solutions

Based on the identified issues, several solutions are proposed: 1.Revision of National Public Procurement Agency (LKPP) Regulation No. 6 of 2022 on the PBJP Complaint System to establish a more open, participatory, and cross-agency– integrated complaint management framework, including the preparation of an urgency paper, a change matrix, and technical guidelines for PBJP complaint handling. 2.Optimization of the e-Catalog and ePurchasing systems through the development of a transaction-monitoring dashboard, an early-warning system, and publicly accessible supplier-performance assessment features to support corruption prevention. 3.Provision of public access to selected procurement information, including the publication of Direct Appointment transactions pursuant to Presidential Directives, to enhance transparency in the use of state budget resources. 4.Strengthening public capacity in the use of procurement data and information systems through anti-corruption training in PBJP (MOOC), dissemination and use of the Inaproc Dashboard, and the engagement of civil society organizations and academics in data-based monitoring. All solutions will be implemented collaboratively by the Government and civil society organizations to ensure relevance, public benefit, and sustainable impact.

Relevance to the 5 Strategic Issues of OGI

This solution directly addresses Anti-Corruption and Budget issues by strengthening public oversight of the implementation of Government Goods and Services Procurement (PBJP), while promoting transparency and accountability in the use of state budget resources. Furthermore, this commitment is also relevant to the issue of Inclusive Public Service Delivery, as it enables citizens— particularly vulnerable groups—to provide feedback on the services they receive through PBJP. Revisions to policies and the introduction of responsive digital features will create broader and more meaningful public participation.

Relevance to the Government's Priority Agenda

This solution supports Asta Cita 4 (legal reform and anti-corruption efforts) and Asta Cita 7 (enhancing the quality of inclusive and digital-based public services). This commitment is aligned with the 2025 Government Work Plan (RKP 2025) policy direction, particularly the agenda on digital public service transformation and the strengthening of transparent and accountable governance, through revisions to e-Complaint and e-Catalog regulations that promote public participation, reinforce integrity, improve efficiency, and enhance public trust in state expenditure.

Expected Outcomes

1.Regulatory level: issuance of revised LKPP regulations on the PBJP complaint system and e-Catalog/e-Purchasing that accommodate information transparency and public participation.
2.System level: availability of transaction monitoring dashboards, early warning systems, supplier assessment features, and transparent, integrated complaint-handling systems. 3.Capacity and practice level: increased public literacy, stronger engagement of civil society organizations, and enhanced collaborative practices between government and the public in PBJP oversight.

Commitment Plan
Results Indicators | Output | Timeline

Completion of the draft revision of the LKPP Regulation on the Government Goods and Services Procurement complaint system that accommodates information transparency and public participation. | Input document identifying the needs for revision of LKPP Regulation No. 6 of 2022. | Estimated output end of year 1 (M-12)
1.Draft Revision of LKPP Regulation 6/2022 2.List of Issues (DIM) document and urgency paper for LKPP Regulation No. 6 of 2022. | Estimated output end of year 2 (M-24)

Availability of a transaction monitoring dashboard, an early warning system, and the addition of publicly accessible supplier performance assessment features to optimize the e-Catalog and e-Purchasing systems. | User guide document / training module. | Estimated output end
of year 1 (M-12)
Document on the results of monitoring the implementation of early warning system indicators in ePurchasing, serving as input for future strengthening efforts. | Estimated output end of year 2 (M-24)

Completion of the draft revision of the LKPP Regulation on eCatalog and ePurchasing that accommodates information transparency and public participation. | Technical study document providing inputs for the revision of the LKPP Regulation on e-Catalog and ePurchasing. | Estimated output end of year 1 (M-12)
1.List of Issues (DIM) document and Technical Study on the LKPP Regulation concerning e-Catalog and e-Purchasing. 2.Urgency Paper for the LKPP Regulation on e-Catalog and ePurchasing. | Estimated output end of year 2 (M-12)

Availability of public access to specific procurement information, particularly the publication of Direct Appointment transactions based on Presidential Directives. | Information components and results of monitoring the publication of data/information on Direct Appointment transactions pursuant to Presidential Directives through the recording feature.
| Estimated output end of year 1 (M-12)
Publication of data/information on Direct Appointments pursuant to Presidential Directives through a transactional feature. | Estimated output end of year 2 (M-24

Strengthening Public Capacity in the Use of Procurement Data and Information Systems. | MOOC dan Inaproc Dissemination | Estimated output end of year 1 (M-12)
MOOC and report on the utilization of the Inaproc Dashboard by the public. | Estimated output end of year 2 (M-24)