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PROCUREMENT MODERNIZATION

The Procurement Modernization Project is designed to accelerate the Government’s procurement reform agenda and transform the operation of the public procurement system in Indonesia.

In 2013, Indonesia allocated approximately Rp 672 trillion for government goods and services procurement. The allocation was 40% of the national budget of Rp 1,680 trillion. Unfortunately, 40% of the allocation continue to be leaked every year. Therefore, the procurement system needs to upgrade its efficiency, accountability, and transparency in order to improve  the infrastructure quality, procurement timing and eventually the performance of the Government of Indonesia.

This US$ 73.2 million project aims to cut costs, achieve procurement efficiency, and ensure that the procurement quality serves public interest and is completed within the planned timeframe. The cost savings will lead to better government procurement system, which will eventually improve the welfare of the people and the Indonesian economy.

With the modernization of government procurement system  and professionalization of procurement officers, for the first time, government procurement officers will be part of public service providers, have a promising career path, and professional training. The officers will also learn formal guidelines and procedures of procurement and a system that will guide them in all aspects of their work.