Transcript Procurement Mainstreaming Process in Indonesia

Procurement Mainstreaming
Process in Indonesia
Figures about Significance of Public
Procurement
 Public procurement in Indonesia is
around 8 % of GDP and more than 20
% of public expenditure.
Major deficiencies in Indonesian
Public Procurement system
 Limited competition and economy in
Public Procurement (segmented
markets, unfair practices)
 Leakages and Corruption (KKN)
 Bureaucracy in public and private
sector, excessive licensing system,
complicated method of payments,
and bureaucracy in certification
system
Some Initiatives of Public Procurement
Reform in Indonesia until 2002
 Since 1980 several adjustments of the
Procurement Regulations attached to the
Presidential Decrees dealing with Budget
Implementation
 Special Presidential Decree for Public
Procurement in 2000 (apart from Decree for
Budget Implementation)
 Country Procurement Assessment Report (CPAR)
in 2000
 Implementation of Technical Assistance in Public
Procurement
 Building a National high ranked interdepartmental
Steering Committee with associated Working
Group in 2001 to further develop Public
Procurement Policy
Priorities and Intermediate steps
(2003 – 2005)
1. Planned National Procurement Law which
provides clarity, uniformity and a basis for
enforcement
2. Revision of existing Presidential
Procurement Decree in crucial areas like
Certification and segmentation, Consistency
with local regulations, Legal basis for
Establishment of a central Procurement
Office, of all to improve competition
Priorities and Intermediate steps (Cont’d)
Establishment of a centralized, high ranked,
independent Procurement Office for
Policy development, oversight, complaints
management, information and training.
It requires additional budgets, hierarchy,
qualified leadership and staff
4. Intermediate Procurement office to start
implementations and prepare a major National
Public Procurement Office
5. Designing approaches for and Organizing
Human resources development
3.
Some Lessons learnt and future
challenges
 Public Procurement reform must be
coordinated with other reform areas
(financial management, anti-corruption,
civil service salary/career system,
decentralization, market reform).
Coordination may be supported by interdepartment working groups
Some Lessons learnt and future
challenges (Cont’d)
 The procurement reform must involve and
mobilize different stakeholders:
 top government officials to decide on
and to back the reform
 project managers/procuring entities to
follow and implement the spirit of the
rules
 business (associations) to agree with
modernization of public market design
 recipients and civil society to claim for
proper public performances
Some Lessons learnt and future
challenges (Cont’d)
 Examples: NGOs and business
associations can be involved in the
Procurement policy working
groups/discussions; procurement
information (policies, opportunities) to
be made available to the public;
evaluation committees may be
supported by independent experts
Some Lessons learnt and future
challenges (Cont’d)
 Enforcement, professionalism and
accountability have to be strengthened
by qualification and (positive/negative)
incentives mechanism
Examples: Procurement training
certificates for Project
Leaders/procurement officers,
advantages for proper project
implementation, sanctions in case of
mismanagement, control activities in the
hierarchy, through auditing bodies, by
complaints system
Some Lessons learnt and future
challenges (Cont’d)
 The Procurement reform process should
be lead-managed by a central (national)
high ranked procurement office for policy
development and oversight
Thank You