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Procurement Reform Program
I N D O N E S I A
Presented by :
National Public Procurement Agency / NPPA
Public Procurement Initiative Sub Regional Meeting
Hanoi, 30 Nov 1 Desember 2010
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NATIONAL REFORM on
GOVERNMENT PROCUREMENT
3 Aspects in GP Reform :
Government Procurement Reform started in year 2000 following the
national reform 1998 (democratization, decentralization). GP reform is a part
of bureaucratic and financial reform.
1. Legislation and Regulatory Framework.The current national regulation is Presidential Decree Number 80 Year 2003.
Until now this PD has been amended seven times in order to respond to the
national dynamic.
PD 80/2003 is a national regulation and guidelines to carry out publicprocurement by central/local government institutions and state-owned
enterprises.
2. Strengthening Capacity of Procurement Practitioners.
Since 2005, procurement practitioners have to hold national procurementcertification.
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NATIONAL REFORM on
GOVERNMENT PROCUREMENT continued3. Reform on Institutional Framework.
Presidential Decree Number 106 Year 2007 concerning Establishment of NationalPublic Procurement Agency (NPPA).
The NPPA is aimed particularly to :
Develop strategic, policy and regulation; Conduct monitoring and evaluation, and developing and implementing
electronic procurement, Develop and improve capacity of procurement practitioners;and Provide advice, recommendation and complaint resolution.
Organization Structure ofNPPA : Chairman
Executive Secretary
Deputy Chairman for Legal andComplaint ResolutionDeputy Chairman for HumanResources Dev.Deputy Chairman for M&E andInformation SystemDeputy Chairman for Strategicand Policy Development
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Key Challenges Identified
Internal Government
Regulation :
Harmonization within internal government regulation.
Capacity of procurement professionals;
National business climate.
External
Harmonization with international standard and
best practices.
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E-Procurement Status
E-ProcService in
MoF
E-ProcService inWest JavaProcivnce
E-ProcService in
SlemanDistric
NPPA :1. Public
Awareness;
2. Systemdevelopment;
3. Trainings;4. Technical
Assistance;
5. Supervisions.
Functions of each
of E-Proc Service :
1. To carry out
procurement
process by e-
procurement.
2. To conduct
trainings;
3. To verifyVendors data
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E-Procurement StatusE-GP CONCEPT, PROBLEMS, RESULT AND FUTURE AGENDA
E-GP Concept
E-GP consists of E-Tendering and E-Purchasing(through E-Catalogue).
Scope of e-tendering includes tender
announcement up to contract award.
By 2012, all government institutions (central and
local) must implement e-procurement for partly
or whole packages.
NPPA is developing e-procurement system and
other related supporting system.
Process e-tendering will be performed by each of
E-Procurement Service Unit (LPSE).
Local Government has mandatory to establishLPSE.
Government institutions and Others Public
Institutions welcomed to set the LPSE.
Every Procuring Entities, which are not ready to
establish LSPE, can use the nearest LPSE.
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E-Procurement Status
E-GP CONCEPT, PROBLEMS, RESULT AND FUTURE AGENDA
E-GP Concept Each of LPSE bears functions for administering
the system, conducting registration and
verification data vendors and carrying out
procurement process.
Each of LPSE must signed and implement ServiceLevel Agreement with NPPA.
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E-Procurement StatusE-GP CONCEPT, PROBLEMS, RESULT AND FUTURE AGENDA
Challenges 1. New Paradigm;2. Geographical difficulties;
3. Inadequate infrastructure of ICT.
Result 2008 2010 Beyond 2011
1. E-Procurement Services
(LPSE)
125 LPSE 600 LPSE
2. Savings (IDR) 1.808.408.000.000 n.a
3. Efficiency 12 % n.a
4. Vendors involvement 52.065 4.200.000
Future Agenda 1. Expansion the LPSE to200 units nationwide;
2. Procurement audit;
3. Single User
Registration;
4. Development of
Certification of
1. System audit andbenchmarking to
international standard
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Professionalism & Training Initiatives
Conditions(prior to 2003) Year 2003
Year 2008 Beyond2010
Lack of Capacity Introducing andimplementingCertification Programfor ProcurementProfessionals (who is
managing GovernmentProcurement).
1. ContinuingCertificationProgram;
2. Competency basedtraining;
3. Systematic training;4. Accreditation fortraining providers;
5. EstablishmentpermanentProcurement Unit(by 2014).
6. Expand and PromoteProfessionalCertification Bodies
Absence in career path Developing concept of career path includingsufficient incentives.Lack of sufficient
incentives
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Legal ReformsYear Year 2003 Year 2010 Year 2012 Beyond 2012
Legal
Basis
Issues
1.Publicannouncementfor tender innationalnewspaper.
1. Publicannoucement fortender in websiteprocuring entities,officialannouncementboard and nationalprocurement
portal.
1. Public Private Partnership (PPP);2. State owned enterprises.
3. Harmonization with international
standard and best practices.
PresidentDecree
Number 80Year 2003
PresidentRegulationNumber 54Year 2010
PublicProcurement
Law
Supporting Regulation :
1. Government Regulations.
2. Manuals (Debarment, ProcuringService Unit, Owner Estimate etc.).
3. Standard Bidding Documents.
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Legal Reforms
Year Year 2003 Year 2010 Year 2012 Beyond 2012
Issues
2. Market orientedcompetition byremovingmarketsegmentation.
3. Simplification of
procurementprocedures byencouragingpostqualification fortendering.
2. Implementpartly/wholepackages e-procurement by2012.
3.Developing e-
purchasing (e-catalogue).
4.Obligationestablishment ofProcurementUnit.
5.Simplification ofprocurementprocedures(DirectProcurementUSD. 10,000 forG/C/OS andUSD. 5,000 forConsultancy.)
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Other Initiatives
National Procurement Assessment
2010 - 2011 Beyond 2011
1. Creating national procurement
tools and indicator;
2. Conducting pilot survey to
several ministries andprovinces;
3. National procurement
assessment findings and report
1. Conducting national survey.
2. Procurement Reform (Phase 2)
Re-Structured NPPA
2010 - 2011 Beyond 2011
1. Identifications of key problems;
2. Developing new concept of
NPPA.
1. Presidential Regulation for new
structure and function of NPPA.
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Thank you
Indonesian Delegation :
Sarah Sadiqa ([email protected]);
Ikak G. Patriastomo ([email protected]);Adha Pamekas ([email protected])
Fanni Sufiandi ([email protected]);
Hermawan ([email protected])
National Public Procurement AgencySMESCO Building 7th, 8th, 9th and 17th Floor
Jalan Gatot Subroto Kav. 94. Jakarta 12780. I N D O N E S I APhone (62-21 325 69058)Website : www.lkpp.go.id
mailto:[email protected]:[email protected]:[email protected]:[email protected]