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Indonesia Procurement Reform Program

Apr 09, 2018

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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]
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