Overview

As part of their day-to-day activities, government institutions often have to procure goods and services. The public procurement of goods/services (“Procurements”) may either be undertaken by government institutions themselves or via third parties through various legal arrangements. During Indonesia’s reform era, the public has demanded that Procurements be organized in a transparent manner so as to avoid any corrupt practices and, as a result, a system of e-Procurements has been implemented.

In terms of the business potential of Procurements, in 2017 alone the Public Procurement of Goods and Services Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah – “LKPP”) completed 30 tender packages with a total value amounting to ± IDR 31 billion.[1] Furthermore, during the same year, a total of 255 businesses registered as providers of goods and services.[2]