Overview

Indonesia’s Corruption Eradication Commission (Komisi Pemberantasan Korupsi – “KPK”) has reemphasized that procurements of public goods and services (“Procurements”) remain one of Indonesia’s most corruption-prone sectors. Several recurrent irregularities have been identified in this context, including the manipulation of provider selections, discrepancies between the quality of products and Procurement costs, and Procurement outcomes that fail to deliver any tangible benefits. Cases of nepotism have also surged significantly in recent years, along with occurrences of gratuities, as paid by providers to government officials. Indeed, despite the KPK’s best efforts to promote a digital Procurement system, corruption remains widespread within this vital sector of the economy.[1]