More Credible Procurement Procedures for a More Prosperous Society

2013-06-13T06:31:00.001-07:00

Bandung's Administration staff is showing an internet page of e-Proc

Making this nation corruption free should begin at strategic points that have a multiplier effect towards better governance – a credible public procurement system is one. The reform process of the current public procurement system is aimed to ensure an open, simple, controlled, complete with a layered system of crosschecking.

To get an idea of the size of procurement in the public sector, almost 40 percent of Indonesia’s 1,200 trillion Rupiah Public Budget Revenues and Expenditures (BRE), that’s about 480 trillion Rupiah, are spent in the procurement of goods and services. A public procurement system that lacks of credibility is rife with corruption and inefficiency.

We needn’t say much about the condition of goods and services procurement in Indonesia, just watch the news on television or read in printed media, there is almost always a tender fraud in government projects. According to National Public Procurement Agency (NPPA), the inefficiency level of procurement process in government scope is relatively big. The inefficiency comes in many forms, such as price inaccuracy, the loss of purchase benefit, to unnecessary payments.

Exactly at that point is the role of NPPA. This agency was established three years ago, based on Presidential Decree No.106 year 2007, and has played an important role ever since in restoring credibility to the government. Its main function is to create procedures as clear as possible, as simple as possible, and as accountable as possible for the entire procurement process of goods and services. The rules in the procurement of goods and services will be updated regularly according to the needs and development of strategic environment.

One way to eradicate corruption is to introduce e-procurement. This system manages every auction of goods and services through the Internet. This means that the chance of conspiracy between the auction committee and auction participants in meeting face to face can be reduced as minimal as possible. Not even hampered by distance and time. Anyone, anywhere, can participate in an auction. A businessman in Sorong, Papua can join the tender in Tangerang, for instance. The point is, e-Procurement encourages a procedure which is transparent, accountable and having integrity as it is easier to be monitored.

What is being done by NPPA is not as easy as it seems. Only full commitment based on determination can continuously lead the path to fight these strong tides. This hard work can’t be done by NPPA alone, therefore a close cooperation is needed with several institutions such as the Corruption Eradication Committee (KPK), Commission for the Supervision of Business Competition (KPPU), Attorney General, and Indonesian Police Force.

What is done by NPPA may not look heroic. Not many people are paying attention. However, measures taken by institutions like NPPA lay as the foundation for a clean, transparent and trustworthy government, especially since government credibility in public procurement is a strategic point in fighting corruption.

Gigih Pribadi

General Secretariat of NPPA