Govt to promote e-procurement<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The government will start to implement e-procurement for
\nprocuring goods among its agencies by the end of the year in a
\nbid to promote transparency.<\/p>\n
\"I hope we can finalize the preparations and regulation
\nframework in November. Then, such procurement could be carried
\nout,\" said Agus Rahardjo, the National Development Planning
\nAgency (Bappenas)'s director of financing systems and procedures.<\/p>\n
Speaking at a seminar on procurement tenders held by the
\nBusiness Competition Supervisory Commission (KPPU) on Monday,
\nAgus said the government was determined to promote e-procurement
\nas the process would be more transparent, quicker and easier to
\nmonitor by the public and the KPPU.<\/p>\n
\"Learning from other countries' experiences, e-procurement can
\nsignificantly reduce government spending,\" he said, citing South
\nKorea as an example in which the country could save 25 percent of
\nthe government's US$61 billion spending on procurement.<\/p>\n
Indonesia, he added, spent Rp 90 trillion (US$8.28 billion)
\nand $5 billion for goods procurement in the oil and gas sector.<\/p>\n
Agus pointed to the implementation of Presidential Decree No.
\n80\/2003 on guidelines for the government's procurement that has
\nbeen successful.<\/p>\n
\"The implementation of the decree has helped to halve regional
\nadministrations' procurement budgets, about 50 percent lower than
\ntheir estimation,\" he said, pointing to the success of Jakarta,
\nCentral Java and Surabaya in implementing transparent biddings.<\/p>\n
The decree stipulates that government tenders have to be
\nannounced through several national media, allowing sufficient
\ntime for companies to participate in the bidding.<\/p>\n
\"If a tender is participated in by more than 15 companies, it
\nwill be hard to make concessions,\" he said, referring to
\ncollusion between government officials and companies.<\/p>\n
Meanwhile, KPPU member Soy Matua Pardede said the
\nimplementation of Law No. 5\/1999 on antimonopoly and unfair
\nbusiness competition, which also prohibits conspiracy in tenders,
\nwas still far from prefect.<\/p>\n
\"Many government agencies and businesses have not even heard
\nabout the law. They still continue to use collusion in biddings,\"
\nhe told the seminar.<\/p>\n
Pardede said KPPU, which handles more than 150 cases of unfair
\nbusiness competition, often found collusion in tenders but
\nbusinesses widely accepted it as they saw it as the only way to
\nwin a bid from government agencies.<\/p>\n
\"Disseminating information on the antimonopoly law is a must
\nso that we can build better business competition in the country,\"
\nhe said. (006)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-promote-e-procurement-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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