Govt to revise ruling on procurement<\/p>\n
Dadan Wijaksana, The Jakarta Post, Jakarta<\/p>\n
The National Development Planning Agency (Bappenas) is drafting a
\nrevision to a presidential decree on public procurement in the
\nhope of putting an end to flourishing illegal practices in
\nprocurement at government institutions.<\/p>\n
The director for the system and procedure of development
\nfunding at Bappenas, Agus Rahardjo, said on Friday that the new
\ndecree would increase the supervision aspect in the procurement
\nprocess.<\/p>\n
He said the public would be included in the supervision.<\/p>\n
\"The current regulation excludes the public from the process.
\nIt only involves the government and the private sector, as users
\nand providers respectively. That's why KKN practices are so
\nrampant,\" he told reporters, referring to corruption, collusion
\nand nepotism.<\/p>\n
The current legal basis for the procurement process is
\nstipulated in Presidential Decree no. 18\/2000.<\/p>\n
Although a thorough investigation has yet to be conducted by
\nhis office, Agus added, massive leakages did occur at every level
\nof the procurement process.<\/p>\n
\"This is supported by data gathered by various institutions,
\nboth domestic and international.\"<\/p>\n
In a report distributed to the media, the World Bank and the
\nAsian Development Bank stated that corruption in equipment
\nprocurement at government institutions was the most tainted with
\ncorruption.<\/p>\n
The World Bank even suggested that the leakage in the process
\ncould reach up to 50 percent of all funds allocated for
\nprocurement.<\/p>\n
Given the huge amount of money set aside each year for public
\nprocurement: \"You can imagine the damage it would do to the
\ncountry.<\/p>\n
\"This is strategic because this involves development projects.
\nSo, if the projects are abused, especially with that huge figure,
\nit would have a big impact on the country's development
\nsustainability,\" Sarwedi, a consultant for Bappenas in its
\nanticorruption drive, said.<\/p>\n
Due to the strategic nature of procurement, the state budget
\nallocates a huge sum for it.<\/p>\n
Last year for example, Bappenas estimated that total funds
\nallocated for public procurement for the central government alone
\ntotaled Rp 67.3 billion, or 20 percent of the state budget's
\nexpenditures.<\/p>\n
Elsewhere, Agus also disclosed that the new decree would pave
\nthe way also for the establishment of a national public
\nprocurement office, which would be in charge of any procurement-
\nrelated activities.<\/p>\n
\"But what's more important is that the office will be tasked
\nwith preparing a bill on procurement. Unlike the current decree,
\nwhich only stresses procedural matters, the law would also enable
\nus to determine punishment for those violating the procedures,\"
\nAgus said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-revise-ruling-on-procurement-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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