President Prabowo Subianto has revealed his plan to strengthen the\nNational Public Procurement Agency (LKPP) by turning it into a\nGovernment Procurement Agency to consolidate the procurement of goods\nand services across all ministries and agencies in central and regional\ngovernment.<\/p>\n
He made the announcement in his speech presenting the Government\u2019s\nIntroductory Statement on the Draft State Revenue and Expenditure Budget\n(RAPBN) for the 2027 Fiscal Year, along with the Financial Note and\nsupporting documents.<\/p>\n
\u201cThe Government will immediately consolidate all procurement of\nsimilar goods and services. We will upgrade the institutional status of\nLKPP to become a Government Procurement Agency, and for that we request\nthe support of the esteemed House of Representatives. It makes no sense\nfor various bodies, various ministries and agencies, and various\nregional governments to buy the same goods at different prices. In fact,\nthe prices are higher than what we could achieve,\u201d said President\nPrabowo on Friday, 14 August 2026.<\/p>\n
The Head of State explained his reasoning for wanting to consolidate\ngovernment procurement of goods and services. He said that procurement\nby ministries and agencies, regional governments, and other institutions\nhas often been non-standardised, meaning that the same goods can be\npurchased at different prices.<\/p>\n
\u201cWe must stop the APBN being used to buy the same goods without\ncoordination, as if there were thousands of buyers who do not talk to\neach other. Yet we are all part of the Unitary State of the Republic of\nIndonesia \u2014 whether central government, provincial government, or\ndistrict and city government, we are the Government of the Republic of\nIndonesia,\u201d Prabowo said.<\/p>\n
Going forward, Prabowo stressed that the procurement needs of\nministries, agencies, and governments will be consolidated, and\nspecifications will follow centrally established standards.<\/p>\n
\u201cVolumes will be unified, and the government procurement process will\nbe carried out digitally so that it becomes more transparent,\ncompetitive, and accountable. If the goods are the same, we buy them\ntogether. If the needs can be planned, we plan them together. If the\nstate can obtain better prices and quality by working together, there is\nno reason for us not to do so. There is no reason for each institution\nto continue carrying out procurement separately,\u201d Prabowo said.<\/p>\n
For him, every rupiah saved represents additional fiscal space that\ncan be used for the benefit of the people, including improving\nclassrooms in schools, upgrading and building community health centres,\nand constructing additional hospitals.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/prabowo-proposes-upgrading-lkpp-to-a-government-procurement-agency-to-stop-apbn-waste-1786708393", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }