AI utilisation seen supporting transparent goods and services procurement

RMIT University Australia, together with BINUS University, is helping Indonesia implement transparent and sustainable procurement of goods and services through the use of artificial intelligence (AI).

RMIT Director Indonesia Tantia Dian Permata Indah said procurement needs to be viewed as a strategic instrument in driving Indonesia’s sustainability transition. According to her, when government procurement spending involves more than a thousand trillion rupiah, the procurement function can no longer be seen merely as an administrative matter behind the scenes.

“Sustainability becomes real through everyday decisions: what organisations buy, who they work with, what standards vendors must meet, and how performance is measured,” she said.

To that end, RMIT wants to help institutions in Indonesia utilise data and AI responsibly so that these decisions become more transparent and sustainable.

According to RMIT, the use of AI can help accelerate the evaluation process and analysis of sustainability data. However, the technology still requires human oversight so that assessment results can be accounted for.

The sheer scale of government spending shows that procurement has strategic potential to drive a greener and more inclusive economy. In 2025, the total general procurement plan of ministries, agencies, and regional governments reached approximately Rp1,193.6 trillion, based on aggregated data from the National Public Procurement Agency (LKPP).

At that scale, decisions about which goods and services are purchased, which vendors are selected, and which standards are applied can have a broad impact on the economy, society, and the environment.

Indonesia also has more than 64 million micro, small, and medium enterprises (MSMEs) that contribute more than 60 percent to gross domestic product and absorb nearly 97 percent of the workforce.

One of the instruments being developed is the Sustainable Procurement Disclosure Index (SPDI). The index, developed by RMIT researchers, is used to measure the extent to which companies disclose sustainable procurement practices. The SPDI framework uses indicators that refer to the Global Reporting Initiative (GRI) sustainability reporting standards.

BINUS is one of RMIT’s partners in expanding the application of the index in the Asia-Pacific region. Together with several universities in other countries, the institution is developing SPDI assessments for companies in Indonesia.

In 2026, the collaboration will also produce a dataset comparing human and AI assessments of sustainable procurement practices at 99 companies listed on the Indonesia Stock Exchange. The assessment is carried out using 33 SPDI indicators covering aspects of governance, stakeholder engagement, environment, social, and economy.

Meanwhile, Chair of the BINUS Center of Excellence in Sustainability Yanthi Rumbina Ianova Hutagaol said the collaboration is important so that global sustainability frameworks can be applied in accordance with Indonesian conditions.

“By combining RMIT’s international research and expertise with BINUS’s understanding of regulations, the business world, and the vendor ecosystem in Indonesia, this collaboration can help organisations move from ESG commitments towards real and measurable procurement practices,” she said.