Indonesian Political, Business & Finance News

Central Java Appointed as Pilot Project for Sustainable Procurement

| Source: DETIK Translated from Indonesian | Economy
Central Java Appointed as Pilot Project for Sustainable Procurement
Image: DETIK

The appointment is considered a strategic step to promote more environmentally friendly government procurement of goods and services, while serving as an example for other regions in Indonesia. Central Java Provincial Secretary Sumarno welcomed the designation as an LKPP sustainable procurement pilot project. He said the programme is a momentum to strengthen the role of MSMEs and encourage the use of eco-friendly products in government procurement. “We thank LKPP for appointing Central Java for the sustainable procurement piloting,” Sumarno said in a written statement on Thursday (16/7/2026). Sumarno explained that the concept of sustainable procurement is no longer solely oriented towards the quality of goods and price, but also considers economic and environmental impacts. From an economic perspective, government procurement must provide greater space for local businesses, particularly micro, small, and medium enterprises, to participate as providers of goods and services. “Procurement must involve everyone. How to boost the local economy, how to encourage MSMEs to get involved. We are grateful because in Central Java the majority of economic actors are MSMEs,” he explained. In addition to the economic aspect, sustainable procurement is also directed at supporting environmental preservation through the use of eco-friendly goods and services. “Regarding the procurement of environmentally friendly goods, this is part of our efforts to maintain sustainability, both from an economic and environmental perspective going forward,” he added. Sumarno also advised all goods and services providers in Central Java to uphold the principles of transparency and accountability in every procurement process. Providers who have been awarded work are also asked to maintain the quality of their work according to the specifications set by the government. “If you have been appointed as a provider of goods and services, please carry it out as well as possible. Maintain the quality so that it matches the specified specifications,” he said. Sumarno hopes that providers will begin to adapt to the concept of sustainable procurement, both through the provision of eco-friendly products and business practices that support sustainable development. “Our provider colleagues must also start entering that space with this sustainable procurement. How to get involved in the procurement of goods and services that pay attention to sustainability, both from an economic and environmental perspective,” Sumarno concluded. LKPP Director of Development and International Cooperation Dwi Rahayu Setyowati said Central Java was chosen because it has a large procurement value and a strong commitment to implementing sustainable procurement principles. According to her, Central Java is one of the provinces with a high procurement spending value and holds a strategic position in driving the transformation of a more sustainable government procurement system. “The hope is that the Central Java Provincial Government can become an example for other local governments in implementing sustainable procurement in the process of procuring goods and services,” she said. Dwi added that the Central Java Provincial Government’s quick response when asked to become a pilot project demonstrates a strong commitment to jointly developing a procurement system oriented towards sustainability. She explained that procurement practices in Central Java are currently heading towards green procurement principles, not only oriented towards meeting current needs but also considering environmental impacts in every procurement process. Some of these are carried out by choosing products or equipment with lower emissions, and paying attention to aspects of environmental sustainability in government procurement of goods and services. “These good practices have actually begun to be implemented in the Central Java Provincial Government, so that in the future we do not need to start from scratch again to implement sustainable procurement,” Dwi Rahayu explained. Going forward, what is needed is the strengthening of human resource capacity and increased understanding of all stakeholders. In addition, policy support from the Central Java Provincial Government is also needed so that the implementation of sustainable procurement becomes more optimal. This year, LKPP has designated five agencies as pilot projects for sustainable procurement. Three of them are ministries, namely the Ministry of Industry, the Ministry of Religious Affairs, and the Ministry of Public Works. Meanwhile, the two selected local governments are the Central Java Provincial Government and the West Java Provincial Government.

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