Government to Accelerate 2027 Procurement by Front-Loading Budget Year

For the execution of the 2027 state budget (APBN), procurement will be carried out through a process that precedes the fiscal year.

Jakarta (ANTARA) - Head of the National Public Procurement Agency (LKPP) Sarah Sadiqa stated that her office is accelerating 2027 procurement by processing tenders ahead of the fiscal year.

“For the execution of the 2027 APBN fiscal year, it will be through a procurement process that precedes the fiscal year,” Sarah said during the Press Conference on the Financial Note and 2027 Draft State Budget (RAPBN) held at the Directorate General of Taxes headquarters in Jakarta on Friday.

With this approach, Sarah hopes that by the end of 2026, the government can complete the procurement process with contracts to be signed in January 2027, when the budget can be executed.

Sarah believes this strategy can prevent slowdowns in the procurement process.

“Hopefully, with approaches like this, we will also achieve acceleration in the procurement process,” Sarah said.

President Prabowo Subianto revealed his plan to strengthen LKPP by transforming it into a Government Procurement Agency to consolidate the procurement of goods and services across all ministries, agencies, central government, and regional governments.

During the Plenary Session opening the first sitting period of the House of Representatives (DPR) for the 2026-2027 session year at the Nusantara Building, Parliament Complex, Jakarta, on Friday, the plan to consolidate government procurement of goods and services was conveyed by the President in his speech presenting the Government’s introduction and remarks on the Draft State Budget (RAPBN) for the 2027 fiscal year, along with the Financial Note and supporting documents.

In the same speech, the President explained his reasons for wanting to consolidate government procurement of goods and services. He noted that procurement by ministries, agencies, regional governments, and other institutions has often been non-standardised, meaning that for the same item, prices can vary.

Going forward, the President emphasised that procurement needs of ministries, agencies, and governments will be consolidated, and specifications will follow centrally established standards.

For the President, every rupiah successfully saved represents additional fiscal space that can be used for the people’s benefit, including improving classrooms in schools, repairing and building community health centres (puskesmas), and additional hospitals.