KPK says strengthening LKPP relevant to corruption risks in procurement

The Corruption Eradication Commission (KPK) considers the proposal to upgrade the Public Procurement Policy Institute (LKPP) into a National Procurement Agency to be consistent with the anti-corruption body’s findings on corruption risks in the procurement of goods and services.

“This is certainly also in line with several issues revealed in a number of cases handled by the KPK,” said KPK spokesperson Budi Prasetyo at the KPK’s Merah Putih Building in Jakarta on Monday.

Budi said the procurement of goods and services is one of the sectors most vulnerable to corruption, both at the central and regional government levels.

Therefore, the KPK hopes that if the National Procurement Agency is established, the institution can improve the effectiveness and efficiency of the government’s goods and services procurement process.

“The hope is that with the establishment of a national procurement agency, there will of course be effectiveness and efficiency in the process and mechanism of procuring goods and services,” he said.

Previously, President Prabowo Subianto, in delivering the government’s statement on the 2027 State Budget Draft at the Parliament Complex in Jakarta on Friday (14/8), announced plans to upgrade LKPP into a National Procurement Agency.

Prabowo said procurement consolidation is necessary to strengthen the government’s bargaining power while improving efficiency in spending on goods and services.

According to LKPP data presented by the President, consolidation of regional government procurement produced efficiency of 20.86 percent in 2025 and 25.43 percent in 2026.

Prabowo also highlighted the practice of ministries, agencies and regional governments purchasing similar goods separately at different prices.

“It is unreasonable for various bodies, various ministries/agencies, and various regional governments to buy the same goods at different prices, even at prices higher than what we could achieve,” he said.

The President said the government will push for consolidation of procurement of similar goods and services and upgrade LKPP into a National Procurement Agency.

Prabowo also requested the support of the House of Representatives (DPR RI) for the institutional strengthening plan.