LKPP Chief Reveals Strategies to Accelerate Goods and Services Procurement by 2027
Jakarta, CNBC Indonesia - Head of the National Public Procurement Agency (LKPP) Sarah Sadiqa has revealed several measures the agency will take to accelerate the procurement of goods and services for the 2027 budget year. One of the strategies is consolidation.
“This consolidation last year, in the 2025 budget year, thank God, has already delivered efficiency results for the central government of up to 54.88% and efficiency in regional government spending of around 20%-23% of the budget,” Sarah said at a press conference at the Cakti Buddhi Bakti Hall, headquarters of the Directorate General of Taxes at the Ministry of Finance, South Jakarta, Friday (14/8/2026).
According to her, consolidation of goods and services procurement is expected to develop further going forward. So far, Sarah continued, consolidation at the Ministry of Health and the Ministry of Primary and Secondary Education has produced good results.
“So hopefully this can serve as an example for other ministries as well,” she said.
On that occasion, Sarah explained that the aim of consolidation is to boost MSMEs.
“Where local MSMEs, in regional governments, we will continue to encourage local business actors so they can participate in the procurement process. And even those who have been around for quite some time can move up a class so they can become slightly larger providers,” she said.
According to Sarah, as of the first half of this year, government goods and services providers from the MSME sector have reached 46.83%. Meanwhile, for domestic production, average government spending using domestic products has reached 91%.
“And another purpose of consolidation is of course to encourage more research and innovation developed by our colleagues at universities, in higher education and also research institutions,” Sarah said.
“So ultimately this consolidation does not merely provide efficiency but also encourages what the President said this morning, or his directive this morning, which is supply chain independence, national industrial independence. That is one of the goals we want to achieve through consolidation,” she continued.
Sarah also said that consolidation will be carried out based on technology, where procurement digitalisation is now being continuously implemented and fully supported by the government. In this regard, the National Economic Council and the Digitalisation Council are involved.
“So the use of technology in the goods and services procurement process has improved, already using new technologies so hopefully it will deliver even better results,” Sarah said.
In addition to consolidation, according to her, another strategy for executing the 2027 state budget is through a procurement process that precedes the budget year. It is hoped that by the end of this year the government can carry out a procurement process where contracts will be signed in January 2027.
“When the budget can already be executed, we hope we can avoid slowdowns in the procurement process. Hopefully with approaches like this we can also achieve acceleration of the procurement process,” Sarah said.