LKPP Plays Key Role in Achieving Transparent Procurement through Electronic Catalogue
The Indonesian government’s Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah (LKPP) continues to strengthen the role of the Electronic Catalogue as a strategic instrument in promoting transparent, accountable, and efficient government procurement of goods and services.
The Electronic Catalogue is an essential part of the national digital procurement transformation, enabling government purchasing processes to be more open and measurable.
Based on LKPP Regulation Number 11 of 2018, the Electronic Catalogue is an information system containing various details related to goods and services, from product lists and technical specifications to Tingkat Komponen Dalam Negeri (TKDN), Produk Dalam Negeri (PDN), SNI-standard products, green industry products, country of origin, prices, and supplier profiles. With this scope, the Electronic Catalogue is not merely a price list but a dynamic digital market ecosystem.
LKPP Deputy for Law and Objection Resolution, Setya Budi Arijanta, affirmed that the prices listed in the Electronic Catalogue represent maximum offer prices (ceilings). In practice, the e-purchasing process ensures negotiations between the purchasing agency and the supplier to achieve the best value.
“These negotiations ensure a crucial stage for budget efficiency, particularly in large-volume procurements,” said Setya in Jakarta on Tuesday (7/4/2026).
Setya emphasised the importance of fully understanding the Electronic Catalogue.
According to him, the Electronic Catalogue is often misunderstood as a procurement method closest to potential deviations, whereas in principle, such risks do not adhere to the system but to the integrity of the procurement actors.
“Deviation risks do not adhere to the system but to the integrity of the procurement actors. The Electronic Catalogue is actually designed to strengthen transparency and accountability,” Setya stated.
He added that negotiations are mandatory if no mini-competition is conducted. Even after a mini-competition, agencies can still carry out further negotiations to secure the best prices according to their needs.
LKPP also, he continued, does not set rigid single prices to maintain a healthy business competition climate. The negotiation feature in the Electronic Catalogue allows suppliers to offer competitive prices. Conversely, procurement without negotiation could lead to unhealthy competition and trigger unreasonable prices.
Setya also warned that negotiation practices outside the system are one of the loopholes for deviations often found in sting operations (OTT). Therefore, all negotiation processes must be conducted transparently within the Electronic Catalogue system.
In this system, he explained, suppliers are responsible for displaying products, including initial prices and fulfilment of offered specifications and quality. LKPP acts as both regulator and platform manager, performing administrative verification and setting the rules of the game.
Meanwhile, Setya clarified, Ministries/Institutions/Regional Governments (K/L/PD) as budget users are responsible for technical clarifications and price negotiations before transactions.
Furthermore, the determination of reference prices in e-purchasing is not done by LKPP but by the Commitment Making Officials (PPK) in each agency based on market information.
“The PPK compiles reference prices according to government procurement mechanisms for goods and services, considering market conditions,” Setya explained.
To ensure price reasonableness, LKPP has also formed a price patrol team tasked with unifying products in the Electronic Catalogue. Products with unreasonable prices can be removed from the system. In the future, this oversight will be strengthened through the use of artificial intelligence (AI) technology to enhance effectiveness and minimise fraud potential.
“Well, we’re currently preparing to use an AI system. Manual patrols are prone to abuse of authority,” Setya said.
He also invited the general public and all parties to monitor to prevent deviations and misuse.
Through the Electronic Catalogue system, Setya added, LKPP ensures that every procurement stage can be digitally traced and accounted for.
“This system not only facilitates transactions but also serves as an important foundation in building transparent, efficient, and integrity-based government procurement governance,” Setya concluded.
The Version 6 Electronic Catalogue represents a significant advancement in LKPP’s efforts to improve electronic procurement system services.