LKPP: State Spending Efficiency Through Procurement Consolidation Reaches 54.9 Per Cent
Jakarta (ANTARA) - The National Public Procurement Agency (LKPP) has reported that the level of state spending efficiency through procurement consolidation across ministries and agencies reached 54.9 per cent in 2025, marking a significant increase over the last three years.
“Regarding efficiency up until 28 August, we can compare it with 2023, where the consolidation efficiency level for ministries and agencies increased from 30.6 per cent to 54.9 per cent,” stated the Head of LKPP, Sarah Sadiqa, during a hearing with Commission XI of the House of Representatives (DPR RI) in Jakarta on Wednesday.
According to her, the procurement consolidation approach has also been expanded to regional governments. This is reflected in the regional procurement consolidation rate, which rose from 24.1 per cent in 2024 to 33.1 per cent in 2026.
Furthermore, the LKPP noted that the realised efficiency of government spending through procurement consolidation reached Rp14.10 trillion in 2025, from a total spending ceiling of Rp25.69 trillion.
“Therefore, the average efficiency we have obtained up to 2025 is 54.9 per cent, amounting to Rp14.10 trillion,” she said.
Sarah explained that procurement consolidation can increase the government’s bargaining power while transforming the scale of spending into greater benefits.
This achievement is in line with President Prabowo Subianto’s plan to upgrade the LKPP into the Government Procurement Agency (BPP).
She explained that the BPP will eventually be directed to consolidate all goods and services procurement across ministries, agencies, and regional governments. The President believes consolidation is necessary to ensure that identical goods are not procured by various agencies at different prices.
Through this institution, the government will aggregate the procurement needs of ministries, agencies, and regional governments, and subsequently establish centralised specification standards. This step is expected to increase government spending efficiency and optimise the use of the state budget.
Regarding this plan, the LKPP is currently finalising the concept for the formation of the BPP.
Sarah stated that the agency will first utilise existing human resources and available budgets.
“The budget we requested for 2027 does not yet include this BPP. However, we have calculated that even if the BPP is established, we will first utilise all existing resources,” she said.
Consequently, the LKPP budget proposed for 2027 does not yet cover the requirements for forming the BPP, as the institutional concept is still in the maturation stage. The budgetary requirements for the BPP will be calculated further as the formation and implementation progress.
Sarah added that the LKPP is also conducting benchmarking studies with several domestic and international institutions to study the most appropriate institutional model for the BPP.