Prabowo Slams Ministries and Regional Governments for Fragmented Procurement: 'Illogical'
President Prabowo Subianto has highlighted the practice of many ministries, agencies, and regional governments purchasing the same goods separately or individually. This practice, he said, must be stopped to safeguard Indonesia’s state budget (APBN).
“It is illogical for various bodies, various ministries/agencies, and regional governments to buy the same goods at different prices, even higher than what we could achieve,” Prabowo said during his speech at the DPR Plenary Session for the Submission of the 2027 State Budget Bill at the Nusantara Building, Parliament Complex, Senayan, Central Jakarta, Friday (14/8/2026).
Prabowo also reminded that fiscal discipline should always be applied down to every execution of government budget spending.
“So far, too many ministries, agencies, and regional governments buy the same goods but purchase them separately at different prices. The specifications are the same, but because the process is repeated and perhaps different, the quantities are fragmented,” Prabowo said.
“Fiscal discipline does not stop when the budget is approved. Fiscal discipline must be present down to the execution of every rupiah spent,” he added.
As a result of this practice, he continued, the state’s bargaining power becomes weak. Purchases are made without coordination, as if there were thousands of buyers who do not talk to each other.
“Yet we are all part of the Unitary State of the Republic of Indonesia (NKRI). Whether central government, district/city government, or regional government. We are the government of the Republic of Indonesia,” he exclaimed.
Prabowo cited data from the National Public Procurement Agency (LKPP) showing that consolidation of regional government procurement has produced efficiency of 20.86% in 2025 and 25.43% in 2026.
“If implemented widely and with discipline, consolidation, electronic catalogues, data-based planning, and best procurement practices can produce efficiency of up to 30 percent of procurement spending of Rp1,200 trillion,” he said.
“That means efficiency in one year could reach around Rp360 trillion. Can you imagine, US$20 billion. This is not a small figure. We can do a lot with Rp360 trillion, and this is in our hands,” Prabowo said.
He gave the example of interactive flat panel (IFP) purchases that regional governments have been buying separately, at a price range of Rp150 million per unit.
“After we consolidated the buyers at the Ministry of Primary and Secondary Education, we were able to buy them at Rp26 million per unit. This is a saving of almost 6 times,” Prabowo revealed.
“This is real: Rp150 million bought at Rp26 million, including shipping and installation costs to remote, outermost, and underdeveloped areas. Therefore, I report here that the government will soon consolidate the procurement of similar goods and services. We will elevate LKPP to become a government body, and for that we ask for the support of the esteemed DPR,” he said.
Prabowo emphasised that going forward, the needs of various ministries, agencies, and regional governments will be collected. Specifications will be standardised, volumes will be unified, and government procurement processes will be carried out digitally, as well as becoming more transparent and competitive.
“If the goods are the same, we buy together. If the needs can be planned, we plan together. If the state can obtain better prices and quality by working together, there is no reason for each institution to continue carrying out procurement separately,” he asserted.
“Every rupiah we manage to save is an additional classroom that can be repaired, an additional community health centre that can be renovated, an additional hospital that can be built, and the lives of the people that can be improved,” Prabowo stressed.