RMIT and BINUS Launch AI-Driven Initiative for Transparent and Sustainable Procurement in Indonesia
RMIT University Australia together with BINUS University officially launched an initiative to strengthen sustainable procurement based on artificial intelligence (AI) in Indonesia on Thursday (13/8/2026).
This initiative is designed to encourage the use of the procurement function as a strategic instrument in the green economic transition and the development of environmentally friendly supply chains.
This step responds to the large value of national procurement of goods and services. Based on data from the National Public Procurement Agency (LKPP), the total General Procurement Plan (RUP) of ministries, institutions, and regional governments in 2025 alone reached Rp1,193.6 trillion.
On the other hand, Indonesia has more than 64 million Micro, Small, and Medium Enterprises (MSMEs) that absorb 97 percent of the workforce. With that scale, purchasing decisions and vendor standards are seen as having great leverage for economic, social, and environmental impacts.
Director of RMIT University Indonesia, Tantia Dian Permata Indah, emphasised that the procurement function can no longer be regarded merely as an internal administrative activity.
“When government procurement spending involves more than a thousand trillion rupiah, the procurement function can no longer be seen as merely a back-office administrative matter. RMIT is helping decision-makers in Indonesia utilise data and AI responsibly so that transaction decisions are more transparent, resilient, and sustainable,” said Tantia in her statement on Thursday (13/8/2026).
Through the partnership between the RMIT Southeast Asia Hub and the BINUS Center of Excellence in Sustainability, this collaboration introduces the Sustainable Procurement Disclosure Index. The index, designed by RMIT supply chain researchers, serves to help corporations and government institutions measure the openness and ecological impact of their procurement practices.
The use of AI is also introduced to assist with vendor evaluation, supply chain risk mitigation, and automation of sustainability reporting (ESG compliance) while still prioritising human accountability controls.
This step also supports the circular economy roadmap of the Ministry of National Development Planning/Bappenas in five priority sectors: food and beverage, textiles, construction, electronics, and retail trade. Consistent implementation of the circular economy is estimated to be able to add Rp593–638 trillion to the national GDP and create 4.4 million green jobs by 2030.
Meanwhile, Chair of the BINUS Center of Excellence in Sustainability, Prof. Yanthi Rumbina Ianova Hutagaol, stated that the combination of international expertise and understanding of domestic regulations is key to strengthening the local vendor ecosystem.
“By combining RMIT’s international research and BINUS’s understanding of regulations and the vendor ecosystem in Indonesia, this collaboration helps organisations move from ESG commitments to real and measurable procurement practices,” said Yanthi.