RMIT Highlights Procurement's Role in Driving Indonesia's Green Economy

RMIT University in Australia is bringing its global expertise in artificial intelligence (AI), sustainable procurement, and regenerative business practices to Indonesia. This initiative comes as more organisations are being called upon to translate sustainability commitments into everyday purchasing decisions and vendor management. The sheer scale of government spending shows that procurement has strategic potential to drive a greener and more inclusive economy.

In 2025, the total General Procurement Plan of ministries, agencies, and regional governments is expected to reach around Rp 1,193.6 trillion, based on aggregated data from the National Public Procurement Agency (LKPP). At this scale, decisions about which goods and services are purchased, which vendors are selected, and which standards are applied can have a broad impact on the economy, society, and the environment.

Indonesia is also home to more than 64 million micro, small, and medium enterprises (MSMEs) that contribute over 60 percent of gross domestic product and absorb nearly 97 percent of the workforce. Changes in procurement practices can therefore have far-reaching effects on businesses, workers, and communities.

In cooperation with BINUS University through the BINUS Center of Excellence in Sustainability, the RMIT Southeast Asia Hub will bring together corporate leaders, procurement professionals, and policymakers to discuss the use of AI, data transparency, and regenerative strategies in improving vendor performance, managing risk, and strengthening supply chain resilience.

One of the key instruments in this initiative is the Sustainable Procurement Disclosure Index. Developed by supply chain researchers from RMIT, the index helps organisations assess the transparency as well as the economic, social, and environmental impacts of their procurement practices.

The initiative will also explore how AI can be used to evaluate vendors, identify potential risks, and support sustainability reporting, while maintaining human oversight and accountability.

Tantia Dian Permata Indah, RMIT Director Indonesia, said procurement needs to be seen as a strategic instrument in driving Indonesia’s sustainability transition.