e-GP: The Rationale for indonesia

A Country Presentation on the policy considerations in the decision to implement e-GP

LKPP
National Public Procurement Agency (NPPA)

A presentation by:

Bima Haria Wibisana

Deputy Chairman for Monitoring, Evaluation and Information Systems Development National Public Procurement Agency The Republic of Indonesia

LKPP
National Public Procurement Agency (NPPA)

BACKGROUND
THE MACROENVIRONMENT
Hardest hit by the 1997 Asian Crisis, the catastrophic economic slump precipitated regime change in Indonesia by 1998;

The 1998 Reform Movement: End corruption, collusion, and nepotism and ensure that development is equitable all throughout the archipelago;
Shift of power: from the Executive to the Parliament; Lesser Centralized Control: Decentralization.
Crredible Procurement for National Prosperity 3

LKPP
National Public Procurement Agency (NPPA)

SENSE OF URGENCY
DRIVERS FOR REFORMS
Economic Resources are in the hands of the elite Corrupt Patron-Client relations Disenfranchised Local Governments: Separatist movements In this environment, consciousness for good governance and effective public procurement grew as well as the urgency to decentralize and build capacity at the outlying regional governments

Crredible Procurement for National Prosperity

LKPP
National Public Procurement Agency (NPPA)

INNOVATIVE STRATEGIES
BROAD-BASED ACTION
Fight high cost economy due to corruption and spread wealth to the outlying regions Sets agenda for the establishment of a procurement agency; KPK (Anti Corruption Commission) was established in 2002. The Strategy: Preventive and curative; and the inclusion of procurement in developing e-Gov Systems Procurement as part of the e-Gov strategic plan; All authorities across the archipelago to be empowered.
Crredible Procurement for National Prosperity 5

LKPP
National Public Procurement Agency (NPPA)

OBSTACLES
Major Hurdles
Proliferation of existing public procurements standards ICT Insfrastructure
Geographic spread of the nation (17,000 islands spanning more than 5,000 kilometers) Telecomunication and communication accessbility, internet penetration, telecommunication access mostly in Western Indonesia

Lack of procurement specialist capacity Lack of vendors capacity Lack of public awarness

Crredible Procurement for National Prosperity

LKPP
National Public Procurement Agency (NPPA)

CONSOLIDATION EFFORTS
CLEARING HURDLES
Establishment of a dedicated and empowered procurement agency the NPPA (2007) Electronic transactions Law and Cyber Law (2008) aimed at creating public trust in embracing e-commerce and therefore the utilization of e-procurement systems Interagency coordination and clarifying lines of authorities according to mandate of establishment e-GP systems development for nation-wide implementation Massive procurement training Continued political commitment
Crredible Procurement for National Prosperity 7

REGULATORY FRAMEWORKS
POLICY RESPONSES

Keppres (Presidential Decree) 80/2003-initial regulation governing national public procurement, amended seven times and eventually became Perpres (Presidential Regulation) 54/2010 Since 2005, procurement practioners have to hold National Procurement Certification Perpres 54/2010 to govern national public procurement Substantially complements Keppres 80/2003 Introduction of independent procurement units (ULPs) to process procurement activities of national/regional budget users.

DRAFT PROCUREMENT LAW

e-GP EMPOWERMENT
The will put binding legal powers that compell all stakeholders and procurement entities to follow a harmonized national procurement system and regulatory standard, to which the NPPA is at the forefront. E-gp related provisions within the draft procurement law
A chapter is dedicated to e-GP That all levels of government (central and regional) are responsible for utilizing e-GP as part of public service delivery States that there is an executing agency (NPPA) responsible to implement, regulate and consolidate national e-GP architecture

LKPP
National Public Procurement Agency (NPPA)

Implementation Target & Plan

Activities
1. Systems Development 2. Piloting e-tendering 3. Roll out and service expantion

2007

2008
V 2.0

2009

2010

2011

2012

2013

2014

e-audit, dll Inpres 5

V 3.0; e-purchasing., inaproc, dll

560-600 LPSEs

Organizational development
Infrastructure readiness Helpdesk and training e-Proc commencement 4. Service improvement Infrastructure advancement Help desk and training Organizational growth Systems and service certification 5. Implementation of e-purchasing Piloting e-purchasing Intensification of e-purchasing e-purchasing
CA/PKI

LKPP
National Public Procurement Agency (NPPA)

Implementation Progress

Crredible Procurement for National Prosperity

11

LKPP
National Public Procurement Agency (NPPA)

LESSONS LEARNT
VALUABLE EXPERIENCES
The Indonesian experience shows the importance of gaining the mandate and maintaining the momentum to implement reforms Highlights the interrelationship between politics, institutions, and policy in the strategic environment Agenda setting to adopt technology nation-wide in cosideration of the risks, costs, and potential rewards. Mainstreaming is key.
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Thank You