session 3 indonesia bima haria wibisana final 221111

8/3/2019 Session 3 Indonesia Bima Haria Wibisana Final 221111

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e-GP: The Rationale for indonesia

A Country Presentation on the policy considerations

in the decision to implemente

-GP



A presentation by:

Bima Haria Wibisana Deputy Chairman for Monitoring, Evaluation and Information Systems Development

National Public Procurement AgencyThe Republic of Indonesia

LKPP National Public Procurement Agency (NPPA)



BACKGROUND

THE MACROENVIRONMENT

• Hardest hit by the 1997 Asian Crisis, the catastrophiceconomic slump precipitated regime change in Indonesiaby 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



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 theurgency to decentralize and build capacity at the

outlying regional governments





BROAD-BASED ACTION

• Fight high cost economy due to corruption and spreadwealth to the outlying regions

› Sets agenda for the establishment of a procurementagency;

› KPK (Anti Corruption Commission) was established in2002.

• The Strategy: Preventive and curative; and the inclusionof procurement in developing e-Gov Systems

› Procurement as part of the e-Gov strategic plan;

› All authorities across the archipelago to beempowered.

INNOVATIVE STRATEGIES





• 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



OBSTACLES

Major Hurdles



CLEARING HURDLES

• Establishment of a dedicated and empowered procurementagency – 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 ofauthorities according to mandate of establishment

• e-GP systems development for nation-wide implementation

• Massive procurement training

• Continued political commitment

CONSOLIDATION EFFORTS





• Keppres (Presidential Decree) 80/2003-initialregulation governing national publicprocurement, amended seven times andeventually became Perpres (PresidentialRegulation) 54/2010

• Since 2005, procurement practioners have tohold National Procurement Certification

• Perpres 54/2010 to govern national publicprocurement

– Substantially complements Keppres 80/2003

– Introduction of independent procurementunits (ULPs) to process procurementactivities of national/regional budgetusers.

REGULATORY FRAMEWORKSPOLICY RESPONSES



• 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 toimplement, regulate and consolidate national e-GP architecture

DRAFT PROCUREMENT LAWe-GP EMPOWERMENT



Implementation Target & Plan

Activities

Infrastructure readiness

Organizational development

Helpdesk and training

3. Roll out and service expantion

4. Service improvement

1. Systems Development

Infrastructure advancement

Organizational growth

Help desk and training

Systems and service certification

2007 2008 2009 2010 2011 2012 2013 2014

2. Piloting e-tendering

e-Proc commencement

5. Implementation of e-purchasing

Piloting e-purchasing

Intensification of e-purchasing

e-purchasing

560-600 LPSEs

Inpres 5

V 3.0; e-purchasing., inaproc, dllV 2.0

CA/PKI

e-audit, dll





Implementation Progress




• The Indonesian experience shows the importance of

gaining the mandate and maintaining the momentum toimplement reforms

• Highlights the interrelationship between politics,

institutions, and policy in the strategic

environment

• Agenda setting to adopt technology nation-wide incosideration of the risks, costs, and potential

rewards.

• Mainstreaming is key.

LESSONS LEARNT

VALUABLE EXPERIENCES





Thank You

session 3 indonesia bima haria wibisana final 221111

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