Indonesia’s public procurement is regulated not by a specific law, but by the Presidential Decree, which throughout its existence has changed several times. The Presidential Decree no. 16 of 2018 serves as the primary legal text on public procurement. Additionally, supporting documents and rules spell out each and every procedure in the public procurement system, provide guidance and technical indications on how to properly engage in public procurement.
Public Procurement in Indonesia is carried out in a decentralized manner. Each government institution, both at the central and regional levels, has a special unit tasked with organizing procurement, both electronically and manually. For providers of goods and services who want to take part in the bidding, they need to register as provider in a special portal (Lembaga Pelelangan Secara Elektronik (LPSE)) provided by each government institution.
The services available in the Electronic Procurement System are tenders regulated by the provisions of the LKPP Regulation Number 9 of 2018 concerning E-Tendering Procedures. In addition, LKPP also provides Electronic Catalog facilities (e-Catalog), which are electronic information systems that contain lists, types, technical specifications and prices of certain goods from various services providers.
According to Presidential Decree, in Indonesia there are various methods of public procurement that combine electronic methods and paper-based ones. Both of them apply simultaneously and have an equal weight in the legal framework, although the existing version of the decree and its sub-legal acts encourage e-procurement mechanisms for all types of procurement.
Public Procurement Legislation available at the following – link.
Public Procurement Portal of Indonesia – link.
Assessment of the Legislation: