September 28, 2007

Indonesia Commits to e-Procurement with Support from MCC

Bahasa Indonesia

The State Minister of the National Development Planning Agency (BAPPENAS) and governors of four provinces (West Sumatra, East Java, West Java, and Central Kalimantan ) came together today to pledge their participation in the e-government procurement (e-GP) program and their commitment to opening four e-GP centers.

USAID-Indonesia Mission Director Walter North addressed the participants, noting that, “effective electronic government procurement can strengthen the accountability, efficiency, and effectiveness of government by shining daylight into this previously murky world.”

The implementation of e-GP is part of the Government of Indonesia’s efforts to improve efficiency and transparency. The system is also designed to reduce corruption, which the GoI estimates is responsible for US $4 billion (Rp 36 trillion) in losses each year within the existing procurement process. By allowing registered vendors to submit secure bids from any computer linked to the internet, the system helps prevent bids from tampering. In addition, the system will include electronic advertising of upcoming tenders to ensure open access to bids. With increased open competition and reduced corruption, the government expects to procure goods and services at lower costs.

Support for the e-GP program comes from the Millennium Challenge Corporation’s Indonesia Control of Corruption Project, which is implemented by USAID. This is a two-year, $35 million (Rp 315 billion) project in which the Government of Indonesia (GoI) has committed to reduce opportunities for public corruption. Efforts include implementation of administrative reforms and greater judicial transparency, increased enforcement capabilities to fight money laundering, prosecution of cases of public corruption, and reduction of opportunities for corruption through the modernization of public procurement systems.

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