Procurement Reform and Professionalization of Public Procurement in Indonesia DR. AGUS PRABOWO Chairman of Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah (National Public Procurement Agency) Republic of Indonesia November
1,919,440 km 2 Land Area 96.079,15 km 2 Sea Area 17.508 Islands 34 Provinces 514 Regencies 70 Central Govt. Dept. 259.1 M Population 1.340 Ethnics 737 Languages
THE JOURNEY OF PROCUREMENT REFORM IN INDONESIA 2010 Issuance of Presidential Regulation/ 2007 Perpres 54/2010 on Government Procurement of Goods/Services 2003/2004 Establishment of LKPP through the Presidential Regulation/ Perpres 106/ 2007 2001 State financial management reform by issuance of laws providing the basis of procurement reform 1998 Indonesia Country Procurement Assesment by GOI, WB and ADB recommending the professionalization of the procurement workforce and establishment of a national public procurement office “Reform asi ” movement pushing for reform in all aspects of governance
National Public Procurement Agency Organization : “Becoming a credible reformer to create • Central Government Agency • procurement Values for Money in order to Report to President improve the welfare of society and the Competences : competitiveness of nations” • Regulate National Public Procurement (Central and Sub National) • Development Procurement IT • Strengthening Procurement Professionals Strategic Objectives of LKPP • Procurement Advocacy To create the To create To create Procurement Officials : procurement that Reformation of that Improve the • 6 high rank official, 16 mid-rank officials produce Value for Independency of LKPP and National Economy Beureaucracy Money 150 mid to junior procurement staffs, 150 administrative staffs. • Experts.
PROCUREMENT REFORM (2008 – ONWARD) • Presidential Regulation Number 54/2010 Legislative & Regulatory Change, Add and Improve current procedure Framework and policy to support a more effective, 1 efficient and accountable procurement • Open access to Gov Procurement Information • Whistle blowing system establishment • Fair treatment to all bidders 3 4 Integrity & Procurement Operation and Public Transparancy Market Practice Procurement (Anti Corruption) System • Development of National e-Catalog (from Tendering to Purchasing) • Development of Local e-Catalog • Certified Basic Level – 250k persons 2 • Improve e-Tendering Process • Professional Procurement Officers in Functional • Develop Proc.Management Position – 1600 persons (300 supported by MCAI) Information System • Certified Competency/ Expert Level – 300 persons • Permanent & Independent PSU – 217/630 (30%), (44 Institutional Framework & supported by MCAI) • Procurement Training Program (Basic, Competency Management Capacity Based, Supporting) • Integrated Information System of HR Development *Based on Indicators Form OECD DAC
TRAINING PROGRAM TOWARD PROFESSIONAL PROCUREMENT OFFICERS Supporting Training (2011 – Now), such as: Basic Training (2008 – Now ) • Supply Chain Management Training; • Procurement for Villages; • Public Private Partnership Training; • Basic Level Procurement Training • Training for Trainers; (for Certification) • Risk Management for Construction Work, etc. • Lesson Objective: Understanding Presidential Regulation 54/2010 Competency Based Training (2013 – Now): • Duration 50 lessons hour • Functional Position Training, 3 Levels: • Blended Learning Method a. Entry level = Competency Selecting Supplier; (classroom and e-learning) b. Junior Level = Competency Management Contract; c. Middle Level = Competency Procurement Planning • Occupation Training for such as Budget Authority, Commitment Making Officer, PSU, etc.
PROCUREMENT PROFESSIONALIZATION CHALLENGES Politics and Local Geography and Demography : Government Policy: - Learning Center in each Region; - Supporting from local government for - The number of Trainer in each establishing PSU; Province is not balanced with - Supporting from Ministry of Civil the needs Aparatus for Functional Position - Readiness of e-learning - Procurement Ecosystem (Other resources (internet access) regulations) Human resources capacity vs procurement volume and complexity: Procurement Training become - Gap competency Bachelor Degree of Procurement - Need training and on the Job training Borobudur Temple, Indonesia
Regulation Update Functional 5 Position to 4 fulfill PSU 3 ManagedOptimized 2 Define d 1 WAY Repeatable Collaboration Initial with University FORWARD Maturity of Procurement Service Unit International Soft Skill Knowledg Standard e Competency Competency Skill Attitude Blended Learning
OPPORTUNITY LKPP – WB COLLABORATION IN PROFESSIONALIZATION PROCUREMENT OFFICERS International Certification for E-Learning Standard Procurement Development Competence Officers Development Capacity Building Scholarship for (more sharing LKPP officials knowledge)
“Credible Procurement creates nation welfare” Thank You www.lkpp.go.id LKPP Building, Jakarta - Indonesia
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