INDONESIA

Country Public Procurement Profile Survey (with E-Government Procurement Overview)
COUNTRY Indonesia
Respondent Agency National Public Procurement Agency (LKPP)
Date of First Submission Thursday, June 16, 2011
Date of Last Update Monday, October 17, 2011
Part A.  Country Public Procurement Profile (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 Does your country have a central Public Procurement Authority (PPA) with legal authority through legislative enactment, executive decree or administrative regulation to act as functional and normative body in public procurement?
a.      Yes
2 The PPA’s mandates involve the following responsibilities (please select as many as applicable, one per line):
a.       formulation of procurement policy and regulations
e.       procurement complaint review
f.       monitoring and evaluation at country, sector and procuring entity level
g.       professional advise and guidance in public procurement
h.      procurement capacity development and training
Others (please specify):
3 The PPA reports to:
a.       President/Parliament
Others (please specify):
4 Number of people employed by the PPA: (Please provide an organizational chart of the PPA and email address for communication, if possible)
d. 15 and more
Email address for communication with PPA:
5 Does PPA have a website?
a.      Yes
Link to PPA website:  www.lkpp.go.id
6 The PPA website covers the following areas (please select as many as applicable, one per line):
a.       procurement related regulations and documents
b.      news, events and policy initiatives related to public procurement
e.       posting of  procurement plan(s)
f.       specific opportunities and notices for bidders
g.       posting of contract award with name of the winning bidder and contract value
j.        centralized online system for collecting procurement data and statistics
k.      linkage to an e-procurement system with actual procurement transactions
Other functions (please specify):
7 Do you have a public procurement law or any other regulatory act with legislative power? (Please provide a link or a scanned copy of its English version.) If yes, which of following are true (please select as many as applicable, one per line)?
c.       the law does not cover procurement conducted by state owned enterprises
f.       the law allows framework contracts
h.      the law establishes a decentralized system with prior review and approval procedures for large contracts
k.      the law mandates standardization of procurement practices mandating use of common procedures and standard bidding documents and forms
l.        the law currently provides principles and general procedures  that makes provision for the  use/adoption of e-procurement
m.    the law describes principles for national registration and classification system for contractors as not a pre-condition to participate in biding process or to qualify for specific contracts.
o.      the law provides for an administrative review mechanism for complaint that allows bidder to challenge procuring entity’s decision before filing for judicial review to the court
Link to public procurement law, if any:  N/A
8 Do you have a strategic plan or reform agenda for developing the procurement system in your country? (Please provide a copy or link)
Others (please specify):  Items a, b, and c apply.
9 What kind of initiatives and assistance in your view is needed to improve your public procurement system in the near future? [Please select your five most important initiatives among the choices, one per line.]
a.       Conduct an overall assessment of the effectiveness of the country’s public procurement system
b.      Assess compliance with country’s public procurement rules and regulations by procuring entities
c.       Assess effectiveness of the public financial management system and public administration system to generate support for public procurement policy reform
d.      Create a sustainable training system for procurement practitioners to ensure compliance, professionalism and career development
e.       Create a single window for procurement related information and statistics led by PPA and connect with e-procurement system
Others (please specify):
Additional notes, if any:  Also f. Launch communication campaign to improve public awareness of country’s public procurement policy; h. Analyze the structure and business practices of PPA and support efforts to improve its capacity and performance; i. Reform public procurement strategy to further the development of small and medium enterprises through procurement; j. Reform public procurement strategy to further the economic rights of disadvantaged groups,  e.g, indigenous people, disabled people through procurement; and k. Reform public procurement strategy to further the economic rights of disadvantaged regions through procurement
10 What is the size of the public procurement of your country? Please select the closest corresponding values based on most recent available information or your rough assessment?
I. Average annual procurement under national and local budget
f.    more than US$ 1 billion
g. Other (please indicate a more specific amount, if available):  more than USD 40 billion in 2009
II. Average annual procurement by State Owned Enterprises (those who are subject to the procurement regulations)
b.      between  US$ 10 to 100 million
g. Other (please indicate a more specific amount, if available):
III. Average annnual procurement under Official Development Assistance (Donor-funded projects)
c.       between  US$ 100 to 200 million
g. Other (please indicate a more specific amount, if available):
Part B.  e-Government Procurement Planning (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 Has your government formed or implemented a concrete plan for development of e-Gp?  Please select only one answer.  (If yes, please email a copy of the plan to mkhaltarpurev@adb.org).
b.  Yes, this is a comprehensive plan and roadmap developed by the government agency responsible for IT systems and e-Government issues
2 Which of the following best describes the functionality of your planned e-Gp initiatives? (Please select as many as applicable, one per line.)
a.       a single website that consolidates and publishes all national information and policies related to public procurement
b.      regional or local websites for publishing and sharing all local information related to public procurement
d.      e-publication of procurement awards and results
e.        system for bidders to download bidding documents and RFPs in response to the published procurement notices
f.       e-bidding system for bidders to submit their bid or proposals online and observe the online public opening of the bid
l.        electronic supplier registration system
3 Do you have plans to implement any new e-Gp system at the national level? (Please select as many as applicable, one per line.)  ALREADY DONE
4 Does the scope of your e-GP plans include the following? (Please select as many as applicable, one per line, and please provide a copy of the relevant documents if possible.)
a.    improving legal architecture to facilitate e-Gp system implementation
b.   assessing e-readiness of procuring entities through surveys and feasibility studies
c.   Obtaining/searching funding support for e-Gp system enhancement
f.    testing and obtaining relevant government agency approvals with respect to information security
g.    piloting e-Gp module
h.   drafting amendments to the public procurement law and its implementing rules and   regulations to facilitate  e-Gp operations
i.   generating public awareness and conducting consultation with suppliers to promote development of e-Gp system
Part C.  e-Government Procurement System Implementation (Only those answers selected by the respondent from a multiple choice menu would appear below.)
1 General Information about the e-GP system presently in operation
a.  System Name:  SPSE (Sistem Pengadaan Secara Elektronik)
b.  Website Address:  see www.inaproc.lkpp.go.id for all locations’ addresses
c.  Administration/Operator of the System:  each location (agency)
d.  Agency(s) using the System:  see www.inaproc.lkpp.go.id for all locations’ addresses
e.  Year of launch:  2008
2 Brief description of the system in terms of coverage and main functional modules
a.  e-publication/downloading:  download tender document
b.  e-bidding:  submit bidding document
c.  e-contracting:  not yet
d.  e-payment:  not yet
e.  e- reverse auction:  not available
f.  e-catalog purchasing:  for vehicle
g.  e-Guarantee/security:  not yet
3 Other government IT systems that the e-Gp system links to (please select as many as applicable):
a.       National Treasury and Budget
b.      Tax
f.       Contractors and Suppliers Registration and Classification
Others (please specify):
4 How do the bidders input and submit their proposal/tender documents into your e-Tendering  System, if any (please select as many as applicable)?
b.      upload files
Other methods (please specify):
5 If bid evaluation is carried out online, briefly describe the process of online evaluation.
tender committee firstly download bidding document, and evaluate the bidding document manually, then entry the result in to system.
6 Is bid security/guarantee required on your e-procurement system? (Please explain briefly.)
Yes
7 Does the e-Gp system require specific operating system, browser?
No
8 Describe the security method (e.g. digital authentication) used in the e-Gp system.
Digital Identity (RSA)
9 Are electronic and paper documents legally equivalent in your country?
Yes, by the law.
10 Briefly describe the management of the e-Gp system in terms of :
a.  the business model (managed in house, outsourced etc.):  Managed in house
b.  users fee for suppliers or procuring agencies (if any):  No
c.  training (available programs, e-learning, manuals etc):  Decentralized in every agencies
d.  certification ( if required who issues, how):  will be in operation in 2012, currently is beta version to be tested in two locations
e.  Call Center (Q&A for user requirements etc.):  in every agencies
f.  Self teaching (modules for user requirements):  user guide
g.  Service centers (physical service centers to meet user requirements):  Helpdesk and IT Operation
h.  Any incentives offered to encourage adoption of this system by other procuring entities:  No
11 Please provide the following statistics (if available):
a. number of procuring entities legally required to use the e-Gp system: about 600
b. number of procuring entities registered in the e-Gp system as of December 31 2010:  254
c. number of procuring entities that actually used the e-Gp system since its inception:  11
d.value of the contracts awarded in 2010  (in USD):   N/A
e. value of the contracts (awarded) registered in the e-Gp in 2010 (in USD):  (IDR: 11,378,797,000,000) (USD: 1,264,310,778)
f. active business (contractors and suppliers) in the country as of December 31, 2010:  22,806
g. contractors/suppliers registered in the System as of December 31, 2010:  34,306
12 How do you encourage procuring entities and suppliers to use the e-Gp system?
by the law, public awareness, training, and national summit
13 Do you allow individual procuring entities to customize national e-Gp systems? If yes, in what way(e.g. use a different website design with their logo)
only logo (header/banner) and “home page”
14 Are individual agencies free to use different systems to those approved at the central level? If yes, is there any central approval procedure for this?
No
15 What are the key success factors you observe in introducing or implementing e-Gp in your public procurement system framework (please list them if any)?
a. Understanding
b. Ownership
c. Commitment and Participatory
16 What are the major problems you faced in introducing or implementing e-Gp system under your public procurement framework (please list them)?
a. IT literacy
b. Old mindset
17 What approach to the e-Gp development is suitable for your country’s public procurement system and why? (Please briefly describe your answer.)  OPTIONAL
Decentralized in regulated environment, free license
THANK YOU!