Indonesia: Strengthening National Public Procurement Processes

Sovereign Project | 43219-012 Status: Closed


Latest Project Documents

Project Data Sheets (PDS) contain summary information on the project or program. Because the PDS is a work in progress, some information may not be included in its initial version but will be added as it becomes available. Information about proposed projects is tentative and indicative.

The Public Communications Policy (PCP) recognizes that transparency and accountability are essential to development effectiveness. It establishes the disclosure requirements for documents and information ADB produces or requires to be produced.

The Accountability Mechanism provides a forum where people adversely affected by ADB-assisted projects can voice and seek solutions to their problems and report alleged noncompliance of ADB's operational policies and procedures.

In preparing any country program or strategy, financing any project, or by making any designation of, or reference to, a particular territory or geographic area in this document, the Asian Development Bank does not intend to make any judgments as to the legal or other status of any territory or area.

Project Name Strengthening National Public Procurement Processes
Project Number 43219-012
Country Indonesia
Project Status Closed
Project Type / Modality of Assistance Technical Assistance
Source of Funding / Amount
TA 7653-INO: Strengthening National Public Procurement Processes
Japan Fund for Poverty Reduction US$ 1.00 million
TA 7653-INO: Strengthening National Public Procurement Processes (Supplementary)
Technical Assistance Special Fund US$ 225,000.00
Strategic Agendas Inclusive economic growth
Drivers of Change Governance and capacity development
Sector / Subsector

Public sector management - Public administration

Gender Equity and Mainstreaming No gender elements
Project Rationale and Linkage to Country/Regional Strategy

Project Outcome

Description of Outcome
Progress Toward Outcome The tangible outcome was basically achieved with the issuance of several decrees supporting enforcement the NPPA's standardized public procurement regulations usage for all the government ministries, agencies, regional governments and institutions
Implementation Progress
Description of Project Outputs
Status of Implementation Progress (Outputs, Activities, and Issues)

Output 1. The output was achieved by the issuance of amendment of the Presidential Regulation (Perpres) 54/2010 into Perpres 70/2012, which recognize the procurement's value and potential in accelerating budget execution and public investments. The amended Perpres clarifies ambiguous provisions to avoid multi-interpretation. As a result, the procurement procedures are clearer and the number of complaints from the tender participants or bidders to the procurement processes was reduced by 54.94 % in 2012.

Output 2. There are two outputs and both were achieved. The first output was achieved by the increment of about 85% of certified procurement personnel in 2012, compared to the accumulatively 107,717 personnel in 2011. The second output was achieved by the increment of procurement budget savings due to efficiency of IDR16.75 trillion in 2012 (a 274 percent increase from 2011). The national average rate of efficiency is 10.34 percent of the procurement budget. Quality improvements are noted from the procurement budget execution of 71.6 percent successful bid completion in 2011 to 91.32 percent in 2012 using e-procurement.

Output 3. The two outputs under Output 3 were achieved by the significant increment of visitor accessed NPPA website. In 2011, NPPA recorded about 1.8 million visitors accessed the NPPA's website. It was significantly increased in 2012 and 2013 cumulatively about 4.5 million visitors. The increase was due to the posting of government procurement plans and tender packages in the NPPA (INAPROC) website. The other output was achieved by completing a series of campaign through radio talk show, TV advertisement, sticker and pin dissemination, magazine publication, booklet, public seminars, and dissemination workshops in 2012, and those have been sustained up to date using the state budget. The latest peak campaign was during a National Coordinating Meeting opened by the Vice President of the Republic of Indonesia in November 2013 rendering full support by the government for 100 percent e-procurement and the use of new innovations, such as e-catalogues.

Output 4. The output was fully achieved by participation of all 731 government administrative units nationwide in using e-procurement system. All were served by mid-2012.

Geographical Location Nation-wide

Summary of Environmental and Social Aspects

Environmental Aspects
Involuntary Resettlement
Indigenous Peoples
Stakeholder Communication, Participation, and Consultation
During Project Design LKPP, WB, JICA, Japan Embassy.
During Project Implementation LKPP and other Development Partners such as JICA, WB, AusAid, USAID, MCC.

Business Opportunities

Consulting Services

The overall outcome of the consultants is to assist the NPPA in strengthening its role as the lead agency for public procurement reform resulting in an improved, standardized procurement process for all government administrations and their business community. The major outputs will be developed institutional capacity, professional procurement practitioners, increased public awareness of LKPP roles, and significant progress on e-procurement implementation and revised laws and regulations to support the major outputs.

The consultants will work closely with LKPP and relevant institutions to achieve the outputs and outcome. The consultants will be selected in accordance with ADB's Guidelines on the Use of Consultants (2007, amended time to time)

Responsible Staff

Responsible ADB Officer Renadi Budiman
Responsible ADB Department Southeast Asia Department
Responsible ADB Division Indonesia Resident Mission
Executing Agencies
National Public Procurement Agency
SMESCO Bld. 8th. Fl.
Jalan Jend. Gatot Subroto, Kav. 94
Jakarta 12780, Indonesia


Concept Clearance 29 Jan 2010
Fact Finding 27 Jan 2010 to 28 Jan 2010
Approval -
Last Review Mission -
PDS Creation Date 20 May 2010
Last PDS Update 24 Nov 2014

TA 7653-INO

Approval Signing Date Effectivity Date Closing
Original Revised Actual
19 Nov 2010 04 Jan 2011 04 Jan 2011 30 Nov 2012 30 Jun 2014 -
Financing Plan/TA Utilization Cumulative Disbursements
ADB Cofinancing Counterpart Total Date Amount
Gov Beneficiaries Project Sponsor Others
225,000.00 1,000,000.00 110,000.00 0.00 0.00 0.00 1,335,000.00 19 Nov 2010 1,188,368.02

Safeguard Documents See also: Safeguards

Safeguard documents provided at the time of project/facility approval may also be found in the list of linked documents provided with the Report and Recommendation of the President.

None currently available.

Evaluation Documents See also: Independent Evaluation

None currently available.

Related Publications

None currently available.

The Public Communications Policy (PCP) establishes the disclosure requirements for documents and information ADB produces or requires to be produced in its operations to facilitate stakeholder participation in ADB's decision-making. For more information, refer to the Safeguard Policy Statement, Operations Manual F1, and Operations Manual L3.

Requests for information may also be directed to the InfoUnit.