Indonesia - Country Procurement Assessment Report : Reforming the Public Procurement System

The main objectives of the Country Procurement Assessment Review (CPAR) are to diagnose the public procurement system in Indonesia, assess actual compliance with the country's procurement laws and regulations on the ground, and identify reforms to improve the existing system in line with internationally accepted principles. Section 1 gives an overview. Section 2 describes Indonesia's existing public procurement regime and key issues. Section 3 discusses implications of decentralization for public procurement. Section 4 describes the strategy for strengthening fiduciary safeguards in Bank-financed projects based on lessons of experience and findings of the CPAR. From all accounts, the public procurement system in Indonesia does not function well. It is not market-driven, has been prone to misuse and abuse, and reduces value for money for public funds. The report identifies the key reasons why the system does not yet function well. The report suggests the following priority actions toward a reformed procurement process: a) reforming the legal, regulatory, and institutional framework; b) increasing competition; c) improving procedures and practices; d) building professional capacity; e) preparing for decentralization; and f) strengthening enforcement.

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Bibliographic Details
Main Author: World Bank
Language:English
en_US
Published: Washington, DC 2001-03-27
Subjects:ACCOUNTABILITY, ANTI- CORRUPTION, ANTI-CORRUPTION, ANTICORRUPTION, AUDITS, AUTHORITY, BUDGETING, CERTIFICATION, CIVIL SERVICE, CIVIL SERVICE REFORM, CIVIL SOCIETY, COLLUSION, COLLUSIVE PRACTICES, COMPETITIVE BIDDING, COMPLAINTS, CONFLICTS OF INTEREST, CORRUPT PRACTICES, CORRUPTION, CORRUPTION SURVEYS, DECENTRALIZATION, DECREE, DECREES, DEVELOPMENT PLANNING, DISCLOSURE, DISTRICTS, ETHICS, EXECUTING AGENCIES, EXECUTION, EXPENDITURE, FINANCIAL MANAGEMENT, FISCAL, FISCAL MANAGEMENT, FRAUD, GOOD GOVERNANCE, GOVERNANCE REFORM, GOVERNMENT AGENCIES, GOVERNMENT EFFORTS, GOVERNMENT LEVEL, GOVERNMENT MINISTRIES, GOVERNMENT REFORM, HUMAN RESOURCE, IMPLEMENTING AGENCIES, INSTITUTIONAL ARRANGEMENTS, INSTITUTIONAL CAPACITY, INSTITUTIONAL FRAMEWORK, INTEGRITY, INTERNAL AUDIT, INTERNATIONAL TRADE LAW, JUDICIAL SYSTEMS, LACK OF CLARITY, LEGAL FRAMEWORK, LEGAL PROVISIONS, LEGISLATION, LEGISLATIVE BODIES, LEGISLATURES, LEVELS OF GOVERNMENT, LOBBYING, LOCAL GOVERNMENT, LOCAL GOVERNMENTS, MALFEASANCE, MEDIA, MINISTERS, MINISTRY OF FINANCE, MUNICIPALITY, NATIONAL GOVERNMENTS, NATIONAL LEVEL, NATIONS, NEPOTISM, OMBUDSMAN, PACKAGING, PROCUREMENT LAWS, PROCUREMENT POLICIES, PROFESSIONAL ASSOCIATIONS, PROJECT IMPLEMENTATION, PUBLIC AGENCIES, PUBLIC FUNDS, PUBLIC OFFICIALS, PUBLIC PROCUREMENT, PUBLIC PROCUREMENT SYSTEM, PUBLIC RESOURCES, PUBLIC SECTOR, PUBLIC SECTOR MANAGEMENT, PUBLIC SUPPORT, PUBLIC WORKS, PURCHASING, REPRESENTATIVES, SANCTIONS, SOCIAL JUSTICE, SOCIAL SAFETY, SOCIAL SAFETY NET, SOCIAL SECTOR, STATE FINANCE, STATE-OWNED ENTERPRISES, TRANSPARENCY PROCUREMENT, GOVERNANCE, INSTITUTIONAL REFORM, DECENTRALIZATION IN MANAGEMENT, COMPLIANCE, CAPACITY BUILDING, REGULATORY FRAMEWORK, SUPERVISION SYSTEMS,
Online Access:http://documents.worldbank.org/curated/en/2001/03/1089486/indonesia-country-procurement-assessment-report-reforming-public-procurement-system
https://hdl.handle.net/10986/15700
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Summary:The main objectives of the Country Procurement Assessment Review (CPAR) are to diagnose the public procurement system in Indonesia, assess actual compliance with the country's procurement laws and regulations on the ground, and identify reforms to improve the existing system in line with internationally accepted principles. Section 1 gives an overview. Section 2 describes Indonesia's existing public procurement regime and key issues. Section 3 discusses implications of decentralization for public procurement. Section 4 describes the strategy for strengthening fiduciary safeguards in Bank-financed projects based on lessons of experience and findings of the CPAR. From all accounts, the public procurement system in Indonesia does not function well. It is not market-driven, has been prone to misuse and abuse, and reduces value for money for public funds. The report identifies the key reasons why the system does not yet function well. The report suggests the following priority actions toward a reformed procurement process: a) reforming the legal, regulatory, and institutional framework; b) increasing competition; c) improving procedures and practices; d) building professional capacity; e) preparing for decentralization; and f) strengthening enforcement.