E-procurement supports greater transparency at the AGO

The procurement of goods and services is one area where there are opportunities for rent-seeking behaviour in Indonesian bureaucracies. A survey by Indonesia Procurement Watch (IPW) indicates that some form of bribery occurs in 89% of transactions involving government procurement of goods and services. In cases heard by the Corruption Eradication Commission (KPK) up to 80% relate to government procurement.

To address this problem, the Government of Indonesia issued a regulation requiring all government institutions to establish an electronic system for procurement in 2010. AIPJ supported the Attorney General’s Office (AGO) to establish its system and is now helping develop a team within the AGO to manage it.

“E-procurement means more people can now see online when government tenders are announced. It allows for more bidders to participate, providing fairer competition and better safeguards against corrupt practices,” said Hayie Muhammad, Program Director for IPW. IPW was engaged by AIPJ to establish the system for the AGO. The AGO is now advertising tenders online, and so far in 2012, 15 tenders have been listed online for goods and services worth over IDR 41 billion (AUD 4.3 million).

AIPJ will continue to support efforts to promote greater transparency at the AGO and in other law and justice institutions.