Ahmad Sobari, SH., MH., Ph.D

E-Procurement of Goods and Services to Reduce Corruption in Indonesia

Ahmad Sobari, SH., MH., Ph.D. (Indonesia)
On Seminar “New Legal Problems of Internet Market and Online Dispute Resolution”
Held by International Relations Law Center, HUFS Legal Research Institute,
Seoul, Republic of Korea, 14th October 2013

        History of the Internet in Indonesia started in the 1990s. Are some students who pioneered the Institut Teknologi Bandung, one of which is Onno W Purbo. Starting from their penchant to use amateur radio, and there was an idea to adopt the technology for the amateur radio TCP / IP in 1992.
Besides Onno W Purbo, a researcher from Space agency named Muhammad Ihsan also develop a network computer with amateur radio technology. He managed to connect the existing computer network in the ITB, the one on Space agency.
By utilizing the advancement of internet technology, currently the Indonesian government is making changes to the system of formation of clean and transparent governance (corruption suppress as much as possible), Community life is also demanding a public service that is able to meet the public interest, reliable and trustworthy and easily accessible interactively.  One effort to it has made ​​efforts to develop e-government. E-Government can be defined as a government organization which is based electronics in order to improve the quality of public services effectively and efficiently.  The process of transformation towards e-government requires the development of management systems, by exploiting advances in information technology that is a combination of computer technology and telecommunications technology. Through e-government can be formed network transaction information and public services and an interactive relationship with the corporate world.
Further step is to conduct E-Procurement, E-Procurement can be translated as “the procurement of goods and services electronically” which is now internet based, so it can expand market access and help create healthy competition.[1]  The use of E-Procurement technology products, respecting the state of the organization, volume procurement, market situation and market readiness. Implementation of E-Procurement shows that technology can help fix the problems in the process of procuring goods or services from the government.  E-Procurement is a user-friendly, Internet-based purchasing system that offers electronic purchase order processing and enhanced administrative functions to buyers and suppliers, resulting in operational efficiencies and potential cost savings.
The E-Procurement Service features the most modern business and commercial practices from the private sector and the most current technical capabilities offered by the Internet that will provide cost-saving opportunities to both suppliers and government.


  1. Law No.11of 2008 concerningInformation andElectronicTransactions(State GazetteYear 200858, Supplement No.4843);
  2. Presidential RegulationNumber 54of 2010 ConcerningGovernmentProcurement of Goodsor Services; That the Ministry / Agency/Local / Institution of Government must carry outprocurement of goodsorservices electronicallytosome or all ofthe work packagesin Fiscal Year2011;[1]
  3. Presidential Instruction 17of 2011 onthe PreventionandCorruption EradicationActionin 2012. This Presidential Instruction, mandated thatby December2012, allgoods expendituresbyministries/agencies shoulduse the”e-procurement” by 75percent. Forlocal governments thatuse theRegionalBudget, theexpenditureof goodsandservicesmustuse theE-Procurement by 40percent.[2]
  4. Regulation of the Head ofLKPP 2 of2010 ConcerningElectronic Procurement Service(LPSE), containstechnicalprovisionsfor theoperationalprocurement of goodsorservices electronically;
  5. Regulation of the Head of LKPPNumber1Year2011 AboutE-Tendering;
  6. LKPPHeadRule 5 of2011 AboutStandardDocumentforProcurementof GoodsorServicesby the Government, whichperformedElectronic.



Issues related to the procurement of goods and services by the government before Presidential Regulation Number 54 of 2010 Concerning the Procurement of Goods / Services government, there are several criteria, including 1) no announced plans to procurement of goods or services, as well as the procurement process is not transparent; 2) determination of the cost documents are expensive. As a result, only certain groups can follow. 3) there are some people who can not access the announcement.