E-Commerce Firms Commit to Transparency in Govt Procurement

Jakarta Globe, Sarah Yuniarni, May 26, 2016

Four e-commerce companies, including one of the country's oldest, Bhinneka.com,
have signed integrity agreements with the Services Procurement Policy Institution,
known as LKPP, on Thursday (26/05) to uphold transparency in the government's online
procurement system. (JG screenshot)

Jakarta. Four e-commerce companies, including one of the country's oldest, Bhinneka.com, have signed integrity agreements with the Services Procurement Policy Institution, known as LKPP, on Thursday (26/05) to uphold transparency in the government's online procurement system.

Other e-commerce sites that entered into the agreement are AnugrahPratama.com, Ayoklik.com, and Mbiz.co.id, the Lippo Group's online procurement commerce site.

The government has developed an e-catalog over the last few years, which lists the goods and services it needs online. The catalog also lists specifications and prices from several suppliers and contractors.

It is expected to speed up the procurement process as it gives the government the freedom to directly choose the best offer from the list.

This system could abolish the tender system, which often sees prices of goods and services marked up multiple times, giving rise to corrupt practices.

"Also, all the payments are by bank transfer, not in cash," Jakarta Governor Basuki Tjahaja Purnama said during a discussion at the Grand Sahid Hotel in Central Jakarta.

Basuki added that the e-catalog would create opportunities for local businesses and empower them.

"We will benefit when everybody acts as a watchdog," LKPP head Agus Prabowo said.

According to him, the e-catalog will create openness and encourage fair competition between businesses.

The government plans to accelerate the implementation of the e-catalog, which it will reduce the time needed for purchases and make it easier to draw up budgets, since the verified prices of goods are listed on the website.

Mbiz.co.id is a Jakarta-based online marketplace focused on providing procurement solutions. Customers have access to a large number of categories of goods, including electronics and industrial equipment.

"When we applied to be listed on the government e-catalog, everything needed to be in detail, including our human resources and infrastructure, but it's fair," Mbiz.co.id co-founder Andrew Mawikere said.