IsDB, e-GP and In Is Indonesia E-Procurement Forum: Enhancing - - PowerPoint PPT Presentation

isdb e gp and in is indonesia
SMART_READER_LITE
LIVE PREVIEW

IsDB, e-GP and In Is Indonesia E-Procurement Forum: Enhancing - - PowerPoint PPT Presentation

Provid idin ing Resources, , Fig ighti ting Poverty, , Res estorin ing Dig ignit ity . IsDB, e-GP and In Is Indonesia E-Procurement Forum: Enhancing Public Spending December 2015, Vienna, Austria Project Procurement (P (PPR) ) Di


slide-1
SLIDE 1

Is IsDB, e-GP and In Indonesia

E-Procurement Forum: Enhancing Public Spending December 2015, Vienna, Austria

Project Procurement (P (PPR) ) Di Divisi sion Ope perations s Poli

  • licy An

And Ser Services s De Department (O (OPSD SD) Islam slamic De Development Ban ank

Provid idin ing Resources, , Fig ighti ting Poverty, , Res estorin ing Dig ignit ity .

slide-2
SLIDE 2

Outline

  • 1. Indonesia at a Glance
  • 2. IsDB and Indonesia
  • 3. IsDB and e-GP
  • 4. IsDB and Pilot Program on e-GP in Indonesia
  • 5. Lesson Learned, Challenges and the Way forward

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

slide-3
SLIDE 3

1. . In Indonesia at t a Gla lance

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

slide-4
SLIDE 4

Indonesia at a Glance

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

Data

  • La

Land 1,91 1,919,4 ,440 km km2

  • Wit

ith 17.5 17.508 isla lands

  • Pop
  • pulatio

ion 255 255 mill llion

  • Den

Density 134 134/k /km2

GDP 888.5 billion Growth: 4,67% Poverty headcount 11.3%

Economical

slide-5
SLIDE 5

2. . Is IsDB and In Indonesia

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

slide-6
SLIDE 6

IsDB and Indonesia

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

No No Sec Sector Amount

(m (mil illion USD) SD)

1 Agriculture 205 2 Health 64.97 3 Education 466.04 4 Transportation 152.55 5 Finance 0.45 6 Water and Sanitation 100 Grand Total 989 Totally 16 Active Projects

100 200 300 400 500 Agriculture Health Education Transportation Finance Water and Sanitation

IsDB Active Portfolio

slide-7
SLIDE 7

3. . Is IsDB and e-GP

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

slide-8
SLIDE 8

IsDB and e-GP

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

The Government of Indonesia’s (GOI’s) procurement reform agenda already includes the introduction of e-procurement on a phased basis. At the national level, the development

  • f

a National e-Procurement System has been on-going since 2004 with financing by the Indonesian

  • Government. Limited additional

technical assistance has been provided by the donor community The new presidential regulation No. 54/2010 will enforce the implementation of the national e- procurement system in all government administrations nationwide by the end of 2012. This lends itself to significant growth in the number

  • f

participating agencies, vendors and all Ministries

  • ver

the coming years.

LKPP e-GP System MoPW e-GP System

slide-9
SLIDE 9

IsDB and e-GP…

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

The World Bank issued its No-objection on using of e-GP of MoPW for NCB, ICB, Consulting Services and e-GP of LKPP for only NCB in February 2014. The Asian Development Bank issued its No-objection

  • n using of e-GP of MoPW for NCB, ICB, Consulting

Services and e-GP of LKPP only for NCB in August 2014. The Bank has not any previous experience

  • n

promoting or using of e-GP in its MCs. No project under IDB funded projects is using e-GP in Indonesia.

MDBs and e-GP in Indonesia

slide-10
SLIDE 10

4. . Is IsDB and Pil ilot Program on e-GP in in In Indonesia

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

slide-11
SLIDE 11

IsDB and Pilot Program on e-GP in Indonesia

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

The Bank has not any previous experience

  • n

promoting or using of e- GP in its MCs. Recently, upon request received from Government

  • f

Indonesia for application

  • f

e-GP in SANIMAS Community Based Sanitation Project, the Bank Starts its assessment as Pilot on the application

  • f

e-GP which is focused on:

①Review the legal framework for application

  • f e-GP in Indonesia

②Review and assess the e-GP process and methods are used in Indonesia taking into account the results of similar assessments done by MDBs presented in the country ③Review the compliance of application of e- GP in Indonesia with the procurement policy and procedures of the Bank ④Review the compliance of application of the e-GP system of Indonesia with MDB’s e-GP requirements ⑤Identify the potential risks and required mitigations on application of e-GP system in the Bank funded projects ⑥Adaptation of relevant SBDs for being used under implementation of e-GP in Indonesia ⑦Review the customization needed to be recommended to GoI for using of e-GP system during the implementation

  • f

funded projects

slide-12
SLIDE 12

IsDB and Pilot Program on e-GP in Indonesia…

Cen Central l Governmen ent t Bu Budget

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

Fiscal Year State Budget (billion USD)

2012 143.5 2013 168.3 2014 184.2 2015 203.9 Volume Procurement: 30% - 40% equivalent with 60 – 81 billion USD

50 100 150 200 250 2012 2013 2014 2015

State Budget (billion USD)

slide-13
SLIDE 13

IsDB and Pilot Program on e-GP in Indonesia…

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

1

  • Inefficiency of State Budget Management: The government estimates that

certain amount of state budget lost every year about 20% – 30% due to inefficiency associated with the procurement processes

2

  • Corruption Cases: Corruption Eradication Commission (KPK) stated 80% of all

corruption cases are associated with misused of public procurement.

3

  • International

and National Competitiveness: (i) Lack

  • f

capacity and

  • pportunity to participate in national economy (small and medium enterprises),

(ii) Lack of capacity and opportunity to participate in international market

4

  • High Cost Economy: Lack of competitiveness due to market asymmetric

information and closed market.

Cur Current Issu Issues

slide-14
SLIDE 14

IsDB and Pilot Program on e-GP in Indonesia…

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

Procurement functions decentralized throughout procurement unit/tender committee from all procuring entities e-Procurement is implemented electronically through decentralized e-procurement system known as SPSE All provincial, City and Districts have obligation to establish e-Procurement Service Unit known as LPSE

By 2015, all procuring entities should spend 100% of budget using e-Proc

As of 2015, success to establish 627 LPSE as single e- market place (54 Ministries/Agencies,…..etc)

slide-15
SLIDE 15

IsDB and Pilot Program on e-GP in Indonesia…

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

Transparency

  • 1. Mandatory to post tender announcement in publicly

accessible medium (web portals)

  • 2. Sequence of procurement processes can be monitored

by public

  • 3. Increased quality of procurement information and

contract management for audit trail

  • 4. Fostering participative monitoring and public oversight.

Effectiveness

  • 1. Eliminating the costs of obtaining information about a

tender process that can be obtained without charge for registered bidders.

  • 2. Ease of tracking compliance, eliminate irregularities to

take needed corrective actions. 3. Reduce cost

  • f

procurement advertisement

  • n

conventional media.

Efficiency

  • 1. Reduce exhaustive manual process and procedure lead

time through e-tendering and the use of e-catalogue system.

  • 2. Government budget savings gradually increased, from

around 20% (2010) to around 30% annually, resulting from healthy competition and reasonable O/E calculation

Competition

  • 1. Increased vendor database and number of participating

bidders to foster competition (registered bidder database grew by 200% from 2010-2012, though the growth rate become saturated at 3% in 2014) 2.

Nurturing competition reflected in increased number

  • f

participating bidders and limit the collusion amongst bidders/local cartels as face-to face interaction is no longer required

Impact of e-GP in Indonesia

slide-16
SLIDE 16

IsDB and Pilot Program on e-GP in Indonesia…

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

slide-17
SLIDE 17

5. . Lesson Learned, , Challenges and Way forward

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

slide-18
SLIDE 18

Chall allenges Way forw rward

Le Lesson sson Le Learn arned, d, Chal allenges lenges an and Way for

  • rward

ard

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

The The IsDB’s assessment for imple lementatio ion of

  • f e-GP

GP in in the Bank upcoming funded projects has been started in in Aug August 2015 2015 and and is is pl planned to to be be com

  • mple

leted by by end end of

  • f De

December 2015 2015.

  • 1. Technological limitations:
  • Limitation in Bandwidth
  • Stability of the Internet Connections
  • Technical Capacity of the End-users
  • 2. Introducing of SPSE version 4
  • Full e-procurement system
  • 1. Prepare and draft an e-GP Strategy

for the Bank

  • 2. Consideration of e-Procurement in

the Bank’s procurement policy during its update

  • 3. Join to the MDB’s e-GP Working

Group

  • 4. Capacity Building Program for e-

Procurement internally for Bank’s professional staffs and externally for MCs

slide-19
SLIDE 19

Wednesday, December 02, 2015 E-Procurement Forum: Enhancing Public Spending

slide-20
SLIDE 20

Thank You

لضفأ ً لببقتسم ينبن ً اعم

Together we build a better future Ensemble nous construisons un avenir meilleur

Project Procurement Division Operation Policy and Services Department www.isdb.org

prepared by Amirmehdi Asghari Senior Project Procurement Specialist amasghari@isdb.org