The Indonesian government is actively advancing the digital transformation of its procurement system for goods and services, aiming to foster efficiency, transparency, and accountability. This concerted drive was underscored at the recent Indonesia Catalogue Expo and Forum (ICEF) and Indonesia Procurement Forum & Expo (IPFE) 2025, held at JIExpo Kemayoran, Jakarta. These events, organised collaboratively by the Indonesian Government Procurement Policy Institute (LKPP), the Indonesian Chamber of Commerce and Industry (KADIN), the Indonesian Procurement Experts Association (IAPI), and the Association of Indonesian Municipalities (APEKSI), serve as strategic platforms to deepen digital procurement adoption and expand the involvement of micro, small, and medium enterprises (MSMEs) in national state spending.
Hendrar Prihadi, Head of LKPP, highlighted the forum’s crucial role in accelerating digital procurement, particularly through the development of an advanced catalogue and e-marketplace ecosystem explicitly tailored to government needs. This ecosystem aims to simplify transaction processes, making government procurement quicker, more efficient, and legally robust. Hendrar reassured procurement officials, citing clear job descriptions and a strong legal foundation underpinning e-purchasing, thereby encouraging confident usage of digital platforms without regulatory hesitation.
A central focus of the digital procurement drive is to optimise the role of MSMEs within the economic ecosystem, a priority aligned with Presidential Instruction No. 2 of 2022. This initiative is even more critical against the backdrop of Indonesia’s ambition to achieve robust economic growth targets, potentially up to 8 percent, by bolstering local product utilisation and strengthening domestic supply chains. Andi Zabur Rahman, chairman of IAPI, emphasised that the forum reinforces collaboration between procurement professionals and business actors nationwide to support these objectives.
A concrete example of this digital push is Mbizmarket, the official marketplace partner of LKPP, which showcased its platform at the ICEF-IPFE event. According to Ryn Hermawan, Mbizmarket’s CEO and founder, the platform significantly streamlines government and regional budget spending by offering a simple, transparent procurement process with just a few clicks. The platform’s inclusion of a Domestic Component Level (TKDN) marker is a valuable feature that aids procurement officials in identifying products’ local content percentages, thereby promoting domestic products. Moreover, Mbizmarket functions as a tax collector (WAPU) under Ministry of Finance regulations, simplifying tax reporting and remittance for transactions.
The government’s e-catalogue system, now in its sixth version, has been praised for transforming procurement practices by enhancing efficiency and transparency. Coordinating Minister for Maritime Affairs and Investment, Luhut B. Pandjaitan, during the previous year’s ICEF event, acknowledged the government’s dedication to inclusive economic growth through digital transformation. Meanwhile, Anindya Novyan Bakrie, Chairman of KADIN Indonesia, remarked on the e-catalogue system’s ability to open significant opportunities for regional businesses by streamlining procurement processes and promoting domestic manufacturers.
The impact of digital procurement extends beyond administrative efficiency. Reports indicate that for certain products such as computers and agricultural machinery, the e-catalogue system has enabled budget savings of up to 40%. These savings not only reduce government expenditure but also stimulate demand for locally produced goods, resonating with the government’s broader commitment to prioritise domestic products as emphasised by the Deputy Minister of Agriculture.
ICEF-IPFE 2025 further expanded its scope by including a diverse programme of activities such as exhibitions featuring national and international brands, seminars, business forums, and business matching sessions. Additionally, it hosted ten national talk shows with representatives from various sectors, including the Ministries of Health and Public Works, the Supreme Audit Agency, state-owned enterprises, and legal bodies, reflecting the event’s comprehensive approach toward stakeholder engagement in procurement digitalisation.
In summary, the digitalisation of Indonesia’s government procurement system represents a multifaceted effort to ensure that public spending becomes more efficient, transparent, and supportive of the domestic economy. Through events like ICEF-IPFE and partnerships with platforms such as Mbizmarket, Indonesia is steadily building an ecosystem where MSMEs thrive, procurement professionals are empowered, and domestic product utilisation is maximised — all critical elements in steering the nation towards its ambitious economic and developmental goals for 2045, dubbed Indonesia’s Golden Era.
Source: Noah Wire Services
