LKPP chairman Roestam Sjarief said Thursday his institution recognized that the lack of transparency in goods and service procurement process in the country had become public concern.

The e-procurement system would “minimize misappropriations as well as to make procurement processes more efficient financially and more timely,” Roestam said, adding that LKPP was now building the system’s supporting software and hardware scheduled for completion by next year.

“It is not easy to make the system strong and secure. We are talking about an online system managing a lot of funds. Therefore it must be reliable and safe,” he told reporters after attending a hearing with House of Representative’s Commission XI on financial affairs.

Roestam cited some examples of ministries and government institutions that had begun implementing e-procurement and been successful in saving a lot of money.

He referred to the West Java administration which demonstrated increased efficiencies resulting in savings of  about 30 percent of the administration’s budget, after implementing the internet-based procurement system.

The Foreign Ministry and Public Works Ministry, and Yogyakarta and North Sulawesi provincial administrations are following West Java’s success story.

If all government agencies nationwide could implement similar systems, Roestam went on, the state could save up to Rp 315 trillion, or about 30 percent of the 2010 state budget of Rp 1,047.67 trillion.

“One of the obstacles in this program is the lack of good internet connection availability in some remote regions and the lack of information technology competencies.”

Roestam acknowledged that the system would not be able to fully eradicate misappropriation in the procurement process. “But the system will surely make significant efficiencies and reduce the chances for culprits who want to misuse the procurement processes,” he said.

The system would be based on the internet system and open to the public, Roestam said.

LKPP would also launch an online monitoring and evaluation system which would be able to automatically detect any irregularities in procurement processes, he said.

The system will also provide an online complaint system where anybody can submit information related to any perceived wrongdoing in procurement processes, he added.

“We will follow up the information afterward. If we find that the submitted complaints are true, we can intervene with the officials involved in the tender committee.”

Electronic announcement of procurement projects by the central government can be accessed at www.pengadaannasional-bappenas.go.id which provides an extensive list of procurement projects for 2007 including a list of blacklisted companies.

The LKPP is now also discussing a bill of procurement law with the legislators in the Commission XI.

“The law will strengthen LKPP’s authorities to monitor and tackle mismanagement in the government’s procurement projects,” legislator Andi Rachmat said. (bbs)

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