“Fiscal discipline does not stop when the budget is passed; it must be present in the spending of every rupiah,” the President said in his Financial Notes address delivered before lawmakers and government officials on Friday.

“All this time, there have been too many ministries, institutions and regional administrations purchasing the same goods separately, but at different prices.”

He went on to say that procured goods often had the same specifications but the processes were repetitive or different and the volumes fragmented and uncoordinated, “weakening the state’s bargaining power”.

“Whether the central government or regional, city or district administrations, we are the government of the Republic of Indonesia,” the President said, adding that the government would therefore “consolidate all goods and service procurement”.

The LKPP was established in 2007 and answers directly to the president for its responsibility in developing, formulating and enacting policies on government procurement.

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Citing the LKPP’s findings, the President said a consolidation effort at the regional government level had already saved 21 percent of the procurement budget in 2025.

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