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Indonesia’s CPTPP bid must begin with procurement reform
Joining the CPTPP could help accelerate much-needed change, but only if Indonesia treats the agreement as a lever for structural reform, not a shortcut to foreign markets.
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Former communications and information minister and graft defendant Johnny G Plate (right) listens to questions from prosecutors during a hearing at the Jakarta Corruption Court on Oct. 19, 2023. The NasDem politician was indicted of accepting Rp 17.8 billion (US$1.1 million) in kickbacks from inflated procurement in a government 4G telephony project. (Antara/Fakhri Hermansyah)
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ndonesia’s formal application to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in late 2024 marks a milestone in the country’s trade diplomacy. Policymakers have hailed it as a pathway to boost exports, attract investment and deepen economic ties with key global markets.
But behind the optimistic headlines lies a more sobering question: Is Indonesia’s domestic governance architecture, particularly in public procurement, ready to meet the high standards that the CPTPP demands?
For years, public procurement has served both as a cornerstone of economic development and a hot spot for corruption. It governs over 30 percent of the national budget and shapes everything from road construction to health service delivery.
Despite reform milestones such as the establishment of the National Public Procurement Agency (LKPP) and the rollout of e-procurement systems, the sector remains plagued by collusion, opacity and weak enforcement.
Joining the CPTPP could help accelerate much-needed change, but only if Indonesia treats the agreement as a lever for structural reform, not a shortcut to foreign markets.
At the core of this challenge lies the pending public procurement bill, which has been included in the priority list of the National Legislation Program (Prolegnas). Far from a legislative formality, this bill will form the legal foundation for determining whether Indonesia can truly meet its CPTPP commitments, and more importantly, whether it can restore public trust in the management of state funds.
To succeed, the bill must go beyond procedural efficiency and administrative tweaks. It must embed enforceable principles of transparency, independent oversight and civic participation.
