Report

Green Public Procurement in Indonesia

Policies, practices, and ways forward

This report explores the state of green public procurement (GPP) in Indonesia, examining relevant policies, practices, and challenges. It analyzes Indonesia's legal framework for GPP, highlights case studies, and evaluates the tools used for implementation. The report also offers recommendations for advancing GPP in Indonesia, including enhancing capacity building and improving monitoring mechanisms to promote GPP practices.

  • Procurement accounts for over 45% of Indonesia's government spending, causing environmental impacts while also holding the potential to transform markets through GPP. #GreenProcurement #Sustainability

  • Indonesia can advance green public procurement through better training, easy-to-use tools, and stronger incentives for procurers and suppliers. #ClimateAction #GPP

GPP is a powerful tool for governments to drive sustainability and meet environmental goals. This report examines the state of GPP in Indonesia, which has made significant strides in this area but still faces challenges in widespread adoption and effectiveness.

Key findings include:

  • Indonesia has established a strong policy framework for GPP, with provisions integrated into national development plans and procurement regulations.
  • Several tools and initiatives are in place to support GPP implementation, including eco-labels, sustainability standards, and specialized procurement platforms.
  • Challenges remain, including limited understanding of GPP among procurement officials, availability of green products, cost concerns, and inadequate monitoring mechanisms.

The report provides four key recommendations to advance GPP in Indonesia:

  1. improve easy-to-use tools tailored for public procurement,
  2. enhance training, capacity building, and support infrastructure,
  3. provide financial and non-financial incentives for procurers and suppliers, and
  4. improve GPP monitoring through integrated data collection and analysis.

By implementing these recommendations, Indonesia can accelerate its progress toward a more sustainable and environmentally conscious procurement system, supporting its green economy goals and positioning itself as a regional leader in GPP practices.

This study will be valuable for policy-makers, procurement officials, and sustainability professionals looking to understand and scale up GPP in Indonesia and other developing countries.

Report details

Topic
Public Procurement
Project
Accelerating Decarbonization Through the Power of Procurement
Focus area
Climate
Economies
Publisher
IISD
Copyright
IISD, 2024