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Implementing sustainable public procurement in Indonesia: economic impacts and socio-economic benefits of prioritising domestic products

Author

Listed:
  • Dewi Sadtyaji
  • Nana Storada Dwi Martadi
  • Teguh Yuwono
  • Yuwanto Yuwanto
  • Nunik Retno Herawati

Abstract

This study explores the implementation of sustainable public procurement (SPP) within Indonesia's legal framework and assesses the economic effects of prioritising domestic products. By analysing policy documents, government reports, and procurement data, the research offers a detailed view of how SPP principles are embedded in Indonesian laws and practices. It further evaluates the economic outcomes of focusing on domestic products in procurement. Data were gathered from secondary sources and interviews with staff from the National Public Procurement Agency (LKPP), the Ministry of National Development Planning (Bappenas), and Statistics Indonesia (BPS). Findings show that allocating IDR 312 44 trillion to domestic products and IDR 60.06 trillion to imports contributes an additional 1.12% to GDP, equating to IDR 105.6 trillion. This procurement ratio has also improved the employment rate by 2.18%, translating to 2.63 million jobs.

Suggested Citation

  • Dewi Sadtyaji & Nana Storada Dwi Martadi & Teguh Yuwono & Yuwanto Yuwanto & Nunik Retno Herawati, 2025. "Implementing sustainable public procurement in Indonesia: economic impacts and socio-economic benefits of prioritising domestic products," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 24(4), pages 478-493.
    • Handle: RePEc:ids:ijpman:v:24:y:2025:i:4:p:478-493
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