KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Promoting Better Procurement Governance, Kadin Highlights the Importance of Competence and Digitalization

Jakarta - Deputy Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) for the Kalimantan Region, Andi Yuslim Patawari, emphasized the importance of enhancing the competency of business actors in the procurement of goods and services. This, he stated, is crucial to preventing irregularities and fostering a healthy partnership between businesses and the government.

He conveyed this message during a talk show at the Indonesia Catalogue Expo and Forum (ICEF) and the Indonesia Procurement Forum & Expo (IPFE) 2025, themed "Transforming Healthcare Services through Digitalization and Sustainable Procurement for a Healthy Indonesia 2045," held at Jakarta International Expo (JIExpo), Kemayoran, Jakarta, on Friday (August 1, 2025).

In his presentation, Andi noted that nearly all institutions today have underscored the importance of competency as a prerequisite to mitigating potential legal violations. However, he revealed that challenges remain unresolved in actual field implementation.

“When we talk about the procurement of goods and services, competency is required in all areas. Almost every institution now enforces the need for competence to avoid audit findings or irregularities that could lead to legal consequences,” he stated.

He cited an example from the Covid-19 pandemic, during which several entrepreneurs who partnered with the government to procure medical equipment ended up facing legal issues even though the transactions had been conducted officially and followed directions from regional authorities.

“During Covid, with all due respect, it’s fair to say our government was overwhelmed and unable to fully anticipate extraordinary events on the ground. Governors and regional leaders called on any business actor able to supply Personal Protective Equipment (PPE) or medical devices. We made purchases and conducted transactions in accordance with the rules. But what’s happening today? Many of our colleagues—perhaps members of business associations are being investigated by law enforcement, even though the circumstances at the time were extraordinary,” Andi explained.

He further highlighted the various challenges still faced by business actors, including the digital divide, low health worker literacy, and insufficient incentives for technological adaptation.

However, he questioned whether, even after meeting all the required standards, businesses could be assured of protection from legal uncertainty.

“If all the necessary requirements are fulfilled by business actors, can we be certain that there will be no interference? Can we guarantee that our colleagues won’t be summoned by law enforcement? This is something we need to discuss together,” he asserted.

Andi also stressed the importance of protecting competent business actors particularly those belonging to official associations from legal uncertainty once their work has been completed according to regulations.

“Our hope is that once the work is done, there should be no more legal summons. I speak as a businessperson myself, and what I’m sharing is the reality on the ground,” he said.

As a solution, Andi advocated for closer collaboration through the use of digital technologies in the procurement process.

He believes digitalization can reduce direct interactions that may create opportunities for violations, while also increasing transparency in selecting credible vendors and business partners.

“With digitalization, we are entering a phase that inherently minimizes the risk of violations. Direct interactions with procurement committees are no longer necessary. With technology, we can identify credible vendors and strategic partners by prioritizing professionalism and integrity,” Andi concluded.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry