Shifting public procurement towards sustainability: a comparative case study of Indonesia and Australia

Public procurement occupies a significant component of economic activity. In addition to extracting efficiencies from the private sector to deliver goods and services sourced by governments, public procurement policies play an important role in achieving sustainability goals, including social, economic and environmental outcomes. Many developing countries, such as Indonesia, face major challenges regarding transparency and accountability in government spending, which typically exceeds the average level for OECD countries. This article examines the existing regulatory framework in Indonesia and highlights key impediments to the effective implementation of sustainable public procurement policies. It provides examples from Australian best practice to advocate reforms, emphasising the importance of inter-agency coordination and a whole of government approach to leverage public procurement to promote sustainable development goals.