Preventing Maladministration in Indonesian Public Procurement: A Good Public Procurement Law Approach and Comparison with the Netherlands and the United Kingdom

Abstract

The aim of this book is to make recommendations concerning the improvement of public procurement law in Indonesia. The author identifies five fundamental problems commonly arising in the pre-contractual phase in Indonesia: the procurement document may be prepared in a way that favours certain bidders, but it is questionable whether legal procedure to review the procurement document is available; corruption may occur within procuring entities which may, in turn, lead to distrust towards the entities regarding its impartiality in relation to the handling of the administrative appeal; the reasons for awarding the contract may not be transparent; the procedures for seeking redress are erratic; finally, the availability of remedies is uncertain. The author adopts two methods for the pursuit of his research. First, three principles of good governance are discussed (equality, transparency and accountability), and five principles of good public procurement are identified. These five principles are outlined as: equal opportunity, equal treatment, transparency including its limitations to protect commercially sensitive information, clarity about the forum for redress, and the availability of effective remedies. Second, a comparative methodology is undertaken, examining the law relating to public procurement procedures in the Netherlands and the United Kingdom. From these approaches, the author draws out recommendations for the legislature, the administration and the judiciary in Indonesia. Although this book concentrates on the case of Indonesia, ideas brought forth in the discussion may be applicable and useful to other countries sharing similar issues.