RESEARCH AND ANALYSIS OF PROCUREMENT MODERNIZATION IN INDONESIA

The Millennium Challenge Corporation (MCC) is an innovative and independent US foreign aid agency that is helping lead the fight against global poverty. Since 2012, the Indonesian government and the local affiliate of MCC have embarked on an ambitious Procurement Modernization (PM) project, designed to achieve government expenditure savings on procured goods and services in Indonesia while ensuring quality and efficient delivery. The Capstone team researched the various factors that have influenced procurement reform in Indonesia and determined how the PM project impacted institutional development. The team developed a customized questionnaire for the study and conducted in-person interviews with stakeholders spanning the procurement ecosystem, ranging from local procurement agents to presidential cabinet-level ministers. The team used the data to prepare a report that analyzed the various factors impacting procurement reform in Indonesia and the specific role played by the PM project. MCC plans to share the team's findings with other country teams working on procurement modernization.