Indonesia to centralise state procurement under single agency

President Prabowo has announced that Indonesia will consolidate all government procurement processes under a single, centralised agency. The move, revealed during his address to parliament on Friday, is part of a broader push to tighten fiscal discipline and improve operational efficiency across state institutions.

The decision marks a significant administrative shift, aiming to reduce redundancies and create a more streamlined purchasing framework for public goods and services. By centralising procurement, the government expects to gain better oversight of spending and eliminate fragmented practices that have historically led to inefficiencies.

Officials indicated that the reform is designed to strengthen accountability in how public funds are allocated and spent. The new structure is expected to standardise procedures, making it easier to monitor contracts and ensure value for money in state purchases.

While specific implementation timelines and the exact scope of the agency's mandate were not detailed in the announcement, the policy signals a clear intent by the administration to modernise state financial management. The move is seen as a key component of Prabowo's agenda to reinforce fiscal prudence in government operations.