Sustainable Procurement Project

Sustainable Procurement Project

In 2011, the Millennium Challenge Corporation agreed to provide funding to the Government of Indonesia (GoI) for various projects, including the Procurement Modernisation Project (PMP) that ran from 2012 to 2018; with the objective of reducing poverty through economic growth. This project was carried out through the Millennium Challenge Account Indonesia and the National Public Procurement agency (LKPP); with the intention to improve the procurement function in Indonesia through three key projects – one of which was the Sustainable Procurement Project (SPP). Charles Kendall Australia was engaged to provide specialist advisory and project management services to achieve the objectives of PMP and sustain long term success.

The Challenge

  • Design and cost a sustainable procurement system, aimed at promoting the use of SPP in public purchases.
  • Provide a coordinated approach to SPP across the GoI and private sector through the establishment of a procedural framework for SPP, where the existing structure was decentralised and low in maturity, lacking in established frameworks and unfamiliar with key concepts.

Our Approach

  • Coordinate a research plan to identify and understand readiness for adoption of a structured and policy-driven approach to sustainable procurement in six regions.
  • Research and evaluate existing sustainable procurement projects, initiatives, training/ competency and best practices in GoI and other ASEAN nations.
  • Collect, consolidate research, and determine common issues, risks and constraints affecting the implementation of SPP.
  • Engage stakeholders to identify needs, capacity and capability of GoI ministries.
  • Utilise data, SPP literature and stakeholder engagement to develop recommendations and an effective plan of action to ensure a sustainable implementation of SPP across the GoI.
  • Develop an SPP training package to increase SPP competencies and capabilities.


CKA developed a comprehensive report that included:

  • Thirteen issues identified as a source of stagnation for the development of SPP in Indonesia.
  • Desired state and recommendations to solve all thirteen issues.
  • A comprehensive and attainable sustainable procurement implementation strategy.
  • A detailed 5-year action plan to undergo SPP improvement activities.
  • A sustainable procurement training package, to increase SPP capabilities among staff.