Indonesia’s formal application to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in late 2024 marks a milestone in the country’s trade diplomacy. Policymakers have hailed it as a pathway to boost exports, attract investment and deepen economic ties with key global markets.
But behind the optimistic headlines lies a more sobering question: Is Indonesia’s domestic governance architecture, particularly in public procurement, ready to meet the high standards that the CPTPP demands?
For years, public procurement has served both as a cornerstone of economic development and a hot spot for corruption. It governs over 30 percent of the national budget and shapes everything from road construction to health service delivery. Despite reform milestones such as the establishment of the National Public Procurement Agency (LKPP) and the rollout of e-procurement systems, the sector remains plagued by collusion, opacity and weak enforcement.
Joining the CPTPP could help accelerate much-needed change, but only if Indonesia treats the agreement as a lever for structural reform, not a shortcut to foreign markets. At the core of this challenge lies the pending public procurement bill, which has been included in the priority list of the National Legislation Program (Prolegnas). Far from a legislative formality, this bill will form the legal foundation for determining whether Indonesia can truly meet its CPTPP commitments, and more importantly, whether it can restore public trust in the management of state funds.
To succeed, the bill must go beyond procedural efficiency and administrative tweaks. It must embed enforceable principles of transparency, independent oversight and civic participation. A key priority is mandating proactive disclosure of procurement information, not just tender announcements, but comprehensive, real-time data on contracts, implementation, amendments and performance evaluations. By adopting open contracting standards and digital transparency tools, Indonesia can empower oversight bodies, journalists and citizens to track the flow of public funds.
Technology alone will not solve governance failures, but without transparency by design, the CPTPP’s procurement chapter risks becoming an empty formality. Equally vital is the establishment of robust, impartial oversight mechanisms. Current complaint-handling systems remain hampered by fragmented mandates, political interference and limited enforcement power. The new law must clearly define chains of accountability and empower independent institutions to audit, investigate and sanction misconduct, especially in high-risk sectors such as infrastructure, defense and energy.
It must also protect whistleblowers and shield procurement processes from elite capture. In many corruption cases, whistleblowers face prosecution for alleged defamation or even death threats. Often overlooked, yet essential, is the role of civil society. Indonesian NGOs, investigative journalists and community monitors have played a pivotal role in exposing procurement abuses, from inflated COVID-19 relief contracts to manipulated regional tenders. Yet access to information remains restricted, and those who speak out often face threats or retaliation. Real reform must guarantee the right to public data and formally institutionalize civil society’s role in planning, monitoring and verifying public contracts.
Procurement must no longer be treated as an internal administrative matter, it must become a democratic space for shared accountability. Indonesia can learn valuable lessons from its ASEAN neighbors. When Malaysia ratified the CPTPP in 2022, it safeguarded key domestic policies such as bumiputera (native) preferences while also undertaking regulatory improvements to meet transparency and access standards. Singapore, likewise, demonstrates how strong institutions and centralized, real-time disclosure can make public procurement both efficient and trusted.
These examples show that aligning with high-standard trade agreements does not require abandoning national priorities, as long as institutional reforms are carried out in parallel. This reinforces a broader truth: international trade agreements like the CPTPP are not isolated instruments. Their success depends heavily on the strength of domestic governance. Indonesia’s ongoing negotiations in other trade frameworks, such as the European Union-Indonesia Comprehensive Economic Partnership Agreement (CEPA) and the European Free Trade Association-Indonesia CEPA, raise similar concerns. Provisions related to procurement, investor protections and dispute resolution could impose binding legal commitments that clash with underdeveloped systems if structural reforms are not in place.
In this context, the CPTPP should be understood not only as an economic agreement, but also as a governance benchmark. The absence of institutional readiness risks triggering domestic resistance, inviting international scrutiny and increasing exposure to investor-state disputes. More seriously, it could reinforce the very inefficiencies and vulnerabilities the agreement was designed to prevent. Indonesia stands at a pivotal moment. The CPTPP is more than just a tool for expanding market access. It presents a real opportunity to transform how the state manages public resources.
That opportunity will only materialize if the public procurement bill sets a new standard, one that is ambitious, enforceable and inclusive. The law must codify transparency, strengthen independent institutions and create space for civil society to participate meaningfully in oversight. Ultimately, procurement reform is not only about improving procedures. It is about rebuilding public trust. If done well, CPTPP accession could mark a turning point in democratic accountability and institutional integrity. If neglected, it risks becoming just another treaty with grand ambitions but little impact on the ground.
This article was published in thejakartapost.com on April 17, 2025 Click to read: https://www.thejakartapost.com/opinion/2025/04/17/indonesias-cptpp-bid-must-begin-with-procurement-reform.html.
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