Is Indonesia Ready for a Sustainable Procurement Revolution in Goods and Services?

Abstract

In the globalisation era, issues pertaining to sustainable development have assumed a position of paramount importance in the realm of international development. This phenomenon is further accentuated by the United Nations' establishment of the Sustainable Development Goals, which mandate that the developmental trajectories of nations worldwide must be aligned with the tenets of the SDGs. The ramifications of this directive extend to all facets of society, including the acquisition of goods and services. The present article thus seeks to undertake a comprehensive analysis of the procurement of goods and services based on sustainable principles within the Indonesian context. The present study adopts a dual approach, encompassing both a legal research methodology and a conceptual and statute approach. Sustainable procurement is the process of acquiring goods and services that take into account environmental, social, and governance factors. Its goal is to provide a positive impact on the environment, society, and economy. The benefits of sustainable procurement include enhancing reputation, cost savings, improving efficiency, reducing risks, increasing resilience, promoting innovation, and fostering growth. To implement sustainable procurement, organizations can use ISO 20400, an international standard that provides guidelines for developing a sustainable purchasing approach. Procurement of goods/services is essential for government activities, both at the central and regional levels, according to Presidential Regulation Number 16 of 2018 regarding Procurement of Goods/Services for the public The internalization process of sustainable procurement aspects includes implementing environmentally friendly procurement at every stage of procuring goods/services. Support for the sustainability of public procurement requires a rational and instrumental approach towards the community.