Procurement of goods and services in Indonesia refers to the process through which government agencies, state-owned enterprises, and other public institutions acquire goods, services, or works from external suppliers or contractors. The procurement process in Indonesia is governed by various laws and regulations to ensure transparency, fairness, and accountability in the expenditure of public funds. The key legislation regulating procurement in Indonesia is Law No. 11 of 2020 on Job Creation (also known as the Omnibus Law).

1. Planning: The procuring entity identifies its needs, determines the scope of work, and prepares a procurement plan. This plan outlines the goods or services required, the estimated budget, and the timeline for the procurement process.

2. Prequalification (if applicable): For complex or high-value projects, a prequalification process may be conducted to shortlist potential suppliers or contractors based on their qualifications, experience, and financial capacity.

3. Procurement Method: The procuring entity selects the appropriate procurement method based on the type and value of the procurement. Common procurement methods in Indonesia include open tender, limited tender, direct appointment, and e-procurement.

4. Tender Announcement: If an open tender is chosen, the procuring entity publishes a tender announcement, inviting eligible suppliers or contractors to submit their bids.

5. Bid Submission: Interested suppliers or contractors submit their bids or proposals in response to the tender announcement. The bids should comply with the requirements set out in the tender documents.

6. Bid Evaluation: A procurement committee evaluates the submitted bids based on predefined criteria, which may include technical capabilities, pricing, past performance, and compliance with regulatory requirements.

7. Contract Award: The successful bidder is awarded the contract, and the parties enter into an agreement outlining the terms and conditions of the procurement.

8. Contract Implementation: The procuring entity oversees the implementation of the contract, ensuring that the goods or services are delivered according to the agreed-upon specifications and schedule.

9. Payment and Monitoring: The procuring entity makes payments to the supplier or contractor based on the terms of the contract. Regular monitoring and evaluation are conducted to ensure the project progresses as planned.

10. Dispute Resolution: In case of disputes or disagreements during the procurement process or contract implementation, mechanisms for dispute resolution are available, including administrative review, mediation, or arbitration.

    It's important to note that public procurement in Indonesia is subject to strict anti-corruption measures and regulations to prevent unethical practices. Additionally, the government has been making efforts to digitalize and improve the efficiency of the procurement process through the use of e-procurement platforms.