Indonesia government procurement spending projected at Rp929.4 trillion

Indonesia's government procurement spending for the 2026 fiscal year is projected to reach Rp929.4 trillion, representing approximately 30 percent of the total State Budget (APBN). Sarah Sadiqa, Head of the National Public Procurement Agency (LKPP), announced that transactions for domestic products reached Rp389.2 trillion as of October 13, 2026, accounting for 91.3 percent of total provider transactions.

During the Business Matching LKPP 2026 event held in Jakarta, Sadiqa emphasized the importance of involving Micro, Small, and Medium Enterprises (MSMEs) in meeting government procurement needs. The initiative aims to align government requirements with market capabilities to ensure that spending drives production, creates jobs, and strengthens national industry. The agency seeks to ensure that procurement is efficient, timely, and provides added value to the national economy.