This brief “Green Public Procurement in Indonesia” by The International Institute for Sustainable Development explores the current state of green public procurement (GPP) in Indonesia and provides recommendations for advancing it. It is based on a desk review of existing literature, policy documents, and prior studies on GPP both within Indonesia and in comparable contexts. Public procurement in Indonesia accounts for a substantial portion of the government’s spending—over 45% in 2022. This corresponds to approximately 6.6% of the total nominal GDP, highlighting the potential of GPP to drive significant environmental, social, and economic benefits. GPP is already anchored in key national plans and strategies as a tool for fostering a sustainable transformation of the economy.
Indonesia has also developed a framework of laws and regulations to support GPP. While there is a growing awareness and adoption of GPP in Indonesia, challenges remain. These include a limited understanding of GPP among procurement officials and industries, weak government support, the higher costs associated with green products, and a lack of incentive schemes to attract suppliers. This brief provides several recommendations to advance GPP in Indonesia, including the introduction of easy-to-use tools, enhancing training and capacity-building initiatives, developing comprehensive support platforms, providing both financial and non-financial incentives, and improving monitoring of both GPP outputs and outcomes.
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