The origins of the National Public Procurement Agency (NPPA) came from a second echelon working unit called the Center for Public Procurement Policy Development (PPKPBJ in Indonesian). Formed in 2005, this unit is taksed to formulate government procurement policy and regulations; give public procurement-related technical guidance and advocacy; as well as facilitate the conduct of the public procurement specialist certification examinations.
With the passion to create a better Indonesia, hope surfaced on developing a more effective and efficient procurement process from state and regional budgets (APBN/APBD) adhering to the applications of sound competition that is transparent, open and equitable to all parties as well as being accountable.
Taking to consideration of the said ideals, therefore a procurement system that encompass clear regulatory and procedural aspects, better institutional framework, competent human resources, accountable and transparent business processes, as well as litigation handling that respects the principles of justice needs to be developed.
With regard to a better institutional framework, therefore there needs to be an institution that has the authority to formulate strategic planning and development, policy-making, as well as legal provisions that regulate public procurement that is adaptable to change.
In harmony as part of the global community, therefore the existence of such an institution would represent Indonesia in the international forums, at par with its counterparts already existing in several countries such as the Office of Federal Procurement Policy (OFPP) in the United States, Office of Government Commerce (OGC) di the United Kingdom, Government Procurement Policy Board (GPPB) in the Philippines, Public Procurement Policy Office (PPPO) in Poland, and the Public Procurement Service (PPS) in the Republic of Korea.
Thus, giving thanks to God Almighty, on 6 December 2007, on 6 December 2007, the National Public Procurement Agency (NPPA) otherwise known in the Indonesian acronym of LKPP, was established following the Presidential Regulation No.106 of the year 2007.
In its practice, the NPPA is designated as a non-ministerial government agency and has a reporting duty directly to the President of the Republic of Indonesia. In conducting its function and duties, the NPPA is under the coordination of the State Minister for the National Development Planning/Head of the National Development Planning Agency (Bappenas).
Aside from implementing programs inline with its vision and mission as well as the strategic aims and objectives, the NPPA is also responsible to achieve national development targets as mandated in the Mid-term national development plan (RPJMN) 2010-2014, prioritizing in the field of bureaucratic apparatus reform, improvement of good government that is free of corruption, collusion, and nepotism. Specifically, the agency functions and authorities are directed at creating good governance in the public procurement processes.
