LKPP Drafts Regulation on Sustainable Government Procurement of Goods and Services

The National Public Procurement Agency (“LKPP”) is currently drafting an implementing regulation for Presidential Regulation No. 46 of 2025 on the Second Amendment to Presidential Regulation No. 16 of 2018 on Government Procurement of Goods/Services (“Perpres 46/2025”), which will serve as a guideline for the implementation of sustainable government procurement of goods and services. The regulation aims to promote the use of environmentally friendly products while supporting the transformation toward green industries.

“We are formulating an implementing policy for Perpres 46/2025 in the form of an LKPP Regulation, which is currently undergoing the harmonization process,” stated Aris Supriyanto, Deputy for Strategy and Policy Development at LKPP.

The Draft Regulation will be accompanied by practical guidelines for procurement officials in preparing tender documents that incorporate sustainability criteria. In addition, the regulation will govern the use of more comprehensive evaluation instruments, including the merit point system and life-cycle cost evaluation methods.

Through these instruments, tender evaluations will consider not only bid prices but also the environmental impacts of the products offered. “Therefore, even if a product is offered at a higher price, it may receive a higher evaluation score if it provides greater environmental benefits, potentially allowing it to win the tender,” Aris explained.