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The Draft Bill on Procurement of Goods and Services Will Prioritize Green Products

1 min read
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Jul 23, 2025
|
Indonesia

Impact Scale

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Medium

Affected Sectors

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Infrastructure and C......

One of the proposals in the Draft Bill on Procurement of Goods and Services (“ Procurement Draft Bill ”) is to give special attention to environmentally friendly products (green products). This reflects the government's commitment to prioritizing sustainable procurement.

"The draft includes a discussion on favoring products categorized as green products," said Hendrar Prihadi, the Head of the National Public Procurement Agency (LKPP) to Hukumonline.

These products will later have more value and may be equipped with a special label. The labeling aims to serve as a distinguishing feature and an attraction, as well as to enhance the marketability of environmentally friendly products.

The prioritization of green products is expected to drive the transformation of national industries toward a more sustainable direction, enhance competitiveness, and attract future-oriented investments.

Regarding the drafting process of this bill, Hendrar added that it is currently awaiting the appointment of the party who will lead the discussion of the regulation.

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