By Dr. Edzard Ruehe, SCP Policy Project - Indonesia

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1 The Sustainable Consumption and Production (SCP) Policy Project Indonesia GREEN PUBLIC PROCUREMENT By Dr. Edzard Ruehe, SCP Policy Project - Indonesia

2 Overview I. The Status Quo in Indonesia II. Challenges III. Recommendations of Consultant / Our Plan

3 I. What do we have? Indonesian GPP scheme and framework Vision and Policies Leadership Culture Structure System and Processes Strategy Staff capacity

4 Vision of LKPP Promoting credible public procurement toward people prosperity through implementation of sustainable public procurement.

5 Act 32 of 2009 on Environmental Protection and Management urging government and regional governments to Procure eco-friendly goods and services

6 President Regulation Number 54 year 2010 (Perpres No. 54/2010) on Public Procurement Procurement of eco-friendly goods and services and development of an environmental labelling system Paragraph 8, Articles 42 and 43, require Government and Local Government to develop and implement Economic Instrument of Environment, which includes GPP, described as procurement which provides the preference/ priority on the goods/ services which are labeled environmentally friendly

7 Presidential Regulation 70/2012 regarding Public Procurement stipulating the need to promote Green and sustainable public procurement The concept of eco-friendly in public procurement can be applied in the bidding documents in the form of certain requirements, which may lead to the use of natural resources wisely and support the preservation of the environment

8 Presidential Decree No. 80 of 2003 on Public Procurement was revised by LKPP in 2009 (2) the eco-friendly concept can be inserted in selection documents covering specific requirements of wiselyexploited natural resources and environmental preservation."

9 II. Challenges Government regulations not fully developed (issue of audits) Green criteria specification and verification system not yet established Implementation in pilot areas Up-scaling to all government institutions, provinces and districts

10 III. Recommendations / Plan It has to be established: Vision, policies, Leadership, Culture, Structure, System and Processes, Strategy, Staff capacity On national level: for (I) GPP in general and for (II) Green Product Criteria and their verification system On regional level

11 GOI Draft Regulation on Economic Environmental Instruments In the procurement of goods and services, Government and Local Governments prioritize the use of goods and services that are environmentally friendly collect data on the use of environmentally friendly goods and services report the use of the balance sheet of environmentally friendly goods and services to the Minister. The Minister shall publicize the use of environmentally friendly goods and services.

12 GPP Establishment of a Green Procurement Task Force (nationally and in regions) Vision, Policy formulated (nationally and in regions) SCP strategy developed (nationally and in regions) Processes and SOPs are established (including LCC) Awareness of procurement officers and auditors Culture developed Information on GPP disseminated Monitoring systems established

13 Green Product Specification and Verification (GPSV) for Green Public Procurement Structure of Committee on Green Product Specification and Verification (GPSV) for GPP GPSV Plenary Committee Policy Organization Finance GPSV Technical Sub- Committee Green Criteria Means for verification (standards, metrology, testing etc.) Conformity assessment & Green List GPSV IT Sub-Committee Data Management Information Management Website Maintenance & hosting (in KLH or LKPP) Working Group A: Paper Working Group B: Electronics Working Group C: Furniture Working Group D: Tourism Working Group E:...

14 Process Scheme for Green Product Specification and Verification (GPSV) for GPP I Develop Green Product Criteria for GPP II III IV V VI Describe required means for proof of Product Conformity Publish Green Product Criteria and means for proof of Product Conformity for GPP Invite producers to propose products for Verification and collect proof provided by suppliers Compare products and provided proof with criteria and conduct Verification Prepare GREEN List of all those products that fulfil criteria for GPP

15 Issues Should GPP Green Product criteria same or different to ecolabel criteria? Inclusion in e-purchasing process How stringent should be the criteria?

16 Setting and revising green product criteria for GPP over time Stringency of criteria for GPP Simple criteria (about 30% of industry at this time) More stringent criteria (about 30-40% of industry at this time Tough criteria similar to eco label Type I criteria with LCA 1 year 2-3 years 4-5 years Years Set Criteria Apply criteria Revise criteria Apply criteria Revise criteria Apply criteria

17 Thank you for your attention!

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