RMIT, BINUS Universities Boost Transparent Procurement in Indonesia with AI

RMIT University in Australia, in partnership with Indonesia's BINUS University, is spearheading an initiative to promote transparent and sustainable public procurement through the strategic use of artificial intelligence (AI). Announced in Jakarta, the collaboration highlights the significant potential of government spending, valued in the trillions of rupiah, to drive positive economic and environmental change.

Tantia Dian Permata Indah, Director of RMIT Indonesia, emphasized that procurement is no longer a mere administrative task. "Sustainability becomes real through everyday decisions: what organizations buy, who they work with, what standards vendors must meet, and how their performance is measured," she stated. RMIT aims to empower Indonesian institutions to utilize data and AI responsibly, fostering more transparent and sustainable procurement decisions.

While AI can accelerate the evaluation of sustainability data, human oversight remains crucial for accountability. The sheer scale of government expenditure underscores procurement's strategic role. In 2025, planned government procurement is estimated at approximately Rp1.193.6 trillion, according to the Indonesian government's procurement policy agency (LKPP). This vast sum means procurement decisions can profoundly impact the economy, society, and environment, especially concerning Indonesia's over 64 million micro, small, and medium-sized enterprises (MSMEs) that contribute significantly to the GDP and employment.

A core component of this collaboration is the Sustainable Procurement Disclosure Index (SPDI), developed by RMIT researchers. This index measures how transparently companies disclose their sustainable procurement activities, referencing Global Reporting Initiative (GRI) standards. BINUS University is a key partner in expanding the SPDI's reach across the Asia-Pacific. Together, they are developing assessments for Indonesian companies and plan to release a dataset in 2026 comparing human and AI evaluations of sustainable procurement practices for 99 companies listed on the Indonesia Stock Exchange. The assessment framework utilizes 33 SPDI indicators covering governance, stakeholder engagement, environmental, social, and economic aspects.

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Sustainability becomes real through everyday decisions: what organizations buy, who they work with, what standards vendors must meet, and how their performance is measured.