RMIT University brings AI and sustainable procurement expertise to Indonesia

RMIT University is introducing its global expertise in artificial intelligence (AI), sustainable procurement, and regenerative business practices to Indonesia. This initiative arrives as organizations face increasing pressure to translate sustainability commitments into everyday purchasing and vendor management decisions. The substantial value of government spending highlights procurement's strategic potential to drive a greener and more inclusive economy. By 2025, the total planned procurement for ministries, institutions, and regional governments is expected to reach approximately Rp 1.193.6 trillion, according to data from the Government Procurement Policy Institute (LKPP). Such scale means that decisions on goods and services, vendor selection, and applied standards can significantly impact the economy, society, and environment. Indonesia also boasts over 64 million micro, small, and medium-sized enterprises (MSMEs) that contribute over 60 percent to the gross domestic product and employ nearly 97 percent of the workforce. Therefore, changes in procurement practices can have a wide-reaching impact on businesses, workers, and the public. In collaboration with BINUS University through its Center of Excellence in Sustainability, the RMIT Southeast Asia Hub will convene business leaders, procurement professionals, and policymakers. They will discuss leveraging AI, data transparency, and regenerative strategies to enhance vendor performance, manage risks, and strengthen supply chain resilience. A key instrument in this initiative is the Sustainable Procurement Disclosure Index, developed by RMIT supply chain researchers. This index helps organizations assess the transparency and the economic, social, and environmental impact of their procurement practices. The initiative will also explore how AI can be used for vendor evaluation, risk identification, and supporting sustainability reporting, while maintaining human oversight and accountability. "Procurement needs to be viewed as a strategic instrument in driving Indonesia's sustainability transition," said Tantia Dian Permata Indah, RMIT Director Indonesia.

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Procurement needs to be viewed as a strategic instrument in driving Indonesia's sustainability transition.