Public procurement is the purchasing process that is made by government side.

The demand is
triggered from government’s country development projects. Public procurement can be both
service procurement and material procurement from local or foreign market. There are many
large and SME business organizations which can handle most of the public procurement in the
local market. Purchasing material and service from other foreign country is not a good option.
Because the basic theory of economic growth or development is the export should be always
greater than import for economic development of a country. The government projects are very
large demand and spending power. If the government use large amount of spending on foreign
import products, local business organization cannot take advantage from public procurement
and a lot of budget will be flow to foreign country.
Government can be use public procurement as an economic development tool. We can
separate local business organization into two kinds, large business organization and SMEs.
Large organization mostly won the public procurement tender because of their strong financial
investment, past track record and reputation. Economic development of a country is not only
depending on large company but also on SMEs especially. Developing SMEs is a sign of
economic growth. If the government tend to use public procurement tool for economic
development, they should change and adapt their tendering policies also for SMEs. ( Not
Finished Yet)