"This chapter describes the underlying problems of Indonesian major projects development; particularly those funded by the World Bank, because they represent large commitments of national resources, and because most of them grow in cost experience schedule delay and change in scope of work after they are initiated. The present study attempt is to find resolution to these emerging problems by approaching each major project development as an acquisition process.
The objective of this study is to examine the question whether the Government of Indonesia's project management could be significantly strengthened through the application of the principles of major systems acquisition set forth in the United States Office of Management and Budget, known as the OMB Circular No. A-109. Justifying this approach, the author sets forth his reasoning; he then determines the scope of the effort, appraises framework and policy issues, explicates methodological options, and accesses the limitation of the research. Finally, the author analyzes the potential contributions of this application of the OMB model to a broader context of the Government of Indonesia's procurement management.
By offering an integrated approach to major systems acquisition, or major projects development, the author hopes to develop principles and guidelines for improvements in procurement management that will effect economies in the Government of Indonesia's investment of its scarce financial resources in Repelita V. i.e. the fifth Five Year Plan, initiated April 1, 1989."
