<![CDATA[Abstract - The oil and gas industry in Indonesia is going through a difficult period due to the drastic decline in global oil prices since the year 2014. One way to stay competitive when the low selling price is to work more efficiently and reduce operating costs. Saka Indonesia Pangkah Limited is a subsidiary of PT. Saka Energi Indonesia and its parent company, PT. Perusahaan Gas Negara. The company is operating as upstream oil and gas contractor under PSC agreement with the government of Indonesia, represented by SKKMIGAS. The efficiency discussed in this report is the streamlining and improvement of the procurement process using Lean Six Sigma concepts and ultimately supported by better electronic system implementation. The business problem was first defined by mining data from the past year as well as obtaining customer inputs. From the existing data then further research was conducted to find the root of the problem. After determining the root of the problem, the analysis is continued to make improvements to the process applied at the time. Process improvement is done by applying Lean's basic principle of prioritizing value to end users, reducing waste, flowing processes, and user-driven demand systems rather than driven by process capacity. The analysis recommends the application of electronic procurement system (e-procurement) to control the implementation of procurement process so that there is minimal variation of process which can cause inefficiency.Keywords: oil and gas, procurement, lean six sigma, e-procurement]]>
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