Making e-procurement work in a decentralized procurement system

Abstract

If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation.*Related content and download information correct at time of download. Purpose -The purpose of this paper is to investigate the implementation of initiative e-procurement in decentralized system on Indonesia's local government system. Design/methodology/approach -The authors combine quantitative and qualitative methods. The central finding of this research is that human resources are the pivotal factors that determine the performance of local e-procurement in three cities. This research focusses on three local governments in Indonesia -Yogyakarta City, Tangerang City, and Kutaikartanegara Regency. Findings -The central finding of this research is that human resources are the pivotal factors that determine the performance of local e-procurement in three cities. However, Tangerang City is going institutionalization phase in e-procurement initiative to ensure its sound local regulation.Research limitations/implications -There are several limitations to this study including the recent nature of decentralized procurement in Indonesia, limited standardized and disaggregated data on local government procurement expenditures and performance. Practical implications -The study recommends that human resources management in procurement needs to be addressed by both local and central government.Originality/value -e-Procurement is an important instrument for preventing corruption in goods and services procurement. Indonesia has been implementing an e-procurement policy since 2008 based on a Presidential Decree. The president has issued annual orders (presidential instructions), and all central ministries and local governments have been required to comply with them to obtain their budget through the e-procurement system. However, as of 2012 fiscal year, only around 10.26 percent of the central government institution procurement budget and 10 percent of the local government procurement budget in Indonesia went through the e-procurement system, with wide variations among cities.

Adopting Organizational Structuring for ICT-enabled Government Transformation: Perspectives of City Government Employees in Indonesia and the Philippines

“…In transforming e-government, organizational structuring must be done in the following ways: establishment of ICT department; institutionalizing professional leadership and management of ICT through Chief Information Officer/Chief Data Officer; shifting of back-office activities to front-office; and vigorous human resource training and re-tooling ([23], [24], [25], [26], [27], [28], [29]). …”

University Procurement Officers’ Use of Technology When Seeking Information

“…Similar to Neupane et al (2012) and Nurmandi and Kim (2015) public institutions must follow strict regulations to prevent misuse of public funds and corruption. These regulations frequently require very specific online connections and use of software that are possible only on desktop computers, which reduces the advantages of the portable devices to the procurement officers.…”

“…This is mostly due to the need of reducing corruption and controlling public spending (e.g., Neupane, Soar, Vaidya, & Yong, 2012;Nurmandi & Kim, 2015). For example, Balaeva and Yakovlev (2015) find that in Voronezh State University small-sized procurement contracts come with a 19.1 percent (of the contract value) price tag.…”

The Implementation of E-procurement System: Indonesia Evidence

“…E-procurement is also described as a procurement automation process which improves competition among the suppliers or providers. The implementation of e-procurement can improve the effectiveness and efficiency over traditional process [4]. E-procurement is also implemented to reduce the opportunity of occurrence of fraud in government area [3].…”

“…The potential benefits of e-procurement are greater transparency and improve accountability [2] and reducing corruption risks [3]. The Indonesian government in 2008 has created INAPROC (Indonesia Procurement), a national e-procurement system to procure and deliver goods and services electronically [4]. Then, Presidential Regulation No 54/2010 has been issued to regulate procurement processes are executed electronically.…”