Local Government E-Procurement Practices in Indonesia: Accountability, Efficiency, and Barriers

Abstract

E-procurement (electronic auctions) aims to cut the chain of bureaucracy and make public sector spending more effective and efficient. This paper discusses the implementation process of e-procurement in four regencies in East Java: Sampang, Kediri, Surabaya, and Jember with emphasis on the accountability and efficiency issues. There are two main aspects to the process of implementing e-procurement that hampered e-procurement acceleration and raised the potential for corruption in the process of implementing e-procurement: the user (end user of e-procurement) and the mediator [Procurement Services Unit—Unit Layanan Pengadaan (ULP) of each government institution]. These two elements play a crucial part in the process of e-procurement that is accountable, efficient, transparent, and fair. This paper suggests three points for improving the current practice of e-procurement in Indonesia: first, creating indicators/criteria of transparency and accountability in the internal e-procurement implementator; second, injecting the value and the importance of leadership and personal integrity; third, it needs to reformulate a new system of e-government that compatible or supporting e-procurement; fourth, increasing the role of the government monitoring unit.