e-Procurement Practices in Four Areas in East Java, Indonesia: Accountability, Efficiency and Barriers

Abstract

Electronic Procurement (electronic auctions) aims to cut thechain ofbureaucracyandmake public sectorspendingmoreeffectiveandefficient. Thisarticlediscusses theimplementation process of E-Procurement in four regenciesineastern Java: Sampang, Kediri, Surabaya and Jember with emphasis ontheaccountability and efficiency issues.The findings show that in 2011there were24,475auction pack ages using the mainframe of e-Procapplication with a value of more than 38 trillion Rupiah, of which4.4 trillion Rupiah of state money could be saved by the application of e-Proc mainframe. There are two main aspectst of the process of implementing e-Proc that hampered e-Procacceleration and raised the potential for corruption in the process of implementing e-Proc: the user (end user of e-Proc) and the mediator (Procurement Services Unit-ULP of eachgovernment institution). These two elements play a crucial part in determining the process of E-Proc which subscribe to the notion of accountability, efficiency, transparency and fairness. Finally, this paper provides some recommendations to improve the current practice of e-Proc in Indonesia; first, creating indicators/criteriaTransparency and accountability in the internal e-Proc implementator; Second, Injecting the value and the importance of leadership and personal integrity; Third, he need to reformulate a new system of E-Gov that compatible or supporting e-Proc; Four, Increasing the role of government monitoring unit.