E-Procurement Policy Model: Striving towards Transparency in Goods and Services Procurement in North Sumatera Indonesia

Abstract

E-procurement policy is one of public administration reform strategies in government procurement in Indonesia. The ultimate goal of the implementation of e-procurement is to realize good and clean governance in the provision of government goods and services. It is aimed at increasing transparency and accountability, extending market access and promoting healthy business competition, improving efficiency in procurement process, supporting monitoring and audit process as well as fulfilling the need to access to timely information. Study on the implementation model of e-procurement in North Sumatra is urgent and relevant considering Medan, Binjai municipality and Serdang Bedagai regency have to serve the increasing demand and needs of electronic provision of government’s goods and services in the midst of limited infrastructure and human resources, regulation and local bureaucracy dynamics.The objective of this study is to gain in-depth and comprehensive understanding of the implementation of e-procurement policy in three local governments in North Sumatra namely Medan, Binjai and Serdang Bedagai. It also aimed at analyzing factors in implementing e-procurement policy and their influences on public services in these regions.  The main goal of this study is to develop realistic e-procurement implementation policy model which is relevant and applicable to the realm of local governance in North Sumatra. This study reveals the intertwined of legal framework, infrastructures, working culture and the role of the head of local government significantly influence the transparency and performance of e-procurement implementation. Transparency creates security and confidence for e-procurement implementers since it avoids external and internal intimidation in the provision of government goods and services. On the other hand, the frequent change of regulations issued by various institutions related to the implementation of e-procurement and resistance toward the implementation of e-procurement are the most significant challenges and obstructions facing local governments in implementing e-procurement in North Sumatra.

Keywords: Policy model, Transparency, E-procurement.