E-Procurement Policy Model: Case Study of Health Agency in North Sumatra Province, Indonesia

Abstract

E-procurement policy is one form of reformation in procurement in Indonesia which aims at enhancing transparency in public procurement. E-procurement can be implemented through e-tendering and e-purchasing methods by utilizing e-catalogue. Policy implementation model was used to assist the realization of the goal of e-procurement policy. This study found three significant factors of e-procurement policy implementation model, namely legal foundation, infrastructure and human resources. This article entitled "E-procurement Policy Implementation Model: Case Study of Regency/City Health Agency, North Sumatra Province, Indonesia. Applying qualitative research method and case study approach, this study describes in detail stages of e-tendering and e-purchasing methods and transparency. It also explains how this e-procurement policy implementation method works and its relation with transparency in public procurement at Health Agency at Medan City, Binjai City and Serdang Bedagai Regency.In-depth interview, observation, document and literature analysis were utilised as interrelated data gathering techniques. In-depth interviews were conducted with head of Development Administration/LPSE of Medan City, Binjai City and Serdang Bedagai and Working Group of Procurement Service Unit (ULP), Commitment Authorities, Procurement Official and business as providers of e-procurement. This study also applies observation technique on Electronic Procurement Services (LPSE) website to examine transparency of data, process and decision of e-procurement activities.This study reveals e-purchasing methods is more interested for e-procurement implementers compare to e-tendering at all research sites. Security resulted from the utilization of e-catalogue is one of the reason for preference in using this method. This study also finds out that the three factors of e-procurement implementation model as mentioned previously were yet to function optimally causing speculations in e-procurement activities which usually addressed by providers to e-procurement implementers, and diverse understanding and interpretation on transparency between implementers and providers. Observation on LPSE websites reveals data transparency has been satisfactory while process and decision transparency are yet to be satisfactory.

Keywords: Policy model, E-procurement, Public service, Transparency.