Comparative Analysis of Public Procurement Process before and after E-procurement Implementation in Magelang City Government

Sadono, Madu (2017) Comparative Analysis of Public Procurement Process before and after E-procurement Implementation in Magelang City Government. Magister thesis, Universitas Brawijaya.

Abstract

Since 2008, the implementation of e-procurement is considered more benefited in aspects of efficiency. This thesis investigates cost efficiency, time efficiency and other aspect of efficiency in comparison with conventional procurement. This comparative study is useful to explain the procurement process before and after the implementation of e-procurement. Efforts to improve procurement innovation in Indonesia began by establishing the National Procurement Agency (LKPP). LKPP makes public procurement regulations through the issuance of Presidential Decree No.80/2003 and Presidential Regulation No. 54/2010. The analysis compares ten specific case studies of projects. Out of the ten projects, eight are e-procurement projects, and two are conventional procurement projects. All the projects were selected on one condition that their costs exceeded 200 million rupiahs. Cost efficiency in procurement is estimated from the difference between the bidding price and the procurement budget. In the conventional procurement, cost efficiency is recorded 10.83%. In the e-procurement, cost efficiency is recorded 12.60%. In more detail, the cost of an electronic procurement is more efficient than conventional procurement. Time efficiency is seen from a comparison of time before and after the procurement of e-procurement. In the conventional procurement, the average time allocation is 51 days. In the e-procurement, the average time allocation is 40 days. In Magelang City, that the e-procurement is more efficient than conventional procurement. Implementation of e-procurement shapes more possitive perception towards procurement efficiency. The more efficient the procurement will have an impact on economic development in Magelang City. The lack of human resources in the ULP working group had negative impacts in the length of the procurement process. Working group members need to be trained to implement e-procurement. This training is useful to improve quality of procurement committees. The negative side of e-procurement in Indonesia is an information system that has not been fully automated. This process can allow room for fraud in procurement. The limitation of this study is the use of construction projects only at a cost more than 200 million rupiahs. The sample were taken from an average of two or three construction projects annually. For further studies, it is recommended to use annual procurement goods and services projects. It would also be useful to know the overall procurement objectives, not only in terms of efficiency but also the overall procurement objectives. Comparative analysis with other local governments also needs to be undertaken to determine the benefits of e-procurement implementation in Magelang City.

Item Type: Thesis (Magister)
Identification Number: TES/352.53/SAD/c/2017/041712443
Uncontrolled Keywords: GOVERNMENT PURCHASING, LOCAL GOVERNMENT--PURCHASING
Subjects: 300 Social sciences > 352 General considerations of public administration > 352.5 Property administration and related topics > 352.53 Contracts and procurement
Divisions: S2/S3 > Magister Ilmu Administrasi Publik, Fakultas Ilmu Administrasi
Depositing User: Yusuf Dwi N.
Date Deposited: 14 Aug 2019 03:42
Last Modified: 14 Aug 2019 03:42
URI: http://repository.ub.ac.id/id/eprint/171368
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