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E-PROCUREMENT SYSTEM TECHNOLOGY 
(AN ANALYSIS IN ELECTRONIC PROCUREMENT 
SERVICE UNIT (LPSE) OF KEPULAUAN RIAU 
PROVINCE) 
By. 
Rendra Setyadiharja, Shahril Budiman, Zamzami A.Karim, Raja Abumanshur 
Matridi, Junriana, Ferizone
INTRODUCTION 
According to a survey conducted by Indonesian Procurement Watch (IPW) which was 
presented to the Corruption Eradication Commission (KPK) in March 2011, it was found that 
89% of companies that provide governmental goods and services had committed bidding 
bribes (Kredibel, 2011). Furthermore, 92% of those provider companies also admitted that 
they had tried to conduct bribery practices during the bidding process (Kredibel, 2011). This 
survey involved 792 provider companies in Jakarta, Bekasi, Tangerang, Depok and Bogor as 
respondents and the result has been published on procurement magazine Kredibel 1st 
edition in 2011. 
The data shows that 80% out of 55,000 denunciations to KPK are cases related to 
procurement of goods and services (Kredibel, 2011). Meanwhile, Indonesian Corruption 
Watch (ICW) reports that 43 cases of procurements indicated with corruption are cases 
where direct appointment usually takes place (Purwanto et al, 2008). 
Moreover, ICW also reports that there are other corruption practices within procurement 
process which include 48 cases of mark-up, 50 cases of black-mail, 1 case of contract 
abuse and 8 cases of fake project (Purwanto et al, 2008).
INTRODUCTION 
• The Indonesian government’s efforts to minimize corruption practices in 
procurement process are channeled through a presidential decree 
number 54/2010. This decree suggests that e-procurement has been an 
obligatory for all government offices since 2012. Furthermore, as quoted 
from the Kredibel magazine in 2012, the Indonesian Government has issued 
presidential instruction number 17/2011 concerning corruption eradication. 
Such efforts become more important and necessary in 2012 because the 
national budget in that year had stated that at least 75% and 40 % of total 
expenditure allocated for procurement of goods and services in ministries 
and regional governments respectively must apply the e-procurement 
procedures
MAIN PROBLEM ON E-PROCUREMENT 
TECHNOLOGY IN KEPULAUAN RIAU PROVINCE
RESEARCH QUESTION ? 
1.How the implementation 
of e-procurement system 
that had been adopted 
by Kepulauan Riau 
Province ? 
2.How the influence of 
political process to the 
implementation of e-procurement 
in Kepulauan 
Riau Province ?
THEORETICAL 
FRAMEWORK 
E-procurement is a conceptual strand of e-government. 
UNDP (Sugandi, 2011) defines E-Gov as the “continuous 
use of information technology to access and or to deliver 
services provided by the government to its citizens. The use 
of this technology is to overcome the limitation of physical 
movement of information through papers of which 
traditional system has been based on”.
THEORETICAL FRAMEWORK 
Concept of the Implementation of E-Procurement System (Thai, 
2011)
THEORETICAL FRAMEWORK 
Concept of the Political Process influence Implementation of E-Procurement 
System (Thai, 2011)
THEORETICAL FRAMEWORK 
Concept of the Political Process influence Implementation of E-Procurement 
System (Thai, 2011)
THE IMPLEMENTATION OF PROCUREMENT 
SYSTEM IN KEPULAUAN RIAU PROVINCE 
Factors Influence the implementation after the data process 
Explanation: 
1.Clarity of E-Procurement 
Planning 
2.Regulations 
3.Human Resources 
4.Clear Objectives 
and Goals 
5.Infrastructures and 
Networks 
6.Type of Website 
System 
7.Efficiency and 
Effectiveness
THE IMPLEMENTATION OF PROCUREMENT 
SYSTEM IN KEPULAUAN RIAU PROVINCE 
Effectiveness Index of Variable and Effectiveness of Implementation 
No Variable Index 
1 Clear Objectives and Goals 3,33 
2 Type of Website System 3,33 
3 Regulations 3,31 
4 Clarity of E-Procurement Planning 3,28 
5 Human Resources 3,27 
6 Efficiency and Effectiveness 3,25 
7 Infrastructures and Networks 3,11 
The Effectiveness of The Implementation Of E-procurement 
Techonology At LPSE Kepulauan Riau 
Province 
3,27
Legend: 
1.Year 2008 
2.Year 2009 
3.Year 2010 
4.Year 2011 
5.Year 2012
Legend: 
1.Year 2008 
2.Year 2009 
3.Year 2010 
4.Year 2011 
5.Year 2012
Legend: 
1.Year 2008 
2.Year 2009 
3.Year 2010 
4.Year 2011 
5.Year 2012
PERCENTAGE OF TYPES IN PROCUREMENT IN 2012 LPSE 
CONTRUCTIONS 
48% 
GOODS 
30% 
OTHER SERVICES 
12% 
CONSULTATIONS 
10% 
KEPULAUAN RIAU
Keterangan: 
1.Tahun 2008 
2.Tahun 2009 
3.Tahun 2010 
4.Tahun 2011 
5.Tahun 2012
1; 498 
Legend: 
1.Kepulauan Riau Province 
2.Outsides Kepulauan Riau Province 
2; 110 
600 
500 
400 
300 
200 
100 
0 
TOTAL PROVIDER OF GOODS / SERVICES COMPANY 
BASED IN THE AREA OF ORIGIN IN 2012 
1 2
THE INFLUENCES OF POLITICAL 
PROCESS TO THE E-PROCUREMENT 
TECHNOLOGY IN KEPULAUAN RIAU
THE INFLUENCES OF POLITICAL 
PROCESS TO THE E-PROCUREMENT 
TECHNOLOGY IN KEPULAUAN RIAU
CONCLUTION 
• Implementation of e-procurement system on LPSE Kepulauan Riau Province already 
worked with very effective based on this research result then the index effectiveness 
level implementation of e-procurement system get value 3,27. It shows that in terms 
of planning, objectives, regulatory, human resources, infrastructure capable of 
supporting factors for effectiveness of implementation e-procurement in Kepulauan 
Riau Province. 
• The influences of politic process against to implementation of e-procurement 
system was be affected strongly. Total value of politic process impact against to 
implementation of e-procurement system is as big as 0,9740 or 97,40% and as big as 
0,0260 or 2,60% impacted by another variable. Further conclusioning that politic 
process had very strong impact against to implementation of e-procurement 
system on LPSE Kepulauan Riau Province. Thus, to create an e-procurement 
implementation effectively be followed by a strong political will, in order to support 
the implementation of e-procurement systems are then able to reduce corruption 
and improve quality in the procurement of goods and services.
Ppt id 141 IICIES

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Ppt id 141 IICIES

  • 1. E-PROCUREMENT SYSTEM TECHNOLOGY (AN ANALYSIS IN ELECTRONIC PROCUREMENT SERVICE UNIT (LPSE) OF KEPULAUAN RIAU PROVINCE) By. Rendra Setyadiharja, Shahril Budiman, Zamzami A.Karim, Raja Abumanshur Matridi, Junriana, Ferizone
  • 2. INTRODUCTION According to a survey conducted by Indonesian Procurement Watch (IPW) which was presented to the Corruption Eradication Commission (KPK) in March 2011, it was found that 89% of companies that provide governmental goods and services had committed bidding bribes (Kredibel, 2011). Furthermore, 92% of those provider companies also admitted that they had tried to conduct bribery practices during the bidding process (Kredibel, 2011). This survey involved 792 provider companies in Jakarta, Bekasi, Tangerang, Depok and Bogor as respondents and the result has been published on procurement magazine Kredibel 1st edition in 2011. The data shows that 80% out of 55,000 denunciations to KPK are cases related to procurement of goods and services (Kredibel, 2011). Meanwhile, Indonesian Corruption Watch (ICW) reports that 43 cases of procurements indicated with corruption are cases where direct appointment usually takes place (Purwanto et al, 2008). Moreover, ICW also reports that there are other corruption practices within procurement process which include 48 cases of mark-up, 50 cases of black-mail, 1 case of contract abuse and 8 cases of fake project (Purwanto et al, 2008).
  • 3. INTRODUCTION • The Indonesian government’s efforts to minimize corruption practices in procurement process are channeled through a presidential decree number 54/2010. This decree suggests that e-procurement has been an obligatory for all government offices since 2012. Furthermore, as quoted from the Kredibel magazine in 2012, the Indonesian Government has issued presidential instruction number 17/2011 concerning corruption eradication. Such efforts become more important and necessary in 2012 because the national budget in that year had stated that at least 75% and 40 % of total expenditure allocated for procurement of goods and services in ministries and regional governments respectively must apply the e-procurement procedures
  • 4. MAIN PROBLEM ON E-PROCUREMENT TECHNOLOGY IN KEPULAUAN RIAU PROVINCE
  • 5. RESEARCH QUESTION ? 1.How the implementation of e-procurement system that had been adopted by Kepulauan Riau Province ? 2.How the influence of political process to the implementation of e-procurement in Kepulauan Riau Province ?
  • 6. THEORETICAL FRAMEWORK E-procurement is a conceptual strand of e-government. UNDP (Sugandi, 2011) defines E-Gov as the “continuous use of information technology to access and or to deliver services provided by the government to its citizens. The use of this technology is to overcome the limitation of physical movement of information through papers of which traditional system has been based on”.
  • 7. THEORETICAL FRAMEWORK Concept of the Implementation of E-Procurement System (Thai, 2011)
  • 8. THEORETICAL FRAMEWORK Concept of the Political Process influence Implementation of E-Procurement System (Thai, 2011)
  • 9. THEORETICAL FRAMEWORK Concept of the Political Process influence Implementation of E-Procurement System (Thai, 2011)
  • 10. THE IMPLEMENTATION OF PROCUREMENT SYSTEM IN KEPULAUAN RIAU PROVINCE Factors Influence the implementation after the data process Explanation: 1.Clarity of E-Procurement Planning 2.Regulations 3.Human Resources 4.Clear Objectives and Goals 5.Infrastructures and Networks 6.Type of Website System 7.Efficiency and Effectiveness
  • 11. THE IMPLEMENTATION OF PROCUREMENT SYSTEM IN KEPULAUAN RIAU PROVINCE Effectiveness Index of Variable and Effectiveness of Implementation No Variable Index 1 Clear Objectives and Goals 3,33 2 Type of Website System 3,33 3 Regulations 3,31 4 Clarity of E-Procurement Planning 3,28 5 Human Resources 3,27 6 Efficiency and Effectiveness 3,25 7 Infrastructures and Networks 3,11 The Effectiveness of The Implementation Of E-procurement Techonology At LPSE Kepulauan Riau Province 3,27
  • 12. Legend: 1.Year 2008 2.Year 2009 3.Year 2010 4.Year 2011 5.Year 2012
  • 13. Legend: 1.Year 2008 2.Year 2009 3.Year 2010 4.Year 2011 5.Year 2012
  • 14. Legend: 1.Year 2008 2.Year 2009 3.Year 2010 4.Year 2011 5.Year 2012
  • 15. PERCENTAGE OF TYPES IN PROCUREMENT IN 2012 LPSE CONTRUCTIONS 48% GOODS 30% OTHER SERVICES 12% CONSULTATIONS 10% KEPULAUAN RIAU
  • 16. Keterangan: 1.Tahun 2008 2.Tahun 2009 3.Tahun 2010 4.Tahun 2011 5.Tahun 2012
  • 17. 1; 498 Legend: 1.Kepulauan Riau Province 2.Outsides Kepulauan Riau Province 2; 110 600 500 400 300 200 100 0 TOTAL PROVIDER OF GOODS / SERVICES COMPANY BASED IN THE AREA OF ORIGIN IN 2012 1 2
  • 18. THE INFLUENCES OF POLITICAL PROCESS TO THE E-PROCUREMENT TECHNOLOGY IN KEPULAUAN RIAU
  • 19. THE INFLUENCES OF POLITICAL PROCESS TO THE E-PROCUREMENT TECHNOLOGY IN KEPULAUAN RIAU
  • 20. CONCLUTION • Implementation of e-procurement system on LPSE Kepulauan Riau Province already worked with very effective based on this research result then the index effectiveness level implementation of e-procurement system get value 3,27. It shows that in terms of planning, objectives, regulatory, human resources, infrastructure capable of supporting factors for effectiveness of implementation e-procurement in Kepulauan Riau Province. • The influences of politic process against to implementation of e-procurement system was be affected strongly. Total value of politic process impact against to implementation of e-procurement system is as big as 0,9740 or 97,40% and as big as 0,0260 or 2,60% impacted by another variable. Further conclusioning that politic process had very strong impact against to implementation of e-procurement system on LPSE Kepulauan Riau Province. Thus, to create an e-procurement implementation effectively be followed by a strong political will, in order to support the implementation of e-procurement systems are then able to reduce corruption and improve quality in the procurement of goods and services.