The impact of e-Procurement practice in Indonesia government: A Preliminary Study (The case of Electronic Procurement Service at Bekasi District)

Abstract

In digital economy, government of Indonesia uses the internet to deliver services and to communicate with citizens and organizations. One of applications are e-Procurement and LPSE is a unit to hold the service system of e-Procurement. Procurement of goods and services electronically in addition will increase transparency and accountability, improve market access and healthy competition, as well as improving the efficiency of the procurement process. Based on the background and specific objectives to be achieved, then the research will be viewed from e-Marketplace participation, Trust and its impact on the performance of existing procurement within the institution. Methods of data analysis used in this research is by using analysis of Structural Equation Modelling (SEM) by using the program Partial Least Square (PLS) to examine the relationship between variables. The population used in this study is an enterprise as well as other clients using the system LPSE Bekasi District. There are three part in this study population, namely the provision of a company, customer, and supplier of LPSE users amounted to 60 users. From data analysis, there are one hypothesis that rejected. The implication of this study are implementation of e-procurement and e-marketplace participation giving impact to procurement performance.