Implementation Practices of Public Procurement Plans and Policies

Jufri Jacob

doi:10.15294/jejak.v10i2.11304

Abstract

Public procurement issues have drawn many concerns and became a public debate because the rules and regulations are constantly reformed and restructured. Public procurement contributions in the world economy are very significant. In Indonesia, according to the Ministry of Finance, public procurement spending for 2009 was 33.4 percent of total government spending. This study aims to determine implementation practices of Public Procurement Plans or Rencana Umum Pengadaan (RUP) in Bitung City. The multiple statistical regression equation is used to process data from 47 respondents from regional apparatus task forces (SKPD) and the results show that the influence of independent variables (X) on dependent variable (Y) is 87.3 percent (R2), while 12.7 percent is influenced by other factors. The result of F-test shows 36.231> F- table 3.21. The calculated probability value is 0.000 which is smaller than 0.05. The partial test (t-test) from 9 independent variables (X) identifies 7 variables that have significant effects on the scores of RUP implementation (Y). The overall results of t-test show that the implementation practices of public procurement plans have significant effects of the higher compliance rates on the output of goods and services.

Highlights

World Bank (2003) in its study reported that around 50-70 percents of state budget (APBN) were related to public procurement
Hui et al (2011) stated that because of the large amount of money spent in public procurements and the fact that the money is the people’s money, transparency and accountability are necessary in managing that huge amount of money (Badaso (2014)
This study aims to determine implementation practices of Public Procurement Plans or Rencana Umum Pengadaan (RUP) in Bitung City

Summary

Introduction

World Bank (2003) in its study reported that around 50-70 percents of state budget (APBN) were related to public procurement. An efficient procurement system can secure a significant amount of value for money spent by the government and plays an important part in tackling huge challenges brought about by developments (Ameyaw et al, 2012). In Indonesia, the Ministry of Finance reported that the amount of public procurement spending for 2009 was 33.4 percents of total government spending (Jacob, 2014). Hui et al (2011) stated that because of the large amount of money spent in public procurements and the fact that the money is the people’s money, transparency and accountability are necessary in managing that huge amount of money (Badaso (2014)

Objectives

Methods

Results