Clustering Formation and National Network of E-Procurement: A Case Study in Indonesia

Verawaty Mahyudin


Government services through internet (e-government) could enhance the public convenience in obtaining services from the government. E-procurement is a part of the e-government innovation for the procurement of goods and services. These include activities aimed at achieving minimum standards of quality of local government procurement system. Basically, e-procurement is a process of procurement of government goods/services which its implementation is a web-based by utilizing information and communication technology facilities including a public auction held electronically

by the government institution with the principles of fairness, accountability, transparency, competition, efficiency and effectiveness and openness, in an effort to improve services to the public, to empower the local entrepreneurs to compete widely, and to increase the efficiency of development resources.

Since the issuance of regulations in 2003 (Presidential Decree No 80), e-procurement has been developed, such as the clustering formation and national network of e-procurement. To evaluate its development, e-procurement needs to be reviewed again in a descriptive background matters, the implementation expectations, and the progress from time to time. This paper analyzes the clustering of e-procurement and national networks of e-procurement in Indonesia. The discussion reviews the regulation of e-procurement system, the concept of e-procurement improvement process, the concepts of e-procurement operations, the sample of case study in some province (, and the government organization which handles e-procurement matters named Bappenas (National Development Planning Agency).

The basic concept of clustering of e-procurement is how to input the auction process and its delivery of its standardized

procedures, specifications and qualifications. Regarding the national network of e-procurement, the development agenda of the government sector in Indonesia are to overcome the fragmentation in its implementation because there are many e-market places and also not to suppress the development of small/medium business. The paper reveals that the clustering of e-procurement in the public sector in Indonesia in general has begun to improve and fully integrated nationally (the national network of e-procurement) but in fact, the competition does not go well and the auction is not a competition, but it turns into a social gathering for those who have relation with government agency and the effect is that the government gets higher price than that in the market. In the future, e-procurement is expected to eliminate the determinants.


E-Government, E-Procurement, Clustering of E-Procurement, National Network of E-Procurement

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