Recent Administrative Reform in Indonesia

The Implementation of E-Procurement (LPSE - LKPP)

Presented by: Jefri

THE IMPLEMENTATION OF E-PROCUREMENT (LPSE)

INDEX

THE IMPLEMENTATION OF E-PROCUREMENT (LPSE)

PART I ADMINISTRATIVE REFORM

1.

Basic Concept for Administrative Reform

According to Wallis, 1989

an induced, permanent improvement in administration
According to Straussman & Zhang, 2001
administrative reform in developing countries emphasize more traditional concerns of
institutional development and tend to focus on capacity building
According to Rasmussen, 1994
administrative reform is need for three types of efficiency: efficiency in the sense of
an absence of patronage, corruption and extreme partisanship; efficiency in the use of
men, resources, and industries; and efficiency as a code word for the concept of a
society

THE IMPLEMENTATION OF E-PROCUREMENT (LPSE)

PART I ADMINISTRATIVE REFORM

1.

Basic Concept for Administrative Reform

Administrative Reform Strategies (Turner and Humle 1997)

Restructuring
Participation
Human resources issues Accountability Public private mixes

Challenges
Management (finance/human resource/leadership)
Measuring performance
Accountability/responsibility for implementation
Governance

THE IMPLEMENTATION OF E-PROCUREMENT (LPSE)

PART I ADMINISTRATIVE REFORM
Cont...
Four Factors of Administrative Reforms
Global Economics Competition

Source: Kamarack, 2001 : 47

THE IMPLEMENTATION OF E-PROCUREMENT (LPSE)

PART II REFORM IN THE PUBLIC SERVICE

Public Service Reforms has seen a shift in focus, from the adherence of formalized
procedures* to an emphasis on resource allocation and goal achievement for improved
service delivery to the public. (Lufunyo, 2013)
Public Service Reform means that the main emphasis of these reforms has been to run the
government and public services on business lines* (Sangita, 2002)

THE IMPLEMENTATION OF E-PROCUREMENT (LPSE)

III NEW STRATEGY

Public procurement is the process by which governmental agencies

acquire goods, services and works from third parties. Governments
may adopt different regulations for procurement processes that can
range from selective outsourcing to large outsourcing deals
(Cordella & Willcocks, 2012)

LPSE in Indonesian Layanan Pengadaan Secara Elektronik or

e- Procurement Service is an organiser of the electronic system of
goods or services procurement for Government.

THE IMPLEMENTATION OF E-PROCUREMENT (LPSE)

III NEW STRATEGY

Basic Laws of eProcurement

Perpres 54/2010 jo Perpres 70/2012
Perka LKPP 2/2010
LPSE

Perka LKPP 17/2012

e-Purchasing

Perka LKPP 18/2012

e-Tendering

SOP/SLA

Buku Panduan
Aplikasi

Standard
Dokumen

Syarat
Ketentuan
Aplikasi

Syarat
Ketentuan
Aplikasi
Buku Panduan
Aplikasi

THE IMPLEMENTATION OF E-PROCUREMENT

III NEW STRATEGY

Efficient
Accountable

Fair/Non
Discriminate

Effective

Principles of
Goods/
Services
Procurement

Competitive

Transparent

Open
Source by: LKPP Website

THE IMPLEMENTATION OF E-PROCUREMENT

NEW STRATEGY

Manual vs Electronics (e- Proc)

No.

Activities

Manual

Electronics

1.

Administrative Process

Difficult

Easy

2.

Vendors Sign Up

Be Repeated

Just Once

3.

Document Submit

Must be Face-to-Face

Through the
Internet Access

4.

Face to Face Frequency

Often

No Human
Interaction

5.

Confidentiality of Tenderers

Not Guaranteed

Guaranteed

6.

Transparency

Low

High

7.

Competitiveness

Relatively Closed

Open

8.

KKN Opportunities

Bigger

Small

9.

Auction Timing

18 45 Days

18 Days

10.

Effeciency

Low

10 30%

11.

Inspection Process

Long

Fast, Accurately

12.

Monitoring

Difficult

Easy, Accurately

THE IMPLEMENTATION OF E-PROCUREMENT

IV IMPACTS

1.
1.
2.
2.
3.
3.

To
To get
get more
more offers
offers
To
To make
make easy
easy the
the administrative
administrative processes
processes
To
To make
make easy
easy the
the responsibility
responsibility in
in procurement
procurement
processes
processes

ULP / PP
1.
1.
2.
2.
3.
3.

Vendors

To
To create
create good
good competition
competition in
in their
their business
business
To
To expand
expand the
the business
business opportunities
opportunities
To
To give
give a
a chance
chance for
for vendors
vendors in
in following
following the
the
auction
auction
4.
4. To
To decrease
decrease the
the transportation
transportation budget
budget in
in
following
the
auction
following the auction

To
To give
give a
a chance
chance for
for society
society in
in updating
updating many
many
information
about
procurement
information about procurement

Society

CONCLUSION
Currently, Administrative Reform in Indonesia is already exist. It started when the
new order era has breaking down into the Reform Era in early 1999. Administrative
Reform means a reform of all things that occured in order to make administration will
running well without any violation of law.
Public Service Reform assumes that a reform is all about the improvement of
infrastructures (physical or non-physical) of the Public Services and it is purposed to make
public services will approved by all people.
LPSE as a product of LKPP is the one example for Administrative Reform , especially
in Public Services Reform. Actually, this product is created to accelerating the implementation of
government procurements.

LKPP

Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah

Thank You

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