e-Procurement Practices in Four Areas in East Java, Indonesia: Accountability, Efficiency and Barriers

Electronic Procurement (electronic auctions) aims to cut the chain of bureaucracy and make public sector spending more effective and efficient. This article discusses the implementation process of E-Procurement in four regencies in eastern Java: Sampang, Kediri, Surabaya and Jember with emphasis on the accountability and efficiency issues.The findings show that in 2011 there were 24,475 auction pack ages using the main frame of e-Procapplication with a value of more than 38 trillion Rupiah, of which 4.4 trillion Rupiah of state money could be saved by the application of e-Proc mainframe. There are two main aspectst of the process of implementing e-Proc that hampered e-Procacceleration and raised the potential for corruption in the process of implementing e-Proc: the user (end user of e-Proc) and the mediator (Procurement Services Unit-ULP of each government institution). These two elements play a crucial part in determining the process of E-Proc which subscribe to the notion of accountability, efficiency, transparency and fairness. Finally, this paper provides some recommendations to improve the current practice of e-Proc in Indonesia; first, creatingindicators/criteriaTransparency and accountability in the internal e-Proc implementator; Second, Injecting the value and the importance of leadership and personal integrity; Third, he need to reformulate a new system of E-Gov that compatible or supporting e-Proc; Four, Increasing the role of government monitoring unit.