Article: Implementation of e-Procurement policy and corruption in public procurement: the case of Indonesia Journal: International Journal of Electronic Governance (IJEG) 2025 Vol.17 No.2 pp.208 - 221 Abstract: Public procurement frequently involves substantial budgets, rendering it vulnerable to corruption, it constitutes up to 21% of the total corruption cases handled by Indonesian Corruption Eradication Commission (CEC). To mitigate, Indonesian government has launched e-Procurement since 2008. This study examines the impact of e-Procurement implementation on the reduction of public procurement corruption. Employing the Negative Binomial Regression approach by analysing CEC data pertaining to public procurement corruption inkracht cases in 2015-2022, and introduce a new dimension by adding the institutional aspect. The findings indicate that e-Procurement implementation is significantly correlated with a decrease in the number of public procurement corruption cases. Furthermore, bureaucratic reform and performance accountability of institutions exhibit a significant correlation to the mitigation of public procurement corruption. These findings suggests that the combination of e-Procurement implementation and quality of institutions can be a decisive factor to minimise the level of public procurement corruption in Indonesia. Inderscience Publishers - linking academia, business and industry through research

Title: Implementation of e-Procurement policy and corruption in public procurement: the case of Indonesia

Authors: Bayu Surya Dani; Mohamad Dian Revindo

Addresses: Faculty of Economics and Business, Department of Economic Planning and Development Policy, Universitas of Indonesia, Jl. Salemba Raya IV No. 4, RT.1/RW.4, Kenari, Kec. Senen, Jakarta City, 10430, Indonesia ' School of Strategic and Global Studies, Universitas Indonesia (SKSG UI), Jl. Salemba Raya IV No. 4, RT.1/RW.4, Kenari, Kec. Senen, Jakarta City, 10430, Indonesia

Abstract: Public procurement frequently involves substantial budgets, rendering it vulnerable to corruption, it constitutes up to 21% of the total corruption cases handled by Indonesian Corruption Eradication Commission (CEC). To mitigate, Indonesian government has launched e-Procurement since 2008. This study examines the impact of e-Procurement implementation on the reduction of public procurement corruption. Employing the Negative Binomial Regression approach by analysing CEC data pertaining to public procurement corruption inkracht cases in 2015-2022, and introduce a new dimension by adding the institutional aspect. The findings indicate that e-Procurement implementation is significantly correlated with a decrease in the number of public procurement corruption cases. Furthermore, bureaucratic reform and performance accountability of institutions exhibit a significant correlation to the mitigation of public procurement corruption. These findings suggests that the combination of e-Procurement implementation and quality of institutions can be a decisive factor to minimise the level of public procurement corruption in Indonesia.

Keywords: e-Procurement policy; public procurement; corruption; institutions; Indonesia.

DOI: 10.1504/IJEG.2025.148167

International Journal of Electronic Governance, 2025 Vol.17 No.2, pp.208 - 221

Received: 18 Feb 2024
Accepted: 19 Mar 2025
Published online: 27 Aug 2025 *

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Title: Implementation of e-Procurement policy and corruption in public procurement: the case of Indonesia

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