Journal of Humanities,
Social Sciences and Business
[Link]
Online ISSN 2810-0832
[Link]
Procurement Management Analysis of
Original Article
Goods/Service Provincial Government of
Central Sulawesi
Maria Lea Frensy Bakarbessy1*, Rudin M2, Denih Assah3
1STIAP Palu, Indonesia
2Universitas Abdul Azis Lamadjido Palu, Indonesia
Email: 1) sakinahmlfb@[Link]
Received : 09 June - 2025
Accepted : 30 July - 2025
Published online : 11 August - 2025
Abstract
The objective of this research is to investigate and assess how the principles of procurement for goods and services
are put into practice in the Government of the Central Sulawesi Province. Through a qualitative research
methodology, information was gathered from observation, interviews, and documentation with four chosen
participants. The analysis was carried out in five distinct phases: data collection, data simplification, data
demonstration, validation, and final thoughts. The evaluation of procurement principles is based on the criteria
specified in Presidential Regulation No. 21 of 2021. The findings reveal that the core procurement principles such
as transparency, accountability, openness, competition, and fairness, have not been fully implemented. Supporting
factors include adequate facilities that comply with national procurement standards and a well-structured training
model aligned with institutional needs. However, several challenges persist, including technical issues during
tender announcements due to server disruptions, low participation rates during the registration phase, and limited
responsiveness and personnel shortages during the job explanation stage. These findings highlight the need for
improved infrastructure and administrative capacity to ensure effective and compliant procurement processes.
Keywords: Accountability, Goods and Services Procurement, Public Sector, Transparency.
1. Introduction
The Indonesian people aspire and hold hope for the Government of the Republic of
Indonesia to achieve good governance. The Indonesian government is striving to achieve good
governance by implementing reforms in all government practices, including the use of
information technology or e-government, as well as by ensuring the presence of competent
and trustworthy human resources. One strategy employed by the government to promote good
governance is the utilization of e-government for the procurement of goods and services
(Malayu, 2016).
As the entity responsible for managing the state, the Government of the Republic of
Indonesia must prioritise the well-being of the public. This means ensuring that the needs of
the people are met through the provision of goods, services, and infrastructure development.
The government carries out the procurement of goods and services as part of its role as a state
administrator (Simamora et al., 2021). In the implementation of procurement, it is said to be
successful if the community can directly feel the results carried out. Procurement must be in
accordance with the concept of development planning in the use of the budget, the timeliness
of implementation, and the result of the product made in accordance with the planning
standards carried out by the government. The Government of the Republic of Indonesia in the
use of technology in the process of procurement of goods and services by the government is a
Copyright: © 2025 by the authors.
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form of change made because of the many problems that occur in the procurement of
government goods/services.
The utilization of transparency, accountability, openness, competitiveness, and
fairness/non-discrimination in the purchasing process of goods and services can enhance the
trust of the public in the procurement procedure as the outcomes can be easily explained in
terms of management, technical aspects, and finances (Wardhani & Purnamasari, 2021).
When the government acquires goods and services in a transparent, accountable, open, and
competitive manner, it can also lead to an improvement in public services. By following the
principles of procurement and embracing e-procurement, the chances of fraud can be reduced
due to the limited direct interaction between the buyer (government) and the seller (vendor)
facilitated by information and communication technology (Dalimunthe et al., 2022). The
acquisition of goods and services via e-procurement poses a challenge due to the longstanding
prevalence of corruption, collusion, and nepotism in the procurement process (Stamati et al.,
2015).
As a reference in this research, the results of previous research that have been carried
out are presented, namely: 1) Karyasasmita (2021) about the analysis was conducted on the
Implementation of Environmentally Friendly and Sustainable Goods and Services
Procurement within the jurisdiction of the Provincial Government of South Sulawesi. This
research was aimed at (1) examining the factors influencing the adoption of environmentally
friendly goods and services procurement by the Provincial Government of South Sulawesi (2)
evaluating the procurement process of goods and services within the Provincial Government
of South Sulawesi in relation to environmentally friendly goods and services procurement (3)
assessing the preparedness of the South Sulawesi Provincial Government.
2. Literature Review
2.1. Principles of Goods/Services Procurement
According to Presidential Regulation No. 54 of 2010, electronic procurement of
government goods/services (e-procurement) is based on the following principles:
A. Transparency
Transparency encompasses ensuring that the process and details of acquiring
goods/services are easily understandable and accessible to both interested providers and the
public at large (Tavares, 2024). A transparent process at every stage of goods/services
procurement will create an effective public oversight system over the process and performance
of procurement implementers, thus minimising public suspicion that the procurement process
is conducted manipulatively. Through the principle of transparent procurement, it is expected
to encourage healthy and competitive competition in the selection process of goods/services
providers, so that the selected provider is the one with the highest quality to carry out the task.
B. Openness
Openness entails allowing all eligible providers of goods and services to participate in
the procurement process, provided they meet the specified criteria and follow the established
procedures in accordance with existing rules and regulations (Barrot et al., 2018). The
principle of openness in the goods/services procurement process is applied at all stages of the
selection of providers, especially in the method of public tender. Violations of the principle of
openness are generally caused by collusion between prospective goods/services providers and
procurement officials/Procurement Services Unit (ULP), which tends to lead to manipulative
actions in the subsequent implementation process.
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C. Competition
Competition is essential in ensuring that the purchase of goods and services is carried
out through a fair process involving a wide range of eligible providers. This helps to ensure
that high-quality goods and services are acquired without any disruptions to the market
mechanisms. Healthy competition will produce credible and high-quality providers, because
the selection system is essentially conducted to find the best provider among the many
participants based on predetermined criteria, whereas unhealthy competition will restrict and
eliminate providers who actually have the competence to carry out the task, which clearly
affects the result of the work.
D. Fairness
Treating all potential goods/services providers equally, without showing favoritism
towards any specific party, is the essence of fairness and non-discrimination, even as national
interests are taken into account.
E. Accountability
Accountability involves adhering to the rules and regulations regarding the acquisition
of goods and services in order to provide justification (Bergsteiner, 2012). It entails being
responsible for carrying out the procurement of goods and services in accordance with ethical
standards, norms, and relevant laws for the benefit of all stakeholders and the general public.
F. Procurement of Goods/Services
Based on the 2010 Presidential Regulation of the Republic of Indonesia regarding
Government Procurement of Goods/Services, it is highlighted that the acquisition of
goods/services by Ministries/Agencies/Regional Work Units/other Institutions is crucial for
development. This process begins with planning and ends with the acquisition of
goods/services. The government's procurement of goods and services plays a vital role in the
advancement of development initiatives (Nyoman Berlian et al., 2024).
Having access to adequate goods and services within each government agency is
essential for the successful execution of their duties and functions. Insufficient facilities and
infrastructure can disrupt government operations and hinder optimal outcomes (Sopian,
2014). Furthermore, Wardiyanto (2012) defined public goods/services as goods whose usage
is related to the interests of the general public, whether in groups or generally. According to
Arrowsmith (2004), Bahagia (2011), Christopher et al. (2007) in principle, procurement is:
“an activity to obtain goods or services in a transparent, effective and efficient manner
according to the needs and desires of the user.”
2.2. Stages of Goods/Services Procurement Implementation
Government agencies require the procurement of goods and services as a necessary step
in the project cycle. This process encompasses planning for the required items and carrying
out all necessary activities to secure the goods and services as per the agreed upon contract or
agreement. The diagram below illustrates the various stages involved in the procurement of
goods and services.
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Figure 1. Goods/Services Procurement Cycle
Source: LKPP, 2012
Typically, the process of purchasing government goods and services through electronic
selection of providers, as outlined in Presidential Regulation No. 21 of 2021, involves various
stages. These stages include announcing the procurement, registering for auctions, providing
explanations, submitting and opening bid documents, evaluating bids and qualifications,
selecting winners, and announcing the results.
2.3. Implementation of Goods/Services Procurement through e-
procurement
In general, there are two methods for conducting e-procurement: e-tendering and e-
purchasing. E-tendering is a transparent process where all registered goods/services providers
can submit a one-time offer within a specified timeframe. The e-tendering process includes
announcing the procurement of goods/services and selecting a winner through the electronic
procurement system (Presidential Regulation No. 21 of 2021).
2.4. Flow of Thought
This research is a qualitative study intended to provide an overview of the
implementation of the principles of electronic procurement of goods/services (e-
procurement) within the Regional Government of Central Sulawesi Province in 2022. The
implementation of the principles of goods/services procurement is measured by the principles
of electronic procurement of goods/services namely transparency, accountability, openness,
competition, fairness or non-discrimination based on Presidential Regulation No. 21 of 2021
concerning Amendments to Presidential Regulation Number 16 of 2018 concerning
Government Procurement of Goods/Services. The analysis of the implementation of the
principles of goods/services procurement is expected to illustrate the extent to which the
procurement actors in the Regional Government of Central Sulawesi Province express their
views in implementing the principles of goods/services procurement.
In terms of the research flow, an examination was carried out on how the principles of
electronic procurement of goods and services (e-procurement) were being implemented in the
Regional Government of Central Sulawesi Province. The analysis focused on the various stages
involved in the procurement of goods and services. Each stage of the procurement process was
evaluated based on the principles of e-procurement, which encompass transparency,
accountability, openness, competition, and fairness in accordance with Presidential
Regulation No. 21 of 2021. This regulation outlines the implementation of the principles of
goods and services procurement, including transparency, accountability, openness,
competition, fairness, and non-discrimination. To maintain the research's focus, the thought
flow in this study is outlined as follows:
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Figure 2. Flow of Thought
3. Methods
Research techniques are fundamental strategies used to gather information for
particular objectives and applications. Following a scientific approach ensures that the
research is logical, observational, and methodical. Logical implies that the research is
conducted in a reasonable manner, making it comprehensible to human logic. Observational
means that the techniques employed can be perceived by human senses, allowing others to
witness and grasp the methods utilized. Methodical signifies that the research procedure
adheres to a logical sequence of steps (Sugiyono, 2013).
The research being discussed is characterized by its descriptive and qualitative nature.
Qualitative research involves conducting interviews with individuals who possess knowledge
related to the subject of study. The descriptive method is employed to present a comprehensive
understanding of the subject by gathering information from informants and facts in the
relevant field (Arikunto, 2010).
3.1. Research Location and Time
The research was conducted at the Goods/Services Procurement Bureau of Central
Sulawesi Province, which is the Procurement Unit in Central Sulawesi and acts as the central
agency for goods/services procurement matters. Therefore, this research was conducted
within the environment of the Goods/Services Procurement Bureau of Central Sulawesi
Province, and the research was carried out from January to June 2025.
3.2. Research Informants
The technique used to determine informants in this research is purposive sampling.
According to Siregar (2013), purposive sampling is a method of selecting respondents or
informants based on specific criteria. The criteria for determining informants in this research
are people who are appropriate, have competence, and can provide information whose truth
and accuracy can be trusted. Thus, the informant criteria in this research are procurement
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actors as stated in Presidential Regulation No. 21 of 2021 concerning Amendments to
Presidential Regulation Number 16 of 2018 concerning Government Procurement of
Goods/Services, which are described as follows:
1. Head of the Goods/Services Procurement Bureau of Central Sulawesi Province
2. Provider Working Group (Pokja Penyedia)
3. Procurement Officer
4. Provider
3.3. Data Analysis Technique
The methodology of data analysis is centered around information gathered from
interviews and various documents. The processing of data revolves around the information
acquired through interviews and other sources. The analysis of data occurs both during the
data collection phase in the field and after all the data has been gathered using an interactive
model for analysis. The analysis of data is conducted concurrently with the data collection
process in several stages, including data collection, data reduction, data display, and drawing
conclusions & verification.
4. Results and Discussion
4.1. Research Results
The Central Government designated Central Sulawesi Province as an autonomous
province established by Law Number 13 of 1964 concerning the Establishment of the First-
Level Regional Province of Central Sulawesi. With the development of the Government System
and the demands of the community in the Reform era, which wanted the expansion of regions
into regencies, on 3 November 1999, the Governor of Central Sulawesi (Brigadier General Ret.
H.B. Palidju) on behalf of the Minister of Home Affairs officiated the establishment of Banggai
Islands Regency, which previously was under the jurisdiction of Banggai Regency. The
Banggai Islands Regency became an autonomous regency based on Law Number 51 of 1999
concerning the Establishment of Buol Regency, Morowali Regency, and Banggai Islands
Regency.
4.2. Discussion
Presidential Regulation No. 21 of 2021 details changes made to Presidential Regulation
Number 16 of 2018 regarding Government Procurement of Goods/Services. It highlights that
the procurement process involves Ministries/Agencies/Regional Work Units/other
institutions acquiring goods/services starting from planning needs to the completion of
obtaining Goods/Services. Government procurement plays a vital role in the development
process. The interview findings with informants regarding the principles of government
procurement of goods/services in this study are outlined below.
A. Transparency
Regarding transparency in the Principles of Goods/Services Procurement in the
Government of Central Sulawesi Province in this study, the researcher presents the interview
results with the key informant, Mr Irwan SKM, [Link], as Head of the Procurement of Goods
and Services Division for Staging and Certification, who was interviewed on Wednesday, 24
June 2025, from 14:07 to 15:25 WITA, as follows:
“In my view, transparency in goods and services procurement in Central Sulawesi
Province is understood by some but not fully grasped because some parts of the
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Presidential Regulation have changed and are sometimes confusing. Moreover,
structural job duties assigned by superiors make it difficult for them to study the latest
regulations about procurement, even though as procurement actors they are obliged
to know and understand their duties as stated in the Presidential Regulation
concerning Goods/Services Procurement.”
(Interview with Mr Irwan SKM, [Link], Head of the Bureau of Procurement of Goods
and Services)
The informant’s opinion, in the context of transparency in the service of Civil Servants,
has not yet been implemented according to standard operational procedures. This is in line
with the expert opinion of Widodo and Wulandari (2024), who states that in every
implementation of policy, standards need to be established as guidelines, instructions,
demands, and references for policy actors so that they know what to prepare and do, who the
targets are, and what results are to be achieved from the implementation of the policy.
Therefore, standards and targets are part of the mechanisms that must be carried out in an
institutional organisation, which in essence represents the state in implementing good policy
regulations, particularly in the implementation of services by Civil Servants at the Bureau of
Goods and Services Procurement in Central Sulawesi Province.
B. Accountability
Regarding Accountability in the Principles of Goods/Services Procurement in the
Government of Central Sulawesi Province, here are the interview results with Mr Abd Jihad
Gobel as the Goods/Services Procurement Officer, interviewed on Thursday, 25 June 2025,
from 09:00 to 10:55 WITA, as follows:
“In my opinion, the implementation of goods and services procurement in terms of
accountability is in accordance with the existing Standard Operating Procedures
(SOP). Civil Servants in Central Sulawesi Province have treated citizens equally and
fairly in goods and services procurement. They also demonstrate consistent and
reliable behaviour as government administrators. Regarding accountability, values
such as transparency, integrity, responsibility, fairness, and consistency have been
implemented to ensure stability. Consistent implementation of a policy, procedure, and
resources will lead to the achievement of accountable principles.”
(Interview conducted at the Bureau of Procurement of Goods and Services of Central
Sulawesi Province)
C. Openness
Regarding Openness in the Principles of Goods/Services Procurement in the
Government of Central Sulawesi Province, here are the interview results with Mr Hendrikus
V Watuna, [Link] as the Selection Working Group, interviewed on Tuesday, 30 June 2025, from
11:00 to 12:55 WITA, as follows:
“The procurement of goods/services can be followed by all providers of goods/services,
provided they meet specific requirements/criteria according to applicable regulations
and clear procedures. Based on my opinion and experience, the principle of openness
in the procurement process has not been fully implemented at all stages of provider
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selection, especially in the public tender method. Now, all processes use computer
applications, making it seem difficult to commit deviations or violate the law in the
following implementation processes.”
D. Competition
Regarding Competition in the Principles of Goods/Services Procurement in the
Government of Central Sulawesi Province, here are the interview results with Mr Ir. Dedi, ST,
MT ([Link] 4), interviewed on Monday, 22 June 2025, from 17:00 to 17:45 WITA, as follows:
“The aspect of competition in goods/services procurement must be conducted through
healthy competition among as many equal and qualified providers of goods/services
as possible so that competitive goods/services can be obtained. Of course, this should
comply with applicable regulations in the Unitary State of the Republic of Indonesia,
whether the procurement is through tender or otherwise.”
E. Fairness
Regarding Fairness in the Principles of Goods/Services Procurement in the Government
of Central Sulawesi Province, here are the interview results with Mr Ir. Dedi, ST, MT ([Link]
4), interviewed on Monday, 22 June 2025, from 17:00 to 17:45 WITA, as follows:
“Goods/services providers should not be favoured to benefit specific parties while still
considering national interests. The information provided must be accurate and not
used for personal gain. Conflict of interest among procurement officers must be
eliminated. Furthermore, procurement officers are prohibited from receiving gifts,
facilities, benefits, or anything reasonably suspected to be related to the ongoing
procurement. The information provided must be accurate and not used for personal
gain. Management officers should have divided authority and responsibilities through
an internal management system, and there should be complete archives and
documentation of all activities.”
The results of interviews with informants indicate that the employees’ work in goods and
services procurement is already in accordance with the predetermined schedule. Regarding
the work of employees in procurement, an expert in Indonesian civil service, Thoha (2017),
argues that if employees have skills and knowledge, it will be easier to perform procurement
tasks and other duties.
The findings revealed that only a small portion of the environmentally friendly and
sustainable goods and services procurement mechanism has been put into practice,
particularly evident in the criteria used in selecting suppliers through the tender process. The
primary obstacle or hindrance identified was the lack of demand in the procurement planning
stage conducted by PA/KPA/PPK to fulfill the needs for goods and services in their respective
departments. This was further exacerbated by the limited validity period of the decree
appointing budget users/budget user proxies/commitment-making officials, resulting in a
tendency to prioritize budget utilization for goods and services expenditure within the
stipulated validity period.
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5. Conclusion
Based on the results of the research and analysis conducted by the researcher on the
implementation of the principles of procurement of goods/services in the Provincial
Government of Central Sulawesi, it can be concluded that the implementation of the principles
(a) transparency (b) accountability (c) openness (d) competition and (e) fairness has not been
carried out optimally. This is evidenced by the interview results from all informants involved
in the study. Several supporting factors were identified, including (a) supporting facilities that
meet the standards of Indonesian procurement laws and (b) a training model for procurement
that aligns with the policy implementation monitored by the National Institute of Public
Administration, as well as the needs of participants to be applied in regional agencies.
However, there are also inhibiting factors, such as (a) issues during the auction announcement
stage where document upload failures often occur due to server disruptions and (b) the auction
registration stage which has not been maximally effective, evidenced by the low number of
providers participating and varied understanding of the procurement mechanisms and
regulations among participants.
Based on the findings and conclusions of this study, several suggestions are offered.
First, the Central Government of the Republic of Indonesia should issue a law that mandates
transparency in goods and services procurement through e-procurement, accompanied by
implementation guidelines and legal sanctions for violations. Second, during the bid
submission and opening stages, LPSE is advised to provide technical guidance to participants
on using the SPSE application, considering the frequent errors that occur during electronic
bid submissions which result in bid documents being inaccessible at the opening stage. Third,
future researchers are encouraged to expand this study by exploring the implementation of
procurement principles across the entire Sulawesi region and Eastern Indonesia to provide
more comprehensive insights into the practice of goods and services procurement.
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