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

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.