| 4. In which ways is the initiative creative and innovative?
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In order to make the e-Procurement implementation faster, a strategy has been set covering:
1. Regulations
The issuance of internal regulation from the ministry to regulate and support the implementation of the e-procurement in the form of Ministerial Regulation and Decree as well as a Circular. The regulations arrange among other things the basic order in the application of the e-procurement including its area coverage and its sort of system used by certain areas. The issuance of these regulations is a reflection of commitment from the ministry’s management to implement the procurement system.
2. In-stages implementation
In its implementation, e-procurement is carried out in- stages. There are two points in the ministry’s in-stages implementation namely: from its electronic process and from the coverage of implementing region/areas of the e-procurement system.
The objectives of the in-stages electronic process are to reduce the level of resistance on the one hand, and to enhance the acceptability and participatory levels on the other. In its initial step, the implementation of the e-procurement, the internet was a newly and relatively known by the people. Therefore, if the system was, at that time, fully implemented, the involving parties in the e-procurement would be unprepared and would hamper and slowdown the procurement process which would, eventually, cause the postponement of public works’ infrastructure project implementation.
From time to time, the coverage areas of the e-procurement implementation is extended according to the internet’s network infrastructure and human resources. The network infrastructure’s preparedness is obtainable from the Ministry of Communication and Informatics, and also from the field visit to the regions.
3. Socialization
The high levels of knowledge and understanding of the e-procurement system from the government officials and service providers are the key to success in implementing the e-procurement, and therefore, there is a need for gradual socialization.
4. Division of tasks
There are division of tasks amongst the echelon I within the ministry regarding the implementation of the e-procurement.
5. Filling process of data
The filling process of the e-procurement data is started from the filling of general information (in accordance with Presidential Regulation No. 54/2010 regarding the general plan of procurement) up to the appointment of the winner. The general information data is integrated into the bidding data, and it becomes the basic data to undertake tendering or bidding. The filling process of general information data is carried out after the state budget (APBN) is approved by the parliament. It’s usually carried out around the month of October, so that the bidding process can be carried out in November.
6. Access code registry
For the purpose of effectiveness and effectivity, the process of access code registry for committee/working group and service providers is carried out online. It could save cost and time because both the committee/working group and service providers do not need to come to Jakarta only to get the access code.
7. Monitoring and evaluation
The bidding process carried out by the Ministry of Public Works is periodically monitored in order that the public can obtain the maximum results in the form of real time public works’s infrastructure availability. The process can be monitored, at any time, by the decision makers within the ministry (at Echelon I level).
8. User friendly and safe system
The utilization of security feature such as Secure Socket Layer (SSL) and also an inscription to guarantee data secrecy, so that the system is trusted by users.
e-Procurement Flowchart
The Ministry of Public Works e-Procurement system can be accessed through the URL address http://www.pu.go.id or http://eproc.pu.go.id
Socialization or training of the system is carried out continuously every year. The following is the system’s socialization during the 2013 period:
Table 1. The e-Procurement Socialization for the 2013 Bidding
I Procurement Service Unit Working Group Place/City Participants Time of Socialization
Directorate General of Highways (Bina Marga)
1..Eastern Region Makassar 100 Oct. – 12
2..Middle Region Bali 100 Nov – 12
3. Western Region Bandung 100 Nov – 12
4.North Maluku’s Bina Marga Working Unit Ternate 30 Nov – 12
Directorate General of Water Resources
1. Eastern Region Batam 100 Nov – 12
2. Middle Region Surabaya 100 Dec – 12
3. Western Region Solo 100 Dec – 12
Directorate General of Sanitary Development
1.Eastern Region Batam 100 Oct – 12
2.Middle Region Surabaya 100 Nov – 12
3. Western Jakarta 100 Nov – 12
Directorate General of Spatial Planning
1. Central Jakarta 30 Jan – 13
2. Region Bandung 60 Jul – 13
Construction Nurturement Agency
1. Central and Region Bandung 40 Jan – 13
Agency for Research and Development
1.Central and Regions Jakarta 30 Dec – 12
Secretariate General
1.Central and Regions Jakarta 60 Dec – 12
Regional Working Units
1.South Kalimantan Banjarmasin 30 Feb – 13
2. West Sumatra Bukittinggi 30 Mar – 13
II Service Providers
Construction Nurturement Agency
1. West Sumatra Padang 50 Jan – 13
2. Banten Serang 50 Feb – 13
3. West Nusa Tenggara MataramNTB 50 Feb – 13
4. East Java Surabaya 50 Mar – 13
5. South Kalimantan Banjarmasin 50 Jun – 13
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| 5. Who implemented the initiative and what is the size of the population affected by this initiative?
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In its initial stage, this system was developed by the Application Development Sub-Division at the ministry’s Data Management Center (Pusdata) in 2002. The application was developed, using self-management system, by the sub-division programmers.
The ministry’s officials and staff involved were:
1. The ministry’s management who gave an approval and supported the e-procurement’s implementation and then issued regulation related to its implementation.
2. Secretariate General, namely The Data Management Center (Pusdata) as the developer and the institution in-charge of the system.
3. The Construction Nurturement Agency (Bapekon) that nurtures and executes the socialization and training of the e-procurement for service providers.
4. Each Echelon I Organizational Unit that nurtures the socialization and training of the e-Procurement for committee/procurement working units.
5. Inspectorate General as the implementation controller.
6. All the Working Unit Heads by assigning their staff to enter the General Planning of Procurement data into the e-procurement system.
7. Procurement Committee/Working Group that undertake the bidding process through e-Procurement.
8. Service providers that take part in the procurement of goods and services electronically.
9. Non-govermental organizations (NGOs) that keep watching the bidding process electronically.
10. The public or community who keep watching the bidding process electronically.
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| 6. How was the strategy implemented and what resources were mobilized?
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1. Financing
The e-Procurement implementation is financed through the state budget (APBN) without foreign assistance. Below is the 2013 implementation cost:
No. Activity Cost (in Rupiah)
1 System Nurturement 300.000.000
2 System E nhancement 400.000.000
3 Bandwidth Internet Subscription (450 MB) 4.600.000.000
4 Training for LPSE staff 30.000.000
5 Training for committee (16 times @Rp 200.000.000) by each Echelon I 3.200.000.000
6 Construction Nurturement 1.200.000.000
Total amount 9.730.000.000
2. Technicality
For safety reason, the technology which is being used is prepaid technology through self-management development of the core system.
Hardware Server
4 Server (2 Web Server, 2 DB Server)
HD Server Capacity : @10TB
Processor : 32 core
Network
Bandwidth 450 MB
Software
Operating System : Windows Server 2008 R2
DataBase : Microsoft SQL Server 2008 R2
3. Human Resources
The Data Management Center (Pusdata), Secretariate General of the Ministry are responsible for the e-procurement’s development, implementation and services.
The organization of the ministry’s e-procurement (LPSE) is divided into the following :
1. Advisory Team
The tasks are a.o.: to provide general advises regarding the implementation of the LPSE.
2. The Headf of LPSE
The tasks are a.o. : to lead the implementation of the LPSE.
3. Secretariate Unit
The tasks are a.o. : in charge of the LPSE’s secretarial affairs.
4. Technical Unit
The tasks are a.o. : to carry out the LPSE’s implementation technically under four Sub Units, namely :
a. System I Administration Sub Unit with the tasks a.o. to be responsible for the software;
b. System II Administration Sub Unit with the tasks a.o. to be responsible for the hardware and network;
c. Registration and Verification Sub Unit with the tasks a.o. to be responsible for registration and verification of users;
d. User Services Sub Unit with the tasks a.o. to be responsible for the whole users’ complaints handling process as well as users’ training process.
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| 7. Who were the stakeholders involved in the design of the initiative and in its implementation?
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A number of successes in the e-procurement implementation at the Ministry of Public Works:
a. The Number and Value of Packages
In the past three years, the ministry’s e-procurement has, every year, offered biddings no less than 8.000 package with the value of more than Rp 17 trillion (US$......). The following is the detailed number of packages and value announced every year :
Table 1. The number of package and ceiling value put on the bid through e-procurement system.
Year Number of Packages Bidding Ceiling (in trillions of rupiah)
2002-2004 4.617 7
2005 4.545 11,5
2006 6.278 15,59
2007 7.127 23,32
2008 6.737 18,25
2009 8.153 14,41
2010 8.393 17,57
2011 11.934 37,12
2012 12.735 51,19
2013 13.613 53,17
Total 51.070 212,1
b. The Number of Users
The ministry’s e-procurement system is, every year, accessed by more than 20.000 users with the number of visitors during the peak period (in December and January) reaching approximately one million visitors. Besides, the number of companies registered are getting bigger and bigger in number. In 2013, the total number of companies registered are 79.674 companies
Consisting of construction services, non-construction and consulting companies. The following are the registered service provider in the e-procurement system.
Table 2. The number of registered service providers
Type of Servives Number of Companies
Construction 58,630
Consultancy 5,389
Non-Construction 15,655
Total 79,674
The following is the number of users from the procurement committee and number of bidding participants during the 2009-2013 period.
Table 3. The number of bidding committee and participants :
Year Number of Committee/Working Group Number of Participants
2009 1.090 26.768
2010 1.158 23.091
2011 1.566 26.351
2012 1.825 25.884
2013 2.589 21.139
*26 November 2013 status
c. Efficiency
1) Time Efficiency
The number of time efficiency that can be done are :
a) Completion of bidding process.
The e-procurement data shows that the number of bidding completed within less than 45 days are around 37 percents; the number of bidding completed between 45-60 days are 25 percents; while more than 60 days are 37 percents. We can see here that 62 percents of bidding process are completed less than or equal to 60 days, which means that if the bidding was undertaken in November, then in February, the physical works should have been started with maximum completion.
b) Time saving
With the existence of e-procurement, service providers only need a computer with the internet linkage in search of information, undertake registration and sending of documents without physically coming to the bidding site which is manually undertaken.
c) Cost efficiency
A number of cost efficiency to be taken:
• Transportation budget for service providers once they want to register and take or see bidding documents on the procurement process as the processes are carried out through a system.
• Cost for photocopying of bidding documents. The documents no longer need any photocpying as they can be uploaded and then downloaded by service providers.
• Cost for photocopying of tender documents. The documents do not need to be photocopied in triplicate as it’s sufficient to download one tender document into the system.
d) Appreciations from Outsiders
• From 2004 up to 2011, appreciations received in the form of e-Government Awards for the Ministry of Public Works’ website (PU-NET) from daily Warta Ekonomi. One of the reasons, transparency as shown in its e-Procurement.
• From an NGO, Masyarakat Transparansi Indonesia (MTI) which appreciated the PU-NET as the best Ministerial website in applying budget transparency as compared to 40 ministries/institutions of other countries.
e) Low Resistance Level
From the 11-year-experience of the e-Procurement implementation in the ministry, there was only single service provider in one province that refused to implement the e-Procurement. It’s because of in stage application of the system that the service provider could adapt easily from the manual to the electronic ways.
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| 8. What were the most successful outputs and why was the initiative effective?
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The real time monitoring system has been used to monitor the daily progress of e-Procurement implementation. This system presents an executive summary for the ministry’s management that can be accessed through the internet. The real time system indirectly provides psychological effect to the executing staff in the field that their works are directly monitored by the management.
Gradually the ministry’s management undertakes monitoring and evaluation through a monthly as well as yearly management meetings. At every moment, decision makers within the ministry’s Echelon I level monitor the process. Information regarding the e-Procurement implementation that can be monitored are :
a) The number of packages (tender) announced
b) Percentages of each system of the above announcement
c) Number of packages under contract
d) The last three-year tender partnering data
e) The announced packages based on fund ceiling
f) Number of packages under contract based on duration of tender implementation.
The following is the monitoring system feature
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| 9. What were the main obstacles encountered and how were they overcome?
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A number of obstacles in the e-Procurement implementation :
1. Human Resources.
There are three kinds of human resources involved in the e-Procurement process namely from the Procurement Committee/Procurement Working Group, Service Providers, and the LPSE managers.
Constraints on human resources are solved through a continuous socialization and training namely :
a. Human resources of Procurement Committee/ULP Working Group. Every year, as many as 16 times training for procurement committee members held in various cities.
b. Human resources for Service Providers. Every year, approximately six times training for service providers held in various cities.
c. Human resources for LPSE managers. Every year, approximately six times training for the LPSE managers to improve their skill in programming, database, security, etc.
2. The TIK Infrastructure at Service Center.
Constraints in this field cover a.o. the bandwidth size, store capacity, backup server, and security.
These contstraints are overcome through the development of hardware and software infrastuctures every year.
Several steps taken are :
a. Improvement of bandwidth size to 450 MB
b. Purchase of Hardware Server (3 servers)
c. Purchase of approximately 20 Terabyte Harddisk
d. Development of data center backup.
3. Electronic Procurement Services (LPSE) Organization.
The LPSE organization was handled in an adhoc model under Pusdata (Data Center) with its task and function were not clearly defined. This constraints were overcome by the establishment of the LPSE Team through a Ministerial Decree No. 306/M/KPTS/2013 regarding the Establishment of LPSE Management Team, Ministry of Public Works.
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