COMPARISON OF ELECTRONIC AND TRADITIONAL GOVERNMENT PROCUREMENT FOR THE INDONESIAN CONSTRUCTION INDUSTRY
Procurement of Goods / Services electronically (e-Procurement) is a process of procurement that utilized the advanced information technology as a means to replace the conventional procurement process for goods and service. In term of electronic government procurement (eGP), it is expected that the utilization of eGP can improve transparency, fairness, and reducing the occurrence of corruption, collusion and nepotism. The purpose of this study was to compare the Government procurement of goods / services electronically (e-GP) and traditional procurement in terms of cost, time and stakeholder satisfaction. The method used in the study was to distribute questionnaires to the stakeholders involved in the process of procurement of goods / services either from official of the commitment holders, the Procurement Committee and the bidders. Data also supported by intervieing major stakeholders. There are 69 respondents and 3 important stakeholders were participated in the study. Data were analyzed using descriptive analysis and employed the paired sample t test. Results the analysis showed that the six out of eight items on the questions regarding cost factor have significant differences, whereas 5 items from eight items regarding time factor have significant differences, and only two out of eight items regarding satisfaction factor have significant differences. The study concludes that e-GP) is needed to be improved to satisfy the stakeholders in participating of eGP. The cause of dissatisfaction is due to the limited capability of human resources to implement eGP from both the Government official and the bidders. It is also found that the application of the system needed to be improved namely in term of the hardware capacity for internet and the stability of its network.