E-Procurement And Fraud In Local Government

Abstract

One of the important activities to support the wheels of the Indonesian economy which is prone to experiencing fraud is the procurement of goods and services. This sector absorbs the biggest funds in the distribution of the state budget and local government budget excluding subsidies and personnel expenditures, but this is not optimal because this sector is vulnerable to corruption. As a form of government innovation towards a prosperous and corruption-free Indonesia movement, the conventional procurement system has changed to a website and internet-based one named e-procurement. The study was conducted at one of the government locations that are considered prone to experiencing corruption in the procurement of goods and services, South Sulawesi Province. Not only focusing on the application of e-procurement in fraud prevention, but this study will also analyze intentions as moderators in the relationship between e-procurement and fraud prevention.

The results of this study indicate that the application of e-procurement can prevent fraud in the procurement of goods and services. Likewise, intentions can strengthen the influence of e-procurement on fraud prevention. This is because e-procurement has been well implemented in local governments so that the quality of goods and services procurement is getting better. The implication of this research is to contribute to the detection and disclosure of fraud in the goods and services procurement in local governments. Another urgency of this research is to provide recommendations for policy models that can be taken by local governments to reduce someone's intention to commit fraud. So, it can create a more transparent system and reduce the number of goods and services procurement fraudulent in local governments.