Analysis of Public Procurement Governance Related to the Participation of Micro, Small and Cooperative Enterprises in Government Procurement

Ruddy Awaluddin (), Muhammad Zilal Hamzah and Eleonora Sofilda
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Ruddy Awaluddin: Universitas Trisakti, Faculty of Economy and Business
Muhammad Zilal Hamzah: Universitas Trisakti, Faculty of Economy and Business
Eleonora Sofilda: Universitas Trisakti, Faculty of Economy and Business

A chapter in Proceedings of the International Conference on Sustainable Collaboration in Business, Technology, Information, and Innovation (SCBTII 2024), 2024, pp 3-28 from Springer

Abstract: Abstract Community economic empowerment, especially Micro and Small Enterprises (MSEs) through government procurement of goods and services (PBJP), is a government strategy for increasing the role of MSEs in Indonesia. However, implementing the policy is hampered by the complexity of PBJP regulations, market access, the ability of MSEs, and competition. The government is pursuing a policy through Presidential Regulation (PERPRES) No. 12/2021 that requires Ministries/Institutions/Local Governments to allocate a minimum of 40% of the procurement budget for MSMEs, which aims to increase the role of MSEs. This research examines the Implementation of PERPRES 12/2021 regarding the participation of MSEs in PPBJ, with several factors, including regulation, market access (e-procurement), capabilities, and competition of MSEs which affect MSE performance. Also, MSE participation in public procurement was influenced by MSE performance. Furthermore, this utilized mixed method quantitative and qualitative analysis: Structural Equation Model and Systematic Literature Review. The findings are (i) Regulatory factors, transparency, MSE capabilities, market access, and competition dominantly influence MSE performance in implementing MSE participation policies in PBJP. (ii) Governance factors are considered the least influencing factors. (iii) SLR analysis: governance factor in quantitative analysis is a novelty due to the lack of studies. The research findings can be used as an evaluation of PBJP policy governance related to MSE participation.

Keywords: Governance; Government Procurement; MSEs Performance; Public Policy (search for similar items in EconPapers)
Date: 2024
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DOI: 10.2991/978-94-6463-558-4_2

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