Compliance Level Analysis of Announcement of General Procurement Plan in Indonesia

The aims of this study is to analyze the Compliance Level of the Public Procurement Plan Announcement in Indonesia. The observation period for this study was carried out for three years. The test was conducted to determine the effect of Value of Procurement, Way of Implementation, Type of Procurement, and Provider Selection Method on the level of compliance in announcing the General Procurement Plan. The level of compliance with the announcement of the General Procurement Plan was mostly influenced by the value of the procurement contract. It was also found that the number of procurement packages in a self-managed manner had a significant negative effect on the level of compliance. In the type of procurement, it was found that the value of the procurement packages had a greater influence on the number of packages. It was also found that the value of the consultant procurement package had a negative effect on the compliance level of the General Procurement Plan announcement. In the provider selection method, it was found that the value of the procurement packages had a greater influence on the number of procurement packages.


Introduction
The process of procuring government goods / services is part of the cycle of state financial management (Hidayat, 2019). So that the government procurement of goods / services has a very important role because it involves the implementation of the main tasks and functions of each Ministry / Agencies / Regional Government (MARG). Procurement models and processes have been changed rapidly (Panayiotou, N. A. et al., 2004). This procurement process of course requires a good management process, starting with procurement planning (Faisal, et al. 2017).
The Government of the Republic of Indonesia through the National Public Procurement Agency (Lembaga Kebijakan Pengadaan Pemerintah/ LKPP) launched the General Procurement Information System (Sistem Informasi Rencana Umum Pengadaan / SIRUP). Information System for General Procurement Plans is an information system created and developed by LKPP to compile and announce the RUP (Rencana Umum Pengadaan) at each Ministry / Agencies / Regional Government. After the launch of the SiRUP, the procurement managers in the process of procuring government goods / services are expected to use this information system as a means or tool to announce the results of procurement planning in the form of a General Procurement Plan. SiRUP as a means of public service is expected to be a form of transparency in procurement carried out at MARG and to facilitate the community, especially business actors, in accessing information on plans for procurement of goods / services nationally. Some procurement plans don't have viability to adapt by the organizations due to its weaknesses (Primanda, P.P. et al., 2019).
Source: Data processed from PMEP, LKPP Figure 1 Monthly trend of RUP (General Procurement Plan) The obligation to announce this general procurement plan has fluctuated from year to year. This can be seen from the announcement of the general procurement plan carried out by MARG. There is significant relationship between procurement planning and the local authority's decisions (Basheka, B.C., 2009). In 2017 there were 67% of procurements announced through the General Procurement Information System compared to government procurement as a whole, with 2,282,833 announcements and a budget ceiling of 696 trillion rupiah. In 2018 there was a decrease to 64% of procurement in the General Procurement Information System compared to government procurement as a whole, with 2,428,536 announcements and a ceiling of 720 trillion rupiah. It can be seen that in terms of quantity there was an increase in the number of announcements and the value of the budget ceiling, but on the other hand there was a decrease in compliance from 67% to 64%, meaning that there was a decrease of 3%. In 2019 there was an increase to 81% of procurement in the General Procurement Information System compared to government procurement as a whole, with 3,557,654 announcements with a ceiling of 947 trillion rupiah. It can be seen that the trend of increasing compliance is also in line with the increase in the number of announcements and the value of the budget ceiling.

Source: Data processed from PMEP, LKPP Figure 2 Growth Rate of Compliance of General Procurement Plan Announcement
This announcement was made in the Procurement General Plan Information System during the month of October, November, December the previous year, and until December of the current year (Sawidara, et al. 2018). Until now, there is no definite data regarding the level of compliance for using the general procurement plan information system. What causes the level of compliance? The general procurement plan information system contains data on Value of Procurement, Way of Implementation, Type of Procurement, and Provider Selection Method. So that there are a picture of the decision taken so that it is very possible that the decision to announce it immediately or at a certain time is influenced by these considerations. The value of procurement is one of the first variables generated because it coincides with budget preparation. Determining the manner in which the procurement will be carried out, the type of procurement and the method of selecting providers will take time to announce it. Logically, the implementation method, type and method of selecting providers are influenced by the budget value and internal resources of the work unit concerned and of course depending on the reasons for the procurement needs.

Literature Review
Compliance theory is an organizational structure approach that integrates several ideas from classical and participatory management models. According to compliance theory, organizations can be classified according to the type of power they use to direct the behavior of their members and the type of participant involvement (Lunenburg, 2012). In most organizations, the types of power and engagement are related in three predictable combinations: coercive-alienative, utilitarian-calculative, and normative-moral (Etzioni, A. 1997

Procurement General Plan Information System
Based on Agency Regulation Number 7, 2018 article 29, government agencies must announce the general procurement plan. Information System for General Procurement Plan (SiRUP), is an information system created and developed by LKPP to compile and announce the RUP at each MARG. SiRUP is a Web-based Procurement Information System application which functions as a means or tool to announce the RUP (Hidayah, et al. 2020). SiRUP aims to facilitate the Budget User atau Budget User Authority in announcing their RUP. SiRUP as a means of public services related to RUP so that it makes it easier for the public to directly access the procurement of goods / services nationally (Lita, et al 2018). Users directly fill in the RUP into the SiRUP application on the LKPP website at the address http://inaproc.id/rup https://SiRUP.lkpp.go.id/SiRUP/. The SIRUP application and database are centralized on one server owned by LKPP. Decentralized SIRUP application management in each MARG (Faisal, et al. 2017).

General Procurement Plan
General plan for the procurement, hereinafter referred to as RUP, is a list of plans for the procurement to be implemented by the MARG. RUP is an activity consisting of identifying the needs for goods / services required by MARG, preparation and determination of a budgeting plan to the preparation of a Working Terms of Reference. RUP is a plan that contains activities and budget for the procurement financed by the MARG itself and / or financed based on cooperation between MARG in co-financing. RUP is prepared and determined by the PA. The RUP contains at least: Name and Address of the PA; Work package to be implemented; job location; estimated cost. The RUP began to be announced after the budget was available in the List of Budget Implementers and Ministry / Agency Budget Work Plan discussed with the House of Representatives. If the RUP has been announced and there is a change at the time the DIPA is ratified, the RUP that has been announced can be changed / corrected (editing packages through the provider and self-managed activities). At the latest the RUP will be announced in early January (Hidayat. 2019). There are some vital issues on procurement plans such as responsibility, reliability, lucidity etc. (Haron, N.H., 2011).

Way of Implementation of Procurement
Procurement through providers is a way of obtaining goods / services provided by business actors. Government Providers, hereinafter referred to as Providers, are Business Actors who provide goods / services based on contracts. Business Actor is any individual or business entity, whether in the form of a legal entity or non-legal entity established and domiciled or carrying out activities within the jurisdiction of the Republic of Indonesia, either individually or collectively through an agreement to carry out business activities in various economic fields. Package activities that require providers in their implementation are announced in the Provider section (Asliana, 2012). The packages referred to are packages whose value is above Rp. 50 million for goods, construction and other services. Consultancy packages announced in the supply section are with a ceiling value of each package above Rp. 10 million. Including packages for procurement of goods, construction and other services that use a work order even though the value is below Rp. 50 million. Work packages for hotel rentals with a value of up to IDR 50 million are sufficient to be combined in Self-Management Activities. Meanwhile, hotel rental packages with a value of more than IDR 50 million are issued from Self-Management Activities and announced to the provider. Procurement through self-management is a way of obtaining goods / services that are done by MARG, other MARG, community organizations, or community groups (Deputy II Decree No. 10/2019). Self-management activities that are announced in the Self-Management section of SiRUP are groups of activities that may consist of (some or all of the items below): team honorariums; shopping for stationery; shopping for computer materials; meeting consumption; official travel expenses; hotel rental; operational costs of official vehicles; subscription and power costs (electricity, water, and telephone) (Ratnaningsih, 2010).

Provider Selection Method
E-purchasing is carried out for other goods / construction work / services that have been listed in the electronic catalog. The implementation of e-purchasing must be made for goods / services related to meeting national and / or strategic needs that are determined by the minister, head of institutions, or regional heads (Article 38 paragraph (2) in conjunction with Article 50 paragraph (5) Presidential Decree 16/2018). Direct procurement is carried out for goods / construction work / other services with a value of not more than IDR 200 million (Article 38 paragraph (3) of Presidential Decree 16/2018). The implementation of direct procurement is carried out as follows (Article 50 paragraph (7) Presidential Decree 16/2018): direct purchase / payment to providers for the procurement of other goods/services using proof of purchase or receipt; or request for supply accompanied by clarification as well as technical and price negotiations to business actors for direct procurement using a work order. Direct appointment is carried out for other goods/construction work / services under certain circumstances, by inviting 1 selected business actor, accompanied by technical and price negotiations (Article 38 paragraph (4) in conjunction with Article 50 paragraph (6) of Presidential Decree 16/2018). The tender is carried out quickly in terms of (Article 38 paragraph (6)  Availability of market prices for goods/services for which there are no transactions in the market, it means that the providers do not exist. However, the goods/services actually already exist or can be realized. If a public auction is used or a direct appointment, the provider does not yet exist. For that, it is necessary to do a contest/contest. If the procurement of other services which is a process and the result of original ideas, creativity, innovation, and certain methods of implementation and cannot be determined based on unit price, is carried out in a competition. The contest is conducted for the procurement of goods that do not have a market price or cannot be determined based on the unit price. Competitions are held for service procurement, which is a process and result of ideas, creativity, innovation, culture and specific implementation methods and cannot be determined based on unit price (Deputy II Decree No.10/2019). This distribution diagram shows that the number of procurements using provider methods is more than self-managed. The value of the procurement using the provider is Rp. 471.27 trillion, and using self-management of Rp. 159.12 Trillion. Meanwhile, the construction procurement type dominates with a total package value of Rp. 230 Trillion. Based on the method, e-tendering becomes a method of selecting providers with the largest value with Rp. 327 Trillion.

Findings
The bigger and the more ways of implementing Selfmanaged procurement, the lower the level of compliance.

Findings
All variables have a positive effect on the level of compliance except for the Package Quantity of ePurchasing, consequently the more the number of ePurchasing packages, the lower the level of compliance. Source: Data processed from PMEP, LKPP Data processing shows that the level of compliance is influenced by the value of the procurement contract, which is 99.6%. This shows a very large effect of the contract value on the compliance level of the RUP announcement, while the remaining 0.4% is influenced by other things (number of procurement packages? It could also be due to other factors).
The model of how to implement the procurement with the variable number of self-managed packages and providers shows R Square 0.403. Anova test shows F count 14.180 with a sig value of 0.000. This F test shows that the model has good model strength. For the t test, it was found that the standardized beta number of provider packages was 2.128 and the number of self-managed packages was -2.174, both of which showed t count with a sig value of 0.000. This t test shows the significance of the influence of providers and self-management on the level of compliance of the RUP announcement. The model of how to implement procurement with variable value of self-managed packages and providers shows R Square 0.07. Anova test shows F count 1.589 with a sig value of 0.216. For the t test it was found that the standardized beta value of the provider package was 0.343 and the value of the self-managed package was -0.401, both of which showed t count with a sig value above 0.05. Based on this data processing, we can see that: 1) The number of procurement announcement packages in the RUP affects the level of compliance more than the value of the contract it has budgeted for (0.40 versus 0.07); 2) The value of the procurement announcement package at the RUP does not significantly affect the level of compliance (both the significance of the model and each variable> 0,000; 3) The number of self-managed announcements in the RUP has a negative effect on the level of compliance. This means that the more ways of implementing self-managed procurement, the level of compliance will decrease. Procurement type model with variable number of undetermined packages, goods, integrated, construction, other services, and consultants shows R Square 0.848. Anova test shows F count 35,211 with a sig value of 0,000. This F test shows that the model has good model strength.
For the t test, it was found that the standardized beta number of consultant packages was 2,550, indicating that t count with a sig value of 0,000. This shows that a significant effect is partially shown by the variable number of consultant packages. The constant t count of 5.199 with a sig value of 0.000 indicates that the constant beta of 0.017 has a significant effect on the compliance level of the RUP announcement. Procurement type model with undetermined package value variables, goods, integrated, construction, other services, and consultants shows R Square 0.967. Anova test shows F count 183.139 with a sig value of 0.000. For the t test found standardized beta value of package goods 0.388; other services 0.253; construction 0,701 with sig test value t 0,000; while the Integrated value is 0.146 with a sig t test of 0.001. On the other hand, it was found that the standardized beta value of the consultant package was -0.194 with a sig t test of 0.027. Based on this data processing, we can see that: 1) The value of the procurement packages in the RUP by type has a greater influence on the level of compliance of the RUP announcements compared to the number of procurement packages; 2) Partially, the significant variables affecting the compliance level of the announcement of the RUP are more than the contract value compared to the number of contract packages; 3) There are three variables that have a negative standardized beta value on the type of procurement, namely: Number of packages of goods (-0.895) and construction (-0.294) although with sig values of 0.057 and 0.

Source: Data processing
Based on this data processing, we can see that: 1) The value of the procurement packages in the RUP according to the method of selecting providers has a greater influence on the level of compliance of the RUP announcements compared to the number of procurement packages; 2) Partially the variables that significantly affect the compliance level of the RUP announcement are more than the contract value compared to the number of contract packages based on the provider selection method; 3) There is 1 variable that has a negative standardized beta value in the provider selection method, namely: Number of ePurchasing packages (-0.087) although with a sig value of 0.344.
In response to the results of this data processing, an internal FGD was conducted within the Directorate of PEMP LKPP. Several speakers gave several responses: The issue of compliance with the announcement of the RUP is that there is no clear rule regarding when to announce the RUP if it refers to Agency regulations LKPP No. 5 of 2019. This would indeed make the government institution think it was not important when the RUP was announced. Planning that should have existed since the State Budget was even passed, the procurement of goods and services will not be announced until a time that is considered relatively close to the time of its implementation.
Regarding procurement by means of self-management, in contrast to the way of implementing procurement by using providers who use and / or relate to 3rd parties, self-management is internal. But this could have potential negative. Internal and external relationship issues are the user's point of view. On another view, the announcement of the RUP is essentially an effort to implement the principles of transparency and accountability. So that the presence or absence of a third party in the procurement is a separate issue. On the other hand, not announcing selfmanagement is more because most of the self-managed procurement is in the form of activity honoraria and the value is relatively small. So many government institution decided not to announce.
In terms of time, self-managed procurement was announced, but the government institution preferred to announce it in a tight time with the implementation and management of activities. Many work units said that self-management was not very important. This could be due to a lack of human resources or quality of human resources. However, most procurement HR understands that there is no penalty for not announcing procurement in a self-managed manner. Therefore, there should be rewards and punishments to motivate the procurement ecosystem regarding the importance of announcing the RUP.
Meanwhile, regarding the type of consultant procurement, this type of consultant procurement is a type that has a high risk. On the other hand, this type of procurement relates to other jobs. Usually, most types of consultant work are carried out by construction work. So in essence this type of consultant work is a planning job from construction work which has a much higher value than the consultant's work.

Conclusion and Suggestion
Based on the results and discussion, the following can be concluded: (1) There is a very large effect of the contract value on the RUP on the compliance level of the RUP announcement; (2) Based on the way the procurement is carried out, the number of procurement announcement packages in the RUP affects the level of compliance more than the value of the contract it is budgeted for. The value of the procurement announcement package at the RUP did not significantly affect the level of compliance (both model and respective significance). The number of self-managed announcements at the RUP has a negative effect on the level of compliance; (3) The value of the procurement packages in the RUP by type has a greater influence on the level of compliance of the RUP announcement compared to the number of procurement packages. Partially, the significant variable that affects the compliance level of the RUP announcement is more from the contract value than the number of contract packages. The value of the consultant package announced at the RUP has a negative effect on the level of compliance; (4) The value of the procurement packages in the RUP according to the method of selecting providers has a greater influence on the level of compliance of the RUP announcements compared to the number of procurement packages. Partially, the significant variable affecting the compliance level of the RUP announcement is more from the contract value than the number of contract packages based on the provider selection method. There are several policy suggestions that can be made by the Directorate of PEMP LKPP: Regulations and or at least a letter of appeal regarding the importance of announcing the RUP, including procurement by self-help is required. Socialization is needed on the type of procurement of consultant work with an emphasis on the value of consultant packages. These two policies are important in an effort to increase the level of compliance of the government institution in each MARGs at the announcement of the RUP in an effort to increase transparency and accountability of the procurement of goods and services in Indonesia.