Minister of Finance Sri Mulyani Examined a Master Thesis of MPKP FEB UI Student on Competitive Bidding of Government Procurement on Goods and Services
Nino Eka Putra ~ Humas FEB UI
JAKARTA – Bappenas scholarship students from the North Sulawesi Provincial Government with the specialization of Urban and Regional Planning in the Master of Economic Planning and Development Policy Study Program (MPKP) FEB UI, Billy Thandy Tulungen (1806247933) held the Final Work Session Test (Thesis) located in the Minister of Finance’s meeting room, the Ministry of Finance Republic of Indonesia Building, on Tuesday (7/1/2020).
The session was chaired by Sri Mulyani Indrawati as Minister of Finance of the Republic of Indonesia and FEB UI Teaching Staff, with advisor Vid Adrison as Chair of the FEB UI MPKP Study Program, and examiners Teguh Dartanto as Chair of the FEB UI Department of Economics.
The Final Work (Thesis) raised, entitled “Competitive Bidding on Procurement of Government Services: Empirical Evidence from the e-Procurement System in Indonesia”. In this study, investigating the effect of the number of electoral participants in the final evaluation stage before determining the winner to the ratio of the winner’s bid price and the HPS on the tender and selection package in Indonesia.
Using 526,453 cross-section data on tender and selection packages obtained using website scraping techniques on 402 LPSE (Electronic Procurement Service) websites throughout Indonesia from 2010 to September 2019.
“To determine this effect, we use the OLS method and the IV-2SLS method to reduce the potential for bias due to endogeneity. This study found that there was an influence of the number of participants in the final evaluation stage on the ratio of the winner’s bid price and HPS, which would reduce the ratio by 0.02412 units or save procurement expenditure through tenders or selection by 2.41% on the value of HPS,” Billy said.
In addition, it also found that there was an indirect effect on the value of the procurement package, the prequalification method and the evaluation pattern on the number of participants in the final evaluation stage before determining the winner. Meanwhile, this research investigates the effect of the number of electoral participants in the final evaluation stage before determining the winner on the ratio of the winner’s bid price and HPS on the tender and selection packages in Indonesia in 2010-2019.
We use unique procurement package data published on 402 LPSE websites throughout Indonesia. Thus, finding that the number of election participants at the evaluation stage before determining the winner has a significant and negative effect on the ratio between the bid price of the winner and the HPS, which indicates that competitive bidding at the evaluation stage before determining the winner increases the effectiveness of the tender and selection of government procurement and reduces government spending on procurement government service goods in Indonesia.
The results of the OLS estimation provide evidence of the influence of the number of electoral participants at the final evaluation stage prior to determining the winner on the ratio of the winner’s bid price and HPS. The number of participants in the final evaluation stage has a negative influence on the ratio of the winner’s bid price and the HPS.
“We also find that construction work is the smallest type of procurement in reducing the ratio. This is due to the complexity of the work compared to other types of procurement, both in terms of qualifications of labor, materials and materials needed. With the complexity of the work, the bid preparation cost of construction work is higher than other jobs,” he explained.
He continued, also found that the evaluation method of the combination of technical scores and prices could reduce the ratio between the winner’s bid price and the HPS. In this method, among the election participants experience imperfect information related to the technical and price offered, despite knowing the procedures for weighting each technical component and price. This benefits the government because by using an evaluation method combining technical scores and prices, obtaining the lowest winning bidder price and reducing government procurement spending.
However, on the one hand, the enactment of rules on the change in the proportion of technical weights and prices after the enactment of Perpres Number 16 of 2018 does not have an effect on the winner’s bid price ratio and HPS. “This is allegedly due to the small number of procurement packages that use the evaluation method of a combination of technical weights and prices after the enactment of Presidential Regulation Number 16 of 2018,” he said. After using the IV-2SLS method to reduce the potential for bias due to endogeneity, this study found that there was an influence of the number of participants in the final evaluation stage of the winner’s bid price ratio and HPS, where each increase in the number of participants as much as one participant would reduce the ratio by 0.02412 units or save procurement expenditure through tenders or selection by 2.41% of the value of HPS.
“In addition, we also found that there was an indirect influence on the value of the procurement package, the prequalification method and the evaluation pattern on the number of participants in the final evaluation stage before determining the winner,” he concluded.
Thus, the Council Leadership decided, Billy Thandy Tulungen (1806247933) was declared graduated with an A- grade and successfully obtained a Masters in Economics. Congratulations to Billy Thandy Tulungen, M.E.! (Des)
