Institutional Misalignment and Strategies for Optimizing Public Procurement Governance: Evidence from the Indonesian Ministry of Finance

Authors

  • Veranita Sinaga Politeknik STIA LAN Jakarta
  • Prof. Dr. Nurliah Nurdin, S.Sos, MA Institut Pemerintahan Dalam Negeri (IPDN), Jakarta

DOI:

https://doi.org/10.33019/equity.v14i2.895

Keywords:

Good Governance, Public Procurement, MAPS, Institutional Misalignment, Procurement Governance, E-Procurement

Abstract

This study examines public procurement governance at the Indonesian Ministry of Finance and develops an integrated strategy for its optimization. Employing a qualitative case study design, data were collected through interviews, Focus Group Discussions (FGDs), observations, and document analysis involving 19 informants. Data were analyzed through coding, thematic identification, cross-source comparison, causal relationship mapping, and source and technique triangulation. The findings show that the Public Procurement Governance Index (Indeks Tata Kelola Pengadaan, ITKP) increased from 77.93 in 2021 to 92.03 in 2024, with an internal score of 91.38 in 2025. However, these formal achievements have not been fully translated into substantive procurement performance. Persistent challenges include fragmented data, incomplete system-based processes, uneven human resource capacity, weak cross-unit coordination, and inconsistencies in compliance and control. The study identifies institutional misalignment as the central mechanism explaining the gap between high formal governance scores and persistent operational frictions in procurement implementation. This finding constitutes the study’s principal novelty by demonstrating that procurement governance performance cannot be adequately assessed through formal compliance and index achievement alone, but must also account for the alignment among institutional arrangements, human resources, digital systems, data, and procurement processes. Drawing on the MAPS framework, the study proposes an integrated governance strategy that emphasizes interoperability, organizational and human resource alignment, preventive risk management, process integrity, and performance monitoring. The study concludes that sustainable improvement in public procurement governance requires stronger alignment between formal institutional capacity and substantive implementation, thereby shifting the focus from compliance-oriented performance toward integrated, outcome-oriented governance.

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Published

2026-10-16

How to Cite

Institutional Misalignment and Strategies for Optimizing Public Procurement Governance: Evidence from the Indonesian Ministry of Finance. (2026). Equity: Jurnal Ekonomi, 14(2), 13-29. https://doi.org/10.33019/equity.v14i2.895