Analysis of the Implementation of In-House Procurement Policies on Micro and Small Businesses in the State Budget/Regional Budget

5 Pages Posted: 6 Mar 2023

See all articles by Bonatua Silalahi

Bonatua Silalahi

Trisakti University - Faculty of Economic and Business (FEB)

Date Written: February 27, 2023

Abstract

Procurement of government goods/services through In-house Procurement feels less empowering for providers, especially Micro and Small Enterprises (MSEs) considering that this procurement method justifies the discretion in applying the principles stipulated in the Presidential Regulation. This special treatment makes many budget users choose to work on the goods/services needed by their agency even though this can be provided by MSEs, especially by construction service providers. By reviewing the application of the seven principles of procurement to In-house Procurement practices and a comparative study of International Procurement policies, it is concluded that In-house Procurement should be categorized as exempt Procurement and monitored very closely.

Keywords: Procurement, In-house Procurement, Micro and Small Enterprises.

JEL Classification: H57

Suggested Citation

Silalahi, Bonatua, Analysis of the Implementation of In-House Procurement Policies on Micro and Small Businesses in the State Budget/Regional Budget (February 27, 2023). Available at SSRN: https://ssrn.com/abstract=4371643 or http://dx.doi.org/10.2139/ssrn.4371643

Bonatua Silalahi (Contact Author)

Trisakti University - Faculty of Economic and Business (FEB) ( email )

West Jakarta, 11440
Indonesia

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