THE IMPACT OF SUPPLIER SELECTION AND MONITORING, AS WELL AS GREEN PROCUREMENT, ON THE EFFICIENCY OF GOODS/SERVICES PROCUREMENT

Abstract

This study examines the role of supplier selection and monitoring, as well as green public procurement, in the efficiency of public procurement in Indonesia. A review of rational choice theory in public procurement highlights the importance of individual preferences when making decisions on selecting suppliers or providers of goods/services. The research findings indicate that supplier selection and monitoring will improve the efficiency of public procurement of goods/services. Supplier selection must comply with administrative/legal qualifications and technical qualifications as regulated by LKPP Regulation No.12/2021, and may allow additional requirements based on rational considerations while still adhering to regulatory compliance. Administrative defects, such as budget inflation or mark-ups, collusion, corruption, and nepotism that occur during the selection process of goods/service providers may result in criminal sanctions for the officials involved under Law No.30/2002 if proven deviation from the procurement process guidelines as stipulated by Presidential Regulation No.12/2021. Supplier monitoring by public buyers is key to ensuring that suppliers meet contract requirements and their obligations. Supplier monitoring aims to avoid quality defects or unqualified qualifications. If there are quality defects, the provider of goods/services will be subject to criminal sanctions under Law No.30/2002 and civil sanctions as regulated in Law No.1/2004 if a dispute arises in the execution of the contract. This research contributes to the government’s attention to the aspects of supplier selection and monitoring to ensure the practice of sustainable procurement of goods/services through process-based collaboration to produce environmentally friendly sustainable innovations.