E-PROCUREMENT IMPLEMENTATION AND BUDGET ABSORPTION IN INDONESIAN LOCAL GOVERNMENT

The information technology has been utilized widely and its utilization influences the performance level in public sector. The technology usage of goods/services procurement system electronically (e-procurement) in the government is absolutely important for achieving the acceleration of State Budget (APBN) and Regional State Budget (APBD). The acceleration of APBN and APBD implementation should be shown by the absence of buildup budget at the end of the year. This research aims at examining the influence of e-procurement technology usage toward the budget absorption. This research uses primary and secondary data. Primary data is taken from questionnaire meanwhile secondary data is taken from the Budget Realization report per trimester of East Java Province Regional Secretary. The data is collected by using 71 questionnaires which are sent to 71 Regional Working Unit (SKPD) in East Java Province. From the amount of those questionnaires, there are only 47 questionnaires can be used. The data quality test uses software SPSS 21.0 meanwhile Partial Least Square (PLS) technique with software WarpPls 5.0 is used to analyze the data. This research result shows that e-procurement technology usage has an effect toward the budget absorption. However, e-procurement technology usage through procurement practice does not have an effect toward the budget absorption. Keywords: E-procurement Technology Usage, Procurement Practice, Budget Absorption.