This study investigates the effect of E-Procurement policy on corruption in government procurement across 34 provinces in Indonesia. Using the difference-in-differences (DD) approach, this study analyses the panel data of 103 government procurement corruption cases handled by Indonesia’s Corruption Eradication Commission (KPK) from 2005 to 2017. This study finds that the use of E-Procurement significantly decreases the amount of government procurement corruption in provinces that have relatively high government procurement spending or capital expenditure. This finding shows the positive effect of E-Procurement on reducing the number of corruption cases in government procurement; it is in line with previous studies suggesting that E-Procurement supports the implementation of good governance in government procurement.
- capital expenditure
- government procurement