The bureaucratic reform of the Central Government and local governments became an important agenda during the Yudhoyono-Boediono administration.
The aim of this bureaucratic reform is to improve performance and to decrease corruption. The Ministry of Bureaucratic Reform is the leading agency to speed up this process. However, the current status of reform is to focus on increasing the remuneration rather than to reform the bureaucracy as a whole.
They are not interested in the effective reform, but only in higher compensation. Many reform plans are not being implemented, and there is neither a progress check nor a penalty for non-compliance or for slow compliance by the line ministries. One of the inconsistent examples in the implementation of existing rules is the e-procurement policy.
The president instructed all government units to use e-procurement in order to prevent corruption, but it is not exercised well in all units of government (which will be explained further in following chapters). Actually the government has been trying to reform government procurement of goods services with various policies, such as
a. Creating and improve procurement regulations;
b. Setting up a National Procurement Agency
c. Purchasing government‘s goods and services through e-procurement.
However, according to a World Bank study and Ministry of Home Affairs the government procurement reform in some areas lacks openness and more substantially a lack of following procedure which would allow transparency in decision-making of tender winning (2013).E-procurement (as a part of e-government project) is a fundamentally important policy in bureaucracy reform in order to decrease the level of corruption among bureaucrats. The Indonesian government was officially introduced to e-government systems via Presidential Decree (Keputusan Presiden) No. 6 Year 2001. However, few government institutions have actually implemented their project for e-government successfully (Jin Park, 2011).