Contextualizing Procurement Maturity: Lessons from Government Procurement for Enhancing Regional-Owned Enterprise (BUMD) Performance
DOI:
https://doi.org/10.59653/ijmars.v3i02.1568Keywords:
Procurement Maturity Model, Public Procurement, Hybrid Governance, Regional-Owned Enterprises (BUMDs), Strategic ProcurementAbstract
Procurement governance represents a strategic function critical to the success of public organizations, particularly Regional-Owned Enterprises (BUMDs), which operate under hybrid mandates combining public service delivery and market competitiveness. This study critically examines the applicability of the Indonesia Procurement Maturity Model (IPM2) to BUMDs and proposes an adapted conceptual framework better suited to their unique governance complexities. Through analytical deconstruction, the study finds that while elements such as transparency, accountability, and technology utilization in IPM2 are directly adoptable, significant adjustments are necessary in organizational structures, competency frameworks, and risk management approaches. Rigid elements tied to governmental budget cycles and inspectorate-driven oversight are deemed incompatible with BUMD operational realities. An adapted maturity model is proposed, positioning procurement as a strategic enabler supported by five interconnected adaptive dimensions: Strategic Human Capital Development, Agile Institutional Structures, Performance-Driven Management Systems, Strategic Technological Integration, and Proactive Risk and Opportunity Management. Grounded in contingency theory and contemporary hybrid governance literature, the model reframes procurement maturity as a dynamic, value-driven system rather than a linear, compliance-oriented progression. This research offers both a practical roadmap for BUMDs and a conceptual contribution to the evolving field of procurement governance in hybrid public organizations.
Downloads
References
Abduh, M., Sukardi, S. N., Wirahadikusumah, R. D., Oktaviani, C. Z., & Bahagia, S. N. (2023). Maturity of procurement units for public construction projects in Indonesia. International Journal of Construction Management, 23(13), 2171–2184. https://doi.org/10.1080/ 15623599.2022.2046941
Akbar, M. L. (2022). Manajemen Perubahan Dalam Peningkatan Tingkat Kematangan Unit Kerja Pengadaan Barang/Jasa Pemerintah di Indonesia. Institut Pertanian Bogor.
Alhusban, M., Nasereddin, M., Alghossoon, A., & Hatamleh, M. T. (2025). A hybrid conceptual procurement framework for BIM uptake to enhance buildings’ sustainability performance in the Jordanian public sector. International Journal of Building Pathology and Adaptation, 43(1), 93–116. https://doi.org/10.1108/IJBPA-07-2022-0109
Aulia, D., & Isvara, W. (2021). Strategies to Increase Procurement Maturity Level using Procurement Maturity Model to Improve Procurement Performance. International Journal of Scientific and Research Publications (IJSRP), 11(6), 489–501. https://doi.org/10.29322/ijsrp.11.06.2021.p11465
Bals, L. ;, Laine, J. ;, Mugurusi, & Godfrey. (2015). Evolving procurement organizations: A contingency model for structural alternatives Standard-Nutzungsbedingungen. Econstor. https://hdl.handle.net/10419/181885
Darmapramita, I. G. U., Salain, I. M. A. K., & Nadiasa, M. (2015). Analisis Tingkat Kematangan (Maturity Levels) Unit Layanan Pengadaan Kabupaten Badung. Jurnal Spektran, 3(2).
Efridha, N., Nasution, B., Nasution, F. A., & Mulyadi, M. (2023). Analisis Akibat Hukum Kekayaan Daerah yang Dipisahkan Pada Badan Usaha Milik Daerah (BUMD) Dikaitkan Dengan Kebijakan Direksi dalam Kegiatan Bisnis. Recht Studiosum Law Review, 2(1), 129–140. https://doi.org/10.32734/rslr.v2i1.12114
Fadlila, A. K. (2024). Relationship between public procurement governance and the performance of government agencies in Indonesia. Indonesian Journal of Multidisciplinary Science, 4(2), 97–103. https://doi.org/10.55324/IJOMS.V4I2.1026
Grossi, G., & Thomasson, A. (2015). Bridging the accountability gap in hybrid organizations: The case of Copenhagen Malmö Port. International Review of Administrative Sciences, 81(3), 604–620. https://doi.org/10.1177/0020852314548151
Hua, S. Y. (2022). Procurement maturity and IT failures in the public sector. Transforming Government: People, Process and Policy, 16(4), 554–566. https://doi.org/10.1108/TG-07-2022-0097
Ilahiyyah, E. N., Puhotomo, D., & Sriyanto. (2017, March 22). Pengukuran Kinerja Pengadaan Barang/Jasa dengan Menggunakan Indonesia Procurement Maturity Model di Unit Layanan Pengadaan Universitas Diponegoro. Industrial Engineering National Conference.
Maran, L., & Lowe, A. (2022). Competing logics in a hybrid organization: ICT service provision in the Italian health care sector. Accounting, Auditing & Accountability Journal, 35(3), 770–800. https://doi.org/10.1108/AAAJ-12-2019-4334
Potage, J. (2017). Managing procurement value creation with a maturity model. Logistique & Management, 25(4), 303–315. https://doi.org/10.1080/12507970.2017.1381050
Putri, S. M., Pratami, D., Tripiawan, W., & Rahmanto, G. (2019). Assessing of project management process knowledge area: Procurement based on project management maturity model pmmm) (case study of pqr company). IOP Conference Series: Materials Science and Engineering, 505(1). https://doi.org/10.1088/1757-899X/505/1/012004
Ruiters, C., & Matji, M. P. (2016). Public–private partnership conceptual framework and models for the funding and financing of water services infrastructure in municipalities from selected provinces in South Africa. Water SA, 42(2), 291–305. https://doi.org/10.4314/WSA.V42I2.13
Shakya, Dr. R. K. (2015). Good governance in public procurement: An evaluation of the role of an e-procurement system, Ph.D. Thesis, Capella University
Silveira, P. B. da. (2018). Hybrid governance structure between public company and private partners: the case of Infraero in the Brazilian airline sector. Revista Direito GV, 14(2), 537–556. https://doi.org/10.1590/2317-6172201822
Skelcher, C., & Smith, S. R. (2015). Theorizing hybridity: Institutional logics, complex organizations, and actor identities: The case of nonprofits. Public Administration, 93(2), 433–448. https://doi.org/10.1111/PADM.12105
Staples, W. (2010). Public value in public sector infrastructure procurement. Ph.D. Thesis. RMIT University.
Suardi, I. (2024). The Effect Of Maturity Of Procurement Unit Against Corruption Cases In Indonesian Government. Advanced International Journal of Banking, Accounting and Finance, 6(20), 01–12. https://doi.org/10.35631/AIJBAF.620001
Vakkuri, J., Johanson, J.-E., Feng, N. C., & Giordano, F. (2021). Governance and accountability in hybrid organizations – past, present and future. Journal of Public Budgeting, Accounting & Financial Management, 33(3), 245–260. https://doi.org/ 10.1108/JPBAFM-02-2021-0033
Downloads
Published
How to Cite
Issue
Section
Categories
License
Copyright (c) 2025 Nandang Sutisna, Titik Khawa Abdul Rahman, Shazali bin Mansor

This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International License.
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution-ShareAlike that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).