Published June 6, 2026 | Version v1

Transforming Government Procurement of Goods and Services Based on Mission-Driven Principles to Improve the Efficiency and Effectiveness of Local Government Finances in Indonesia

  • 1. Faculty of Law, Universitas Diponegoro, Semarang, Indonesia

Description

This study is motivated by the urgent need to strengthen the governance of government procurement of goods and/or services in Indonesia in the context of the 4.0 technological disruption and the demand for the application of good governance principles in local financial management. Procurement is positioned as a strategic instrument to support national and regional development, thus raising the question of how the mission-driven principle is implemented in local government procurement policies and to what extent this approach contributes to the efficiency and effectiveness of local finances. This study aims to explain the implementation of the mission-driven principle in local government procurement policies for goods and/or services and to analyze its correlation with efforts to achieve efficiency and effectiveness in local financial management. The study employs a qualitative method with a descriptive-analytical focus on normative (doctrinal) legal specifications, utilizing a legislative and conceptual approach. Primary data consists of primary, secondary, and tertiary legal materials, supplemented by primary data from interviews and brief observations. The research results indicate that the application of the mission-driven principle directs procurement policies not only toward cost efficiency but also toward achieving strategic development goals, enhancing accountability, and preventing corruption. This approach strengthens transparency, service quality, and more targeted budget utilization, thereby holding significant potential for achieving efficiency and effectiveness in local financial management while improving the quality of public services in Indonesia.

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