Effect of the anti-fraud policy towards reducing public e-procurement corruption using the ability of internal audit forensic accounting techniques

Abstract

The SPSE e-procurement application has been used to suppress procurement corruption that often occurs in the Indonesian government. However, procurement corruption still occurs, allegedly the cause is due to the existence of a weak anti-fraud policy (AFP) in Indonesian government ministries and agencies. This study aims to prove empirically, whether there is an influence of AFP, on reducing corruption in the public e-procurement system with an approach to improving the health of the e-procurement system through proactive fraud detection with a forensic accounting technique approach. This research uses Quantitative Research Methods, research data is collected through questionnaire instruments, face-to-face interviews, and focus group discussions (FGD) which are carried out in 82 Ministries and agencies in Indonesia in 2022. Sampling using census techniques. The data were analyzed using a Structural Equation Modeling (SEM) approach assisted by the application of Lisrel 8.80. The results showed that anti-fraud policy has no significant effect on proactive fraud detection, anti-fraud policy has a positive and significant effect on reducing public e-procurement corruption, anti-fraud policy indirectly has a positive and significant effect on reducing corruption in public e-procurement through proactive fraud detection.