As one of State Enterprises must applies the Good Corporate Governance (GCG) in business and management aspects of the company at all levels, PLN develops IT Governance (IT Gov) within the scope of business and implementation of corporate management. IT Gov can improve company capabilities in order to contribute the creation of added value, as well as the effectiveness and efficiency.
Key aspects of GCG principles include fairness, responsibility, transparency, independence, independence, accountability, harmony and responsibility for achieving company goals. All the State Enterprises are required to implement GCG on every aspect of business and corporate management in all its ranks. This may well reflect a process of decision-making in governance providing IT. PLN E-Procurement (eProc) as the application which is supports the GCG and as an implementation of IT Gov.

Realization of the application is the result of PT.PLN (Persero) management policies in the year of 2000 rerelated to the PLN Material Stock Information, Preparation of Estimated-Own-Prices (HPS), and Material Movement Monitoring. While the results of 2003, Commission Meeting set to optimize eProc PLN already developed for the achievement of an optimal purchase price and the achievement of an efficient PLN Inventory. Manual procurement process can lead to difficulty of information on specific unit price in PLN’s internal conditions, differences treatment to the candidates of Goods/Services Provider (vendor), and weak responsibilities of the procurement process results a lot risks in the future.Related to the lack of information in the warehouse inventory, can result in difficulty of achieving optimal inventory targets.eProc is able to bring benefits to PLN such as the standardization of procurement processes,

transparency and efficiency of better procurement, availability to provide estimated-own-prices information in the PLN’s internal, and support the responsibility of the procurement processes. Some constraints in the implementation of eProc can be solved with commitment to the entire executive management and goods/services provider in using eProc as a means of goods/services procurement in PLN, to socialize and make gradual simplification of the procurement process, to use the latest IT technology and develops application which is flexible.

The scope of eProc PLN divided into 3 (three) major needs, including: Cataloging Information System, Supply Chain Management (SCM) System, eProc PLN Portal. In Cataloging Information System is a fulfillment of the needs for creating a database catalog of materials (MDU, spare parts, SCADA, Power Generation, Fuel, etc.); Cataloging IS also shares information about inventory, stock, unit price, own-estimated-price, list of suppliers; From Cataloging IS, we can compile a list of materials procurement plan. In the SCM system needs, there are some manifestations of materials procurement curement through inter PLN’s unit exchange, also goods/services procurement through e-bidding and e-auction. While facilities of eProc Portal is an attempt to provide hosting portals to other parties who wish to use the procurement services of goods/services, providing promotional services and advertising through eProc Portal, and become the provider of procurement information. During the years of 2005-2008, eProc recorded saving for 4.56% of Own-estimated-price (HPS) realization, which is Rp.249,40 Billion and savings of Rp. 1,6 Trillion of Budget Plan Realizatin (Realisasi RAB – Rencana Anggaran Biaya) to Total RAB.

The total procurement which has been realized throgh eProc for 4 years is as much 3352 procurement of 5071 total procurement plan or 66,1%. The number of realization of procurement conducted through eProc of the total procurement plan tends to increase from year to year with an average 63.91% growth rate for the realization of procurement annually.
Meanwhile, in the year 2007, there was a decline in growth of 5.89%. In the year 2008, eProc recorded savings of Rp.90,8 Billion or 4.91% based on Own-estimated-price (HPS) acquisition of the HPS realization and recorded savings of Rp. 457,9 Billion or 8.06% for the Realization of Budget Plan (Rencana Anggaran Biaya-RAB).

Emphasis on the Own-estimated-price (HPS) can be achieved with the implementation of e-Auction on procurement in the public auction, the general selection, and others. E-Auction is a delivery of bidding price technique through eProc PLN which the price is already delivered and competed in bargaining between vendor/suppliers during the specified interval time. Eproc PLN is a representation of Presidential Decree No.080 of year 2003 about Guidelines for Procurement of Goods/Services in Government, so that the eProc implementation can be used as a reference (benchmark) for the Government Agency or other State Companies later.
(Tim eProc PLN – eP&PNA)

"e-PROCUREMEN PT.PLN (PERSERO) adalah salah satu program yang sangat membantu PLN, untuk mendukung implementasi
GCG dalam mewujudkan transparansi, control, keadilan
(fairness), penghematan biaya dan mempercepat
proses pengadaan, juga mencegah korupsi dan
pada gilirannya meningkatkan Citra Perusahaan"

Fahmi Mochtar

DIRUT PT PLN (Persero)

          e-Procurement development, this              application is able to support

the realization of a better performance of internal PLN. Own-estimated-price realization savings to the Total RAB (Realization of Budget Plan) and Total HPS (Own-estimated-price) is one indication of the success of the application. In the terms of procurement publications in mass media printing, eProc able to contributes well to provide savings for Rp.6,6 Billion per year with per-year average procurement is 660 pieces, and the average cost-per-publication is Rp. 10 Million.

With user growth in 2008, i.e more than 12000 external users (prospective supplier of goods/services), more than (prospective supplier of goods/services are still conducted verification, there are business opportunities that could make the systems and applications as one profit center of the PT.PLN (Persero). Among these are:
• Advertise remain in E-Procurement portal (corporate advertising or marketing) with the user growth forecast is 20% per year until the year 2011);
• SMS Mobile’s leading provider of procurement announcements related to the specific information, the procurement progress, until the appointment of the winner;
• Working closely with the information search site (with the number of hits 20,000 hits per day to hit growth forecast us 10% per year until 2011), and make it into the concept of marketplace;

The portal can be also hosted by another company that wants to procure, without having to build the network infrastructure and application, only by working together wit PT.PLN (Persero) in providing such services to be able to achieve efficient management of goods/services procurement.
That is a capital to develop eProc PLN becomes better. If eProc can be one of PT.PLN (Persero) profit center, it is be possible to be developed to become a business unit or subsidiary ot PT.PLN (Persero) which is capable to internal procurement, e-commerce, and some external business section (Tim eProc PLN—eP&PNA).