Influence of Policy and Institutional on Sustainable Procurement in The LRT TOD Apartment Project

Department of Civil Engineering, Universitas Indonesia, Kampus UI Depok 16424, Indonesia

^* Corresponding author: danurwendho.fikri@gmail.com, rossyarmyn@gmail.com

Abstract

The procurement paradigm is broader by taking social and environmental aspects, not only based on economic aspects like the low price of goods/services purchased. Sustainable procurement can be the primary method to achieve various organizational or government goals, which policies will be achieved through this. Policy and institutional are the main forces behind sustainable procurement. Three main factors influencing the implementation of sustainable procurement are the availability of policy commitments, national laws on sustainable procurement, and solid political and organizational leadership. Barriers to sustainable procurement refer to the lack of adequate regulations and institutional leadership, which may lead to the failure of sustainable procurement objectives in construction organizations. To overcome these obstacles, necessary to analyze the relationship between policy and institutional toward sustainable procurement. This study aims to analyze the relationship between policy and institutional that influence sustainable procurement in the LRT TOD apartment project. The method in this study uses data analysis in the form of PLS-SEM with SmartPLS software. The sample of research is 125 respondents in construction procurement. The study results show that policies have a positive effect on institutional, policies have a positive effect on sustainable procurement, and institutional have a positive effect on sustainable procurement.