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

. 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.


Introduction
In the construction sector, procuring products, equipment, machinery, and services is essential to the project.Obtaining construction project materials and equipment from sources other than the construction organization presents several issues that must be addressed and managed throughout the project life cycle [1].Currently, the procurement paradigm is broader by taking social and environmental aspects, not only based on economic aspects such as the low price of goods/services purchased.Procurement is clearly related to these three factors and gave rise to the idea of Sustainable Procurement practices.This procurement idea is to improve the wheels of the domestic economy and implement policies in various fields that affect economic, social, and ecological conditions [2].Sustainable procurement helps achieve this goal by integrating the principles of corporate social responsibility into the procurement decisions of all parties involved in implementing construction projects [3].Sustainable procurement can help or function as the primary method to achieve various organizational or government goals, which policies will be achieved through this.Efficiency, sustainable development, sustainable consumption, and sustainable production are among the strategies and objectives [4].
One of the factors preventing proper Sustainable Procurement initiatives at all levels of the organization is the lack of management policies and commitment [1].As a policy instrument for promoting green innovation, sustainable procurement is still in its early stages for this [5].Binding laws and regulations largely support sustainable procurement.The supply chain plays a dynamic and active role in the project because sustainability is a matter of policy [6].
As proposed by [4], which causes of obstacles to sustainable procurement are a lack of policy commitment/target action, lack of intense political and organizational leadership on sustainable procurement, lack of sustainable procurement regulations/laws on mandatory procurement, evaluation, and inadequate enforcement of sustainable procurement policies, and lack of training of procurement staff in sustainable procurement.
This study aims to find the influence of policies and institutional on sustainable procurement in the LRT TOD Apartment Project and to prove the correlation between policies and institutional on sustainable procurement.

Sustainable Procurement
Sustainable procurement is needed to address the three pillars of sustainable development (economic, social, and environmental).The notion of Sustainable Procurement has been regularly used in the literature to influence the market and non-market activities to achieve economic sustainability [7].Sustainable procurement defines as the process by which organizations meet their needs for goods, services, jobs, and utilities in a way that achieves overall value for money in terms of generating benefits not only for the organization but also for society and the economy while minimizing damage to the environment [6].Sustainable procurement was created to make building procurement more sustainable.Sustainable procurement incorporates standards and criteria consistent with environmental protection, societal advancement, and economic growth through resource efficiency, product, and service quality improvement, and lifetime cost optimization [8].

Policy
A series of policies implemented in the procuring and delivering of construction projects impact their sustainability results [1].The country's vision and road map for addressing sustainability issues in every field, including procurement, must be included in the policy [9].Empirically, the policy is defined as a series of actions produced by an organization with a specific purpose, followed, and implemented by a person or group of actors to overcome specific problems [10].

Organizational Regulations/ Policies
Implementing sustainable procurement is hampered by construction organizations with insufficient experience choosing environmentally friendly goods/services and problems integrating sustainable procurement policies into current company policies.[12].With indicators ORP1 = Organizational sustainability policy/green procurement program/staff training [12] ; [7] ; [15], ORP2 = Implementation of sustainable goals to job description & incentive programs for skilled staff [12] ; [15].

Contract
In the procurement process, a contract must detail and protect the rights and obligations of all parties involved in providing the desired value to customers.The contract must address the concept of sustainability, define sustainability as a top priority, and incorporate sustainability standards into the terms and conditions of the contract [18].With indicators CON1 = Compliance with contracts, organizational requirements & standards [15] ; [5], CON2 = Contract Quality [5].

Institutional
Within institutions, in order to successfully implement Sustainable procurement, important institutional principles must be harmonized.Aligning sustainability values with institutional values has also proven to have a beneficial relationship with the implementation and performance of Sustainable Procurement by ensuring the organization's commitment.Institutional drivers to achieve Sustainable procurement include having effective and efficient policies and good direction within the organization [19].

Management/Leader Commitment
The proactive culture of innovation in business changes the organization's view of technological progress because sustainable procurement involves users within the organization.In a technologically evolving environment, leadership commitment and support can significantly impact the adoption of Sustainable Procurement.An adaptive project culture encourages team openness to change, and leadership commitment is vital to creating a project environment that encourages new ideas [20].With indicators COM1 = Leader support [8] ; [15] ; [12] ; [16], COM2 = Internal stakeholder influence [21], COM3 = Management Hierarchy Levels [16].

Organization/Institution/Company
At the corporate level, a culture of sustainability is shaped by beliefs, values, norms, and attitudes.A better culture aids the spread of sustainable procurement throughout the building supply chain.The project manager must coordinate the principles of Sustainable Procurement with the organizational culture, strategy, and processes to ensure that Sustainable Procurement accepts as an essential component of a construction company [1].With indicators, ORG1 = Organizational culture [15], ORG2 = Focus preference and company motivation [15] ; [22], ORG3 = Company performance [21], ORG4 = Vision in the corporate environment [12].

Research Method
This research method is a survey of respondents, a questionnaire containing the responses of actors or workers in the field of procurement in the LRT TOD apartment project on the influence of policies and institutional on sustainable procurement.The questionnaire is a list of written questions, the answers of which are recorded by the respondents.In the questionnaire, the respondent reads the question, interprets what is expected, and then writes down the answer [23] using the media in the form of Google Form.A summed rating scale, better known as a Likert scale, assumes that each statement/item has the same attitude value importance in terms of reflecting attitudes toward the problem in question [23].Respondents in the study were asked to indicate how important they were to the research findings [24].In this study, respondents could choose one of the following answers to the questions in the questionnaire: 1 = Not important (NI) to 5 = Very Important (VI) [6].The sampling technique used was non-probability sampling in the form of purposive sampling.Purposive sampling has the main character when the sample members are explicitly selected based on research objectives [25].The number of samples obtained is 125 respondents with the provisions of the criteria of respondents who will be involved in this study who have at least one year of experience in procurement in construction projects, stakeholders in the construction field, and have a minimum Diploma education.This study analyzes the data assisted by PLS-SEM (Partial Least Square -Structural Equation Modeling) with the calculation process using SmartPLS software.

Discussion
The PLS-SEM model in this study is a second-order model or a model with two levels of variables that still uses multi-factor analysis because of the multilevel variables and subvariables and indicators.When calculating the second-order model, a two-stage approach showing better calculation parameters is better.In the opinion [26] in [27] recommends a two-stage approach, one of the forms put forward by [28] is an embedded two-stage approach, so the second-order PLS-SEM analysis in this study will use an embedded twostage approach.

Stage 1: Test the Validity and Reliability of Sub-Variables on Indicators
Stage 1 is as follows: Create a model according to the hypothesis, Estimate by making high order variables, and their dimensions and measurement items that measure dimensions, Then dimensional measurement items are also used to measure high order variables, Estimation, and evaluation of measurement models at the dimension/first-order level ( Loading Factor, Composite Reliability, AVE, Discriminant Validity), creates a Latent Variable Score (LVS) for the dimensional score to be used in stage 2. Evaluation of the measurement model contained in stage 1 focuses on causality between sub-variables / first order with indicators as shown in Figure 1 [29], which in this analysis begins using the repeated indicator method.Convergent Validity, which in this study uses a reflective indicator model, this measurement is seen from the value of the loading factor with an expected value of ≥0.7.However, according to [30], with the rule of thumb Convergent Validity, the loading factor value is still 0.6 -0.7 acceptable, supported by theory [31], where a loading factor value of 0.4 -0.7 can be considered, as shown in Table 1.Discriminant Validity compares the loading value on the intended construct, which must be greater than the loading value with other constructs.
It can be seen whether the construct has sufficient discriminant, namely the value of the crossloading factor [32], as shown in Table 2. Internal Consistency Reliability with the rule of thumb Composite reliability value > 0.7 and AVE value > 0.5 [31] as shown in Table 3.   1 shows that all the loading factor values for the sub-variables for the indicators have all been fulfilled.In case it can accept what was stated by [30] with a value limit of 0.6 -0.7 and theory from [31] for a loading factor value of 0.4 -0.7 can still be considered for acceptance.In Table 2, it can be seen that all the discriminant validity values for the dimensions of each sub-variable have all been fulfilled, where it can be seen in the cross-loading section that the sub-variables for the intended indicator have a greater value than the indicators in the other indicators.Table 3 shows the results of the reliability test with analysis of Composite reliability and AVE, which for all sub-variables are above the standard criteria where the value for Composite reliability is > 0.7 and the AVE value is > 0.5 [31].Similarly to Stage 1 in Table 4, it can be seen that all the loading factor values for the sub-variables on the indicators have all been fulfilled.In this case, it can be accepted according to [30] with a value limit of 0.6 -0.7; in theory, from [31], a loading factor value of 0.4 -0.7 can still be considered for acceptance.Table 5 shows that all discriminant validity values for each sub-variable have been fulfilled.The cross-loading section shows that the main variable for the intended sub-variable has a greater value than the sub-variables in the other sections.Table 6 shows the results of the reliability test with analysis of Composite reliability and AVE, which for all variables are above the standard criteria for Composite reliability > 0.7, AVE > 0.5 [31].

6.2.2.
The inner model evaluation.One of the item components that is a criterion in assessing the structural model (inner model) is the R-Square value or the coefficient of determination.The R-Square value or the coefficient of determination helps measure the degree of variation in the independent variable and change in the dependent variable.R-Square values of 0.75, 0.50, and 0.25 indicate that the model is strong, moderate, and weak [33].R-Square represents the X variable explained in each Y variable and measures the model explanatory power [34].Table 7 shows that the R-Square value or the coefficient of determination for all the main variables is found to be the value for an institutional variable as a moderate value and the value for sustainable procurement as a high value.The magnitude of the effect of Policy on Institutional is 66.8% [33], including moderate influence.The influence of Policies and Institutional on Sustainable Procurement is 80.2% [33], including strong influence.

Hypothesis testing
In this study, three hypotheses were obtained, also the mediation hypothesis.The results of the hypothesis testing are obtained from the T statistics and P values, as shown in Table 8 and Table 9.  8, The policy variable significantly influences institutional variables, which can be seen from the t-statistic value of 20,454 > 1.96 above the standard t-statistic value, which is > 1.96.Then it can also be measured through the P value with a value listed as 0,000 <0.05.Following the standard, the P value is <0.05, so any variable policy changes will significantly improve the institutional variable.It can also be seen from the path coefficient, which is close to 1 and worth 0.817, indicating that the relationship between Policy and Institutional has a positive effect.So the hypothesis is accepted.Policies set by regulatory agencies at higher levels also influence each other [1].Therefore, it is estimated that when business organizations understand a policy, this will have a good impact and encourage sustainable procurement [35].
Second, based on what is shown in Table 8.Policies significantly influence sustainable procurement, seen from the t-statistic value of 2.751 > 1.96 above the standard t-statistic value of > 1.96.Then it can also be measured through the P value with a value of 0.006 <0.05.According to the standard, the P value is <0.05, so any policy changes will significantly increase Sustainable Procurement.It can also be seen from the path coefficient above -1, worth 0.338, indicating that the relationship between policy and sustainable procurement has a positive effect.So the hypothesis is accepted.From these results, it can be interpreted that most of the construction sector emphasizes that laws or policies from the government or organizations are the main force behind sustainable procurement and agree that it is ultimately necessary [36].The better a policy, the easier it will be to implement sustainable procurement.
Third, based on what is shown in Table 8, institutional variables significantly influence sustainable procurement.It can be seen from the t-statistic value of 5.152 > 1.96 above the standard t-statistic value, which is > 1.96, then it can also be measured through the P value with the value listed 0.000 < 0, 05.According to the standard, the P value is <0.05, so every institutional change will significantly increase Sustainable Procurement.It can also be seen from the path coefficient close to 1, which is worth 0.598, indicating that the institutional relationship to sustainable procurement has a positive effect.So the hypothesis is accepted.From these results, it can be interpreted that the more changes in institutional patterns toward sustainability, the easier it is to implement Sustainable procurement.From [14], adapted by [37], it is stated that institutions are practitioners who will apply directly related to Sustainable Procurement.Based on Table 9 in the mediation test, the policy has a significant indirect effect on sustainable procurement through Institutions with a value of 0.489 with a t-statistic value of 4.778 > 1.96 and a P value of 0.000 <0.05.Institutional variables play a significant role as a variable that mediates the indirect effect of policies on sustainable procurement.

Conclusion
This study confirms the influence of policy and institutional on sustainable procurement in the LRT TOD apartment project.Policies get a significantly positive effect on Institutional.And then Policies have a positive effect on sustainable procurement significantly.Institutional towards sustainable procurement has a significant positive effect.Policies have a significant indirect effect on sustainable procurement through Institutions.With the synergy between policies and institutions where policies indirectly affect sustainable procurement, sustainable procurement can be carried out properly through institutional mediation.It can be said that the institutional is a catalyst to bridge the implementation of sustainable procurement towards policy, or it can be said that institutional is a practitioner to apply policy factors into Sustainable Procurement.

Figure 1 .
Figure 1.The PLS-SEM model of stage 1

6. 2 .
Stage 2: Test the Validity and Reliability of Variables on Sub-Variables Stage 2 is as follows creating a model according to the hypothesis.However, the variable / high order is measured by the dimension LVS score created from Stage 1, where the data recorded at stage 1 is made LV so that the sub-variables have a weighted value and are used as indicators for The main variables.And then estimate the model and evaluate the measurement model and structural model, as shown in Figure 2 [29].

Figure 2 .
Figure 2. The PLS-SEM model of stage 2 6.2.1.The outer model evaluation.Testing the outer model at stage 2 is the same as stage 1, where the tests carried out are Convergent Validity, Discriminant Validity, and Internal Consistency Reliability.

Table 1 .
The result of the convergent validity test

Table 2 .
The result of the cross-loading test

Table 3 .
The result of the reliability test

Table 4 .
The result of the convergent validity test

Table 5 .
The result of the cross-loading test

Table 6 .
The result of the reliability test

Table 7 .
The result of the R-square test

Table 8 .
Hypothesis results

Table 9 .
Mediation test results