Development of business processes on sustainable procurement based on identification of policy and institutional factors in the LRT TOD apartment project

. Sustainable procurement through construction procurement has considerable potential to advance a project's sustainability strategy in which the procurement of products, equipment, machinery, and services is an important aspect, especially in high-rise buildings. One of the main factors is the lack of policies and support from organizations for the proper and precise implementation of sustainable procurement. Currently, there are no structured guidelines for compiling business processes that are in accordance with project conditions in LRT TOD Apartments. The purpose of this research is the development of business processes for sustainable procurement based on identifying policy and institutional factors in the LRT TOD Apartment Project. The method in this study used three procurement experts to validate policy and institutional factors. With the expert's assessment, various factors were obtained on sustainable procurement policies and institutions, which could become the basis for business process development. The results of this study show that the existing procurement business process is improved based on integrating policy and institutional that correlate with each other to develop a sustainable procurement business process model for the LRT TOD apartment project.


Introduction
The worldwide construction market is expected to grow to USD 8 trillion by 2030.Indonesia is expected to overtake Japan as the world's fourth-largest building market in the same year [1].The Gross Domestic Product (GDP) of the construction sector contributes up to 10.44% of the national Gross Domestic Product (GDP), which reaches IDR 16.97 quadrillion [2].
According to Ruparathna and Hewage [3], public procurement has considerable potential to advance a country's sustainability strategy.In the same respect, the national sustainability goals can be increased, primarily through construction procurement.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 [4].Sustainable Procurement (SP) helps achieve this goal by integrating the principles of corporate social responsibility into the procurement decisions of all parties involved in implementing construction projects [5].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 goals [6].
The main advantages of implementing sustainable procurement into a project include increasing operational productivity, reducing costs, complying with sustainability regulations, minimizing waste, and aligning core business activities with sustainability objectives [7].
In 2021, there will be a slight increase in the number of companies that have an explicit sustainable procurement policy or intend to do so, as described in Fig. 1, of which 34 of the 39 United Nations agencies that submitted reports have either adopted a new or existing policy or are planning to do so by the year 2022 [8].The United Nations Environment Program (UNEP) stakeholder survey shows that top-down policy and leadership are the main forces behind sustainable procurement.The three main factors that influence the implementation of sustainable procurement are the availability of policy commitments, national laws on Sustainable Procurement, and solid political and organizational leadership [6].
One of the factors preventing proper Sustainable Procurement initiatives at all levels of the organization is the lack of management policies and commitment [4].Binding laws and regulations primarily support sustainable procurement.The supply chain plays a dynamic and active role in the project because sustainability is a matter of policy [9].
According to Ershadi et al. [4], Barriers to sustainable procurement refer to barriers in processes and structures that might cause the failure of sustainable procurement goals in construction organizations.These obstacles are inadequate collaboration, insufficient enforcement of sustainability regulations, lack of consensus regarding sustainability values among stakeholders, and lack of management commitment to sustainability.
Transit Oriented Development (TOD) is considered one of the most sustainable types of urban development because it promotes public transportation while minimizing the use of private vehicles.That is a concept that can help many governments urban policies in achieving results, as well as other programs that are more sustainable.In particular, this is a more environmentally and socially responsible strategy [10].Regulation of the President of the Republic of Indonesia Number 16 of 2018, regarding the procurement of goods and services, has stated several objectives of the procurement of goods/services, one of which is to encourage sustainable procurement.While to achieve that goal, procurement must be carried out sustainably, which can be called sustainability procurement [11].Referring to the mandate function of the Government Goods/Services Procurement Policy Agency, conditions for implementation and/or achievement of sustainable procurement are unclear [12].So that with projects that carry the TOD concept as sustainable development, it is better if part of the construction program is included for sustainability, one of which can be in the form of developing a sustainable procurement business process.Against this background, the purpose of this research is the development of business processes for sustainable procurement based on the identification of policy and institutional factors in the LRT TOD apartment project.

Sustainable procurement
Sustainable procurement is defined as incorporating standards and criteria into procurement conventional to be consistent with environmental protection, societal advancement, and economic growth through resource efficiency, product and service quality improvement, and lifetime cost optimization [13].Sustainable procurement is a procedure for purchasing products and services to provide companies with the most value for money and benefit the entire economy while causing the least environmental damage [14].

Policy
The policy is a broad limitation or guideline that determines the direction of activities carried out and regulations that the actors and implementers of the policy must obey.As traditional patterns, governments or institutions equally recognize that policies are concerned with organizations' control concept and help them work towards their goals [15].

Government regulations/policies/laws
One crucial policy tool that can assist the government in achieving sustainable development and protecting the environment is sustainable public procurement [14].With recommendations to make sustainable public procurement a necessary component in policy-making by incorporating environmental factors into public procurement, government laws are an essential supporter of sustainable procurement in public organizations to build policy tools for sustainable public procurement [16].

Organizational regulations/policies
Implementing sustainable procurement is hampered in many construction organizations by insufficient internal knowledge or experience in selecting environmentally friendly products or services and problems integrating aspects of sustainable procurement policies into current company policies [17].

Contract
Every procurement has a contract at its heart that spells out and protects all the rights and obligations of all parties involved in delivering the desired value to the customer.Contracts for delivery 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].The quality of contracts results from negotiation procedures, making market discourse and sharing of experiences through an iterative interdisciplinary process very effective in promoting increased circularity in public procurement.Developing technical, legal, and economic competence within the procurement department or staff is the basis for a successful circular public procurement contract [19].

Institutional
Within institutions, in order to successfully implement sustainable procurement, important institutional principles must be incorporated throughout the life of services and products.Aligning sustainability values with institutional values has also been shown to have a beneficial relationship with implementing and performing sustainable procurement by ensuring organizational commitment to this transformation.Institutional drivers to achieve sustainable procurement include having effective and efficient policies and providing proper training and direction [20].

Management/leader commitment
People-centered solutions for a proactive culture of innovation in business change the organization's view of technological progress because sustainable procurement involves people (users) in the organization.For example, in a technologically evolving environment, leadership commitment and support can significantly impact the adoption of sustainable procurement.An adaptive project culture encourages team members' openness to change and creativity.Leadership commitment is a critical enabler in creating a project environment that encourages acceptance of new ideas [21].Therefore, top management's commitment to sustainability, management support for green procurement, and considering all the benefits of green materials above their premium costs form the cornerstone of Sustainable Procurement [22].

Organization/institution/company
At the corporate or sectoral level, a culture of sustainability is shaped by the confluence of beliefs, values, norms, and attitudes.Building a strong culture and upholding a high level of related ability helps align buildings, people, and processes to maximize value and achieve sustainability goals.A better industrial culture aids the spread of sustainable procurement throughout the construction supply chain.The project manager must coordinate sustainable procurement principles with the organizational culture, strategy, and processes to ensure that sustainable procurement is accepted as an essential component of a construction company [4].The most critical value created by sustainable procurement is the improvement of the company's sustainability performance, which includes economic, social, and environmental dimensions [23].

Research methods
This research method begins with a literature review from previous research.There is a questionnaire, an instrument consisting of variables, sub-variables, and indicators used to measure sustainable procurement factors, and will be used for expert interviews.These questionnaires will be data collection materials using the Delphi method to validate factors on research variables and indicators.The Delphi Method aims to get the most reliable and reasonable opinion from a group of experts through a questionnaire with opinion feedback [24].This data collection will involve three experts [25] with at least five years of experience in procurement construction projects, as in Table 1.After the policy, institutional, and sustainable procurement factors have been validated, then the next step is to take the business process procurement data from the existing form, then design a business process sustainable procurement based on input from experts and the correlation between policies and institutional.Where this flow is shown in Fig. 2.

Validation of policy and institutional factors in sustainable procurement
Based on the results of interviews with experts, namely three experts who are experienced in the field of procurement in construction projects, to validate factors in policies and institutional in sustainable procurement, the results are shown in Table 2. Score 1 indicates reasoning agree, and score 0 indicates reasoning disagree.The accumulation of scores with a value of 2 or 3 means that the factor is declared accepted.If the accumulated number of scores has a value of 1, then the factor is declared not accepted.
On the Organizational Culture indicator, P1 argues that the culture of the procurement division depends on a variety of users, but P2 argues that the benefits obtained by implementing sustainable procurement can be a company motivation, then P3 argues that the implementation of sustainable procurement can be adjusted to project capabilities and habits.In the Green label resource indicator, P1 argues that only office buildings are needed, and apartments are still not needed, but P2 argues that using environmentally friendly materials is one way to support the sustainable procurement program.In the indicator of Environmentally friendly materials with a green label scheme, P2 argues that company policies can apply this and can be applied to existing projects included in contracts with existing vendors.However, P1 argues, there will be many considerations, namely adjusting to the list of project materials and whether innovations from the material are still conventional or environmentally friendly.The involvement of decision-makers in developing sustainable development strategies and political commitment are factors that encourage the integration of sustainable development into procurement.Implementing sustainable procurement policies or processes may be feasible if sustainable development related issues are considered through clear plans and strategies with measurable objectives tailored to administrative needs.Responsible procurement requires regulations conducive to sustainability, while regulations significantly encourage sustainable procurement practices [34].
According to Testa et al. [35] in El Haddadi et al. [34], regulation is considered a critical factor in sustainable procurement implementation, which shows that regulation facilitates the implementation of sustainable procurement strategy by authorities (institutional).

Business process discussion
A business process is a set of business activities put together to create added value that is taken in response to a particular job to produce an output [36].The creation of a business process for sustainable procurement is based on the input of three experts, which was improved from the business process procurement of existing companies and is also based on validated policy and institutional factors.According to P1, business processes from an existing need to be added to financial reports in the form of balance sheets and profit and loss (financial documents), technical, administrative, financial comparisons with financial capabilities, expertise certification involving experts (technical documents), project planning/budgeting, project proposals before project budget estimate plan.The document chart is divided into three: technical, financial (audited reports), administration (construction business permit services, company certificates, ISO), and vendor-approved list/sub-contractor-approved list updates after master data is needed.Then, according to P2, to develop business processes, it is necessary to compare procurement technicalities after the procurement process (conventional procurement and E-Procurement) and then the appointment process.According to P3, the need for signatures by all directors and managers is a form of support for sustainable procurement.
Based on the relationship between policies and institutions, the dedication of senior managers to enforce the proper procedures can inspire the entire organization to practice sustainable procurement.Policies set by regulatory agencies at higher levels also influence sustainability outcomes [4].According to Celiani et al. [37], the ability of an organization to achieve the goals stated in the policy will depend on how well the policy is implemented.Therefore, it is estimated that when business organizations and their employees are aware of this policy, it will positively impact and encourage sustainable procurement [38].So that in realizing a policy with integration through institutions, a business process for sustainable procurement is developed.
Fig. 3 shows the shape of the sustainable procurement business process flowchart based on input from three previously interviewed experts.The study's results highlight that a sustainable procurement process with the support of existing (conventional) procurement systems can develop systems that serve better purchasing decisions concerning supplier assessment for procurement.A sustainable procurement strategy provides a basis for managing challenges arising from social and environmental factors not generally considered in traditional procurement [39].The creation of a sustainable procurement policy and the implementation of the sustainable procurement process will be a benchmark for the running of the sustainable procurement program.Several controlling instruments for implementing sustainable procurement can be used, such as due diligence, making statements, integrity pacts, certification, audits, and manufactured local content level lists [11].These instruments are already included in the formation of business processes.The policy and institutional factors in Table 2 have all been integrated into the business process components, where these factors are embodied in each sustainable procurement process chart.These factors are interconnected in business processes because all aspects are vital for successfully implementing sustainable procurement.To demonstrate this, national policies backed by institutional rules are essential for articulating a company's vision.Business processes are needed to provide information for developing guidance for procurement experts and educating organizations about the benefits of sustainable procurement [40].

Conclusion
These policy and institutional factors form the foundation for developing a sustainable procurement business process and increasing the level of conventional procurement processes to become sustainable procurement that can be implemented into the LRT TOD apartment project construction process.By integrating the correlation of factors between policy and institutional and considering the alignment between policy and institutional, which are the main drivers of sustainable procurement.The development of a business process that was originally from conventional procurement and then improvised into a sustainable procurement business process can be used as a guideline in implementing sustainable procurement within the current LRT TOD apartment project.
The author would like to thank the experts who have helped facilitate the collection of data used in this paper.Our appreciation goes to the anonymous reviewers for their time and hard work.

Table 2 .
Policy and institutional factors.