Articles

The Influence of Industrial Regulations, Strategic Alliances, and Market Competition on Perceived of Firm Performance (Case Study of a Private Construction Sector Companies in Balikpapan)

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Providing infrastructure is one of the fundamental sectors that must be realized in the context of economic development so that general prosperity can be achieved. In its implementation, the Government has determined projects that fall into the National Strategic Project (PSN) category, the aim of which is to meet basic needs and improve community welfare. Kalimantan Island in particular has 13 projects with a total investment value of Rp. 240.3 trillion. Funding for basic infrastructure and connectivity projects comes from the government, government-private partnerships, state-owned companies and the private sector. One of the main regulations is the public-private partnership (PPP) policy, which allows BUMN and private companies to work together in developing strategic projects. Poor governance in state-owned enterprises hinders effective collaboration with private companies in the Balikpapan construction sector, primarily through capability, resource and politicization gaps that affect industry regulations, market competition and strategic alliances. This research uses a survey method to collect data using a questionnaire. Sampling was carried out using a non-probability method with a purposive sampling approach. The sample in this study consisted of 31 respondents who were company representatives or directors or top managers of private companies in Balikpapan City which formed alliances with other private companies when participating in National Strategic Projects. This research uses SEM-PLS with the SmartPLS 3.0 application tool. Based on the results of this study and the discussion that has been carried out, the following conclusions can be drawn: Industry regulation affects financial performance, industry regulation affects customer performance, industry regulation affects business process performance, industry regulation affects learning and growth performance, strategic alliance affects financial performance, strategic alliance affects customer performance, strategic alliance affects business process performance, strategic alliance affects learning and growth performance, market competition affects financial performance, market competition affects customer performance, market competition affects business process performance, market competition affects learning and growth performance, and overall that industry regulation, strategic alliance, and market competition have significant influence on perceived performance of private companies in Balikpapan construction sector.

Evaluating the Impact of Mini-Competition on Pharmaceutical Procurement: Challenges, Risks, and Regulatory Implications in Indonesia

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This study evaluates the impact of the mini-competition method in pharmaceutical procurement in Indonesia, focusing on its challenges, risks, and regulatory implications. Mini-competition, a procurement method designed to promote competitive pricing in e-purchasing, has been introduced to streamline the procurement process, especially for essential goods such as pharmaceuticals. However, this method faces legal and practical challenges, including risks of fraud, reduced competition, collusion, and issues concerning product quality and innovation. The legal framework governing mini competition, including Presidential Regulation No. 12 of 2021, is analyzed to identify potential weaknesses in ensuring transparency and accountability.

The research also includes a case study of pharmaceutical product procurement, highlighting the significant price reductions resulting from mini competition but revealing adverse effects on industry sustainability. The analysis of the cost structure of pharmaceutical companies shows that continued price reductions may force companies to cease operations due to unprofitability. Drawing on international case studies, this study concludes that while mini competition can lower procurement costs, it also poses significant risks to product quality, innovation, and market competition. Traditional tender methods are proposed as a more balanced and sustainable approach for pharmaceutical procurement, emphasizing the need for transparent and comprehensive evaluation criteria.