Int. J Sup. Chain. Mgt Vol. 8, No. 6, December 2019 595 Making Dual Procurement and Supply Chain Operations: Cases in the Indonesian Higher Education Agus Sunarya Sulaeman 1 , Budi Waluyo 2 , Hapzi Ali 3* 1 Department of Financial Management, Polytechnic of State Finance STAN, Jakarta, Indonesia. 2 School of Business, University of Leicester, Leicester, United Kingdom 3 Department of Post Graduate Program, Univeristas Mercu Buana (UMB) Jakarta, Indonesia my.paper03@gmail.com Abstract— A high performing procurement and supply chain function is vital to the success of running a safe, productive and efficient educational organisation, and can make a significant contribution to both financial and operational performance Higher education institutions in Indonesia have experienced significant changes since the introduction of the semi- autonomous agency model. In the context of procurement, these agencies adopt both Government Procurement Procedure issued by the central government for all government institutions and Special Procurement Procedure prepared by the agency. Consequently, the agencies have to implement two different procurement procedures in accordance with each procedure. This study deeply looks at the implementation of the dual procurement procedures at a micro level in the context of gentrification. This research focuses on examining the use of dual procurement procedures in supporting through an exploration of the experiences of higher education in Indonesia. A central feature of procurement in the Indonesian higher education is unnecessary dual procedures. Higher education institutions have experienced many constraints in developing and implementing dual procurement procedures. The internal factors include risk, human resources, quality, and organizational structure, while external factors consist of the audit, political pressure, and regulation. Keywords— agencification, autonomous agency, higher education, procurement and supply chain strategy 1. Introduction Procurement teams are good neighbors with their counterparts in supply chain management. The public sector adds a layer of complexity due to the nature of service delivery. In particular, higher education is both a key public service provider and consumer with expertise in teaching and research. Meanwhile, the financial inflexibility encourages the civil service organization to become autonomous, so called ‘agency’ or quasi autonomous non-governmental bodies – quangos [1-15]. The number and the importance of autonomous agency have expanded in almost all countries and following the global trend, the Indonesian administration has extensively implemented the agency model since 2005 [4, 16-20]; [21-23]. Agency is identified as a set of institutions, or structures for delivering public services proposed by government actors [5] and has some autonomy from their respective ministry in policy decision making and over personnel, financial and managerial matters [6] including business plan and budget [4], accounting system [4], costing system [7] and organization structure [8]. Many have claimed the encouraging effects of agencification in which agencies would be more professional, their management would be more business-like, and they would offer higher quality services compared to traditional government bureaucracy Osborne and [9]; [10] as they have a minimum standard of service delivery [7]. Besides better output quality, agencies are expected to be more efficient public service providers [10]; [19]. Indonesian public service agencies beginning to work with the bureaucratic approach are driven to implement the business-like approach by adopting new financial management [4]. Since 2005 the Indonesian government has been implementing financial management model of Public Service Agency (Badan Layanan Umum, BLU) for the particular government institution which is primarily responsible for providing public services [4]. Agencification has been a major approach under the Yudhoyono administration [11]; [17]; [18]. In the period 2005 to 2014, there were 689 agencies established in Indonesia consisting of 150 central agencies and 539 local agencies. (see Figure 1). ______________________________________________________________ International Journal of Supply Chain Management IJSCM, ISSN: 2050-7399 (Online), 2051-3771 (Print) Copyright © ExcelingTech Pub, UK (http://excelingtech.co.uk/)