Home Minister, LKPP Head Issue Circular to Speed Up Procurement in Regions

Minister of Home Affairs Tito Karnavian. Photo by: PR of Cabinet Secretariat.

Minister of Home Affairs and Head of the National Public Procurement Agency (LKPP) on 11 May 2021 issued a Joint Circular on the Acceleration of Goods/Services Procurement in Regional Financial Management.

“We signed the Joint Circular on 11 May and we have agreed on six areas as guidelines for regional governments,” Minister of Home Affairs Tito Karnavian said, as quoted by the Ministry’s website, Wednesday (02/06).

The Minister expressed hope that procurement of goods and services in the regions is carried out with the principle of good governance, so that the Regional Budget can be used on target in order to achieve development that benefits the people.

Accountable procurement of goods and services, he added, is also expected to boost the competitiveness of domestic products and strengthen the production power of micro, small and medium enterprises (MSMEs).

Tito also said that regulations and guidelines in the Circular aim to prevent moral hazard, but the Circular should not become an obstacle for accelerating the Government’s spending.

The Minister also stated that the Government’s spending at the national and regional levels is the backbone of national economic growth and is central to provide stimulus for private sector spending.

Tito went on to say that Ministry of Home Affairs continues to support regional governments to accelerate the realization of their spending to provide more money circulating in communities, improve purchasing power at the household level, and boost national economic growth.

The Minister also ordered regional heads to increase capital expenditures in the second quarter of 2021 given this type of expenditure will have a direct impact on communities.

“The second quarter is the key to national economic growth. Regional heads should pay attention to the proportion of capital expenditures,” Tito said.

The Minister further said that the capital expenditure should be implemented through labor-intensive programs to ensure many beneficiaries, especially MSMEs, receive the funds. The procurement process also should also take into account the quality and price of goods, he said. (PR of Ministry of Home Affairs/UN) (RI/MUR)