Minister: Digital Transformation on Procurement Process to Improve Quality of Government Spending

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 25 Agustus 2022
Category: News
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Minister of National Development Planning (PPN)/Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa delivers a press statement at the Presidential Office, Jakarta, Thursday (08/25). (Photo by: PR/Agung)

Minister of National Development Planning (PPN)/Head of the National Development Planning Agency (Bappenas) Suharso Monoarfa underscored the importance of accelerating digital transformation of procurement of goods and services in order to improve the quality of government spending.

“This is vital because we want to improve the quality of our spending so that there’s no duplication of spending on our State Budget as well as regional budgets year to year,” Suharso said in a press statement at the Presidential Office, Jakarta, (08/25).

In the transformation, the Government will prioritize domestic products when procuring goods and services.

“On domestic products, we want truly domestic ones not imported products with local packaging,” Suharso stated.

The Minister also stated that the number of products in the e-Katalog application managed by the National Public Procurement Agency (LKPP) has increased rapidly from around 50,000 to 600,000.

“This year, we aim for one million while next year, it is two million of products. So, the LKPP (app) serves as a marketplace for all the products. We push for original products, once again, truly domestic products with high Domestic Component Level (TKDN),” he added.

According to him, the Government has also formulated policies to stimulate domestic industries especially MSMEs and cooperatives and established good connection between both of them and big businesses as well as stimulated the domestic industry.

“According to the President’s directives, in the context of the procurement, do not let MSME entrepreneurs and cooperatives be left behind. Then, the winner, just because of the price, will be the big companies,” he said, adding that the Government will find a way to make it well-distributed. (TGH/UN) (FI/MMB)  

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