President: Government Procurement of Goods and Services Should Prioritize Domestic Products

President Jokowi delivers his remarks at the Opening of the National Coordination Meeting (Rakornas) on the GovernmentProcurement of Goods and Services, Wednesday (18/11) virtually from the Bogor Presidential Palace, West Java Province. (Photo by: Presidential Secretariat Press Bureau/Kris)

The Government procurement of goods and services must prioritize micro, small and medium enterprises’ (MSMEs) products to generate added values for society, President Joko “Jokowi” Widodo has said.

The President made the statement at the Opening of the National Coordination Meeting (Rakornas) on the Government Procurement of Goods and Services, virtually from the Bogor Presidential Palace, West Java Province, Wednesday (18/11).

“Do prioritize the government spending on domestic products, particularly MSMEs products. Do increase local content requirement (TKDN) figure as much as possible,” the President said.

President Jokowi went on to say that the TKDN must be increased consistently and continuously, instead of being a complement to requirements in the process of procuring goods and services.

According to him, both the spending on domestic products and an increase in the TKDN are expected to create a large multiplier effect for the regional and national economy. “Millions of workers and their families are depending on the sustainability of our domestic industry and MSMEs sector,” he said.

Therefore, the President instructed the National Public Procurement Agency (LKPP) to actively put MSMEs’ products that meet the requirements in the e-catalog. “MSMEs should be more involved in filling the supply chain for the TKDN production, for instance, the automotive industry and telecommunications in the construction sector,” he added.

On that occasion, the President also expressed belief that the quality and price of MSMEs’ products are comparable to those of imported products. “If we continue to strengthen, to assist, and to facilitate the MSMEs sector, our MSMEs products will be able to compete in regional and global markets,” the President concluded. (DND / UN)

Translated by: Syarifah Aisyah
Reviewed by: Lulu Wuliarti