VP Ma’ruf Amin: 40% of Gov’t Goods, Services to be Procured from Local MSMEs

Vice President Ma’ruf Amin. (Photo by: Vice President’s Secretariat)

The Government continues to promote the use of domestic products through allocation of Micro, Small, and Medium-sized Enterprises (MSMEs) products of at least 40 percent for the Government’s total procurement of goods and services.

Vice President Ma’ruf Amin on Friday (18/8) said that commitment of the Government to prioritize products made by local MSMEs was based on Presidential Regulation Number 12 of 2021. Under the Regulation, MSMEs will have more opportunities in procurement of the Government’s goods and services.

“Monitoring and implementation of the regulation should be disseminated to the public in a transparent manner,” the Vice President said in his introductory remarks during the peak event of the national campaign to buy Indonesian products (Gernas BBI).

In addition to the promotion of Gernas BBI campaign, the Government is also promoting the Government’s Domestic Component Level (TKDN) scheme with aims to boost economic growth and ensure national economic self-sufficiency.

According to the Vice President, the Government through Gernas BBI campaign also encouraged the MSMEs to go digital. In 2020, the campaign has successfully assisted 3.7 million MSMEs to join digital marketing platform.

“Online marketing is expected to create multiplier effects and to bring greater benefits for the MSMEs that will eventually contribute to the people’s welfare and national economy,” he said adding that the campaign also aims at preparing digital economic transformation.

Therefore, he added, the development of telecommunication and information infrastructures are crucial. Ministry of Communications and Informatics will continue to build the infrastructures all across the archipelago. Internet network will open more access to digital ecosystem for the people, particularly small and medium business players.

“It is expected that all regions in Indonesia are connected with internet access by 2023. Wide digital access is expected to bring value added to the local products and crafts since it can be marketed in national and global markets. Thus, economic transformation through digitalization is one of the Government’s priorities,” he stated.

On that occasion, he encouraged the MSMEs to use digital platforms, including social media to support their businesses, to improve financial access, distribution, and marketing. He also told them to be more adaptable, creative, and innovative in making products to suit the taste and demand of the market.

Ma’ruf Amin expressed hope that the Gernas BBI campaign can boost national branding that could create new and better industry, creation, innovation, and market to enhance local and national economic growth. It is also expected that the campaign can support the recovery of national economy and tourism sectors, particularly in Labuan Bajo, East Nusa Tenggara where the peak event takes place. (UN) (RAS/LW)