North Kalimantan Governor Orders Regional Budget To Be Used For Shopping For Domestic Products

JAKARTA - The Governor of North Kalimantan (Kaltara) Zainal Arifin Paliwang ordered regional officials to realize the Regional Revenue and Expenditure Budget (APBD) using domestic products.

"This policy is very positive in encouraging the production and use of domestic goods," said Zainal Arifin Paliwang in Tanjung Selor, Bulungan, quoted from Antara, Monday, June 20.

This, he said, was carried out to support the Proudly Made in Indonesia National Movement (Gernas BBI) launched by President Joko Widodo to encourage the production and consumption of domestic products.

In addition, he continued, to increase public interest in loving domestically made products, especially the work of Micro, Small, and Medium Enterprises, (MSMEs) and local cooperatives.

This policy is a follow-up to the issuance of the Joint Circular Letter (SEB) of the Ministry of Home Affairs (Kemendagri) together with the Government Goods/Services Procurement Policy Institute (LKPP).

The first SEB was published on May 11, 2021, with Number 027/2929/SJ concerning the Acceleration of the Implementation of the Procurement of Goods/Services in Regional Financial Management. The second SEB with Number 027/1022/SJ and Number 1 of 2022 concerning the Proud National Movement Made in Indonesia on the procurement of goods/services within the Regional Government.

"Therefore, we must also be able to carry out this movement, at least for domestic purchases based on the SEB, the purchase of domestic goods with a percentage of 40 percent," he said.

The governor revealed that based on information from the Ministry of Home Affairs, regional governments (Pemda) are required to allocate at least 40 percent of the budget for the procurement of goods and services in the APBD to purchase domestic products.

"If there is a regional budget proposal, the attachment must be seen to see if it includes a plan to purchase 40 percent of domestic goods. If not, the Ministry of Home Affairs will reject it," said Zainal.

The governor revealed that President Joko Widodo's policy through the Proudly Made in Indonesia Movement had many advantages. In addition to reviving the regional economy, the policy will also accelerate the acceleration of the procurement of goods and services.

According to him, it is very important to keep money circulating in the country because shopping domestically helps to raise MSMEs. In addition, the use of domestic products will help local government officials to avoid potential violations of the law.

Moreover, the purchase of goods and services through e-catalogs can also help local governments find out the prices of goods and services in a measurable and transparent manner, because thousands of types of local MSME products will be included in the catalog.

"E-catalog can anticipate corruption loopholes, accelerate the realization of goods and services spending, and increase people's income through MSMEs," said the Governor of Kaltara.

He reminded that it takes commitment from stakeholders to realize the policy, so that Gernas BBI becomes a real action that is implemented at all levels of government.

District/city governments are also asked to be transparent and prioritize accountability in the governance of the procurement of goods/services.