LKPP Encourages Appropriation For Shopping For Domestic Products

Head of the Government Goods/Services Procurement Policy Institute (LKPP) Abdullah Azwar Anas. (Photo: ANTARA)

JAKARTA - The Government Goods/Services Procurement Policy Institute (LKPP) is collaborating with the Association of Indonesian Regency Governments (Apkasi) to spur domestic product spending (PDN) and MSEs-cooperatives, including through the local electronic catalog system.

"The Regional Budget plays a very important role as a fiscal instrument to restore the local economy. God willing, I believe the regents have a strong commitment to bringing MSEs in their regions to onboard in local e-catalogs and LKPP online stores so they can participate in accessing APBD expenditures," said the Head of LKPP Abdullah Azwar Anas quoted from Antara, Saturday, June 18.

President Jokowi has instructed that the government's budget of Rp. 1,200 trillion should be focused on PDN and UMK-cooperative spending.

Following up on this, LKPP has frozen more than 5,000 imported products that have substitutes for domestic products.

"We have an obligation that 40 percent of the APBN/APBD is used for PDN and UMK-cooperatives. If all district/city developments in Indonesia use domestic products, our domestic industry will grow. Through electronic catalogs and online stores, there will be no more delays in the future absorption of the APBN/APBD," explained Anas.

LKPP itself continues to improve so that business actors can easily enter the electronic catalog through trimming the stages/cutting bureaucracy in the e-catalog, from eight stages to only two stages.

Anas hopes for the support of regional heads to immediately take advantage of local catalogs, where now all regional governments have been appointed as local catalog managers.

"The progress of the regional governments in organizing local electronic catalogs has not yet met the President's expectations. So far, only 127 local governments (23.4 percent) have broadcast their products, but 415 local governments (76.6 percent) have yet to broadcast their products. Our current task is to help perpetrators. efforts to immediately onboarding to electronic catalogs and online stores," said Anas.

Meanwhile, General Chairperson of the Association of Indonesian Regency Governments (Apkasi) Sutan Riska Tuanku Kingdom said that his party was ready to carry out President Jokowi's directives by collaborating with LKPP, Ministry of Home Affairs (Kemendagri) and related Ministries/Institutions (K/L).

"The local government must be able to make concrete policies so that the impact can be felt, commitments will continue to be made to accelerate the national economic recovery and face global economic turmoil," said Sutan.