LKPP: Realization Of Domestic Product Expenditures Reaches 64.37 Percent To The Third Quarter Of 2024

Rupiah (Photo: Antara)

JAKARTA - The Government Goods/Services Procurement Policy Institute (LKPP) noted that the realization of domestic goods/products expenditure (PDN) in the third quarter of 2024 reached IDR 535.71 trillion or 65.37 percent of the budget.

"The plan is to spend IDR 819.49 trillion, while the realization of the use of domestic products from providers is now IDR 535.71 trillion," said the Daily Executive (Plh.) Head of the Government Goods/Services Procurement Policy Institute (LKPP) Iwan Herniwan quoting Antara.

Meanwhile, the total allocation of spending on the procurement of national goods/services, both domestic and imported products, this year reached Rp1,213.2 trillion, an increase of 50.41 percent compared to the 2020 allocation which was recorded at Rp806.6 trillion.

The total expenditure allocation this year, according to him, has been realized in the amount of IDR 595.45 trillion by the end of September.

Based on data from the Central Statistics Agency (BPS) and the Ministry of National Development Planning/National Development Planning Agency of the Republic of Indonesia (PPN/Bappenas), PDN spending conducted by LKPP has a positive impact on the domestic economy.

In the first quarter of 2024, PDN spending was recorded at IDR 101.3 trillion and contributed 0.43 percent to economic growth, or equivalent to creating 1.14 million new jobs.

Iwan said that one of these was because his party continued to encourage the use of PDN from small and medium enterprises and cooperatives (SMEs-K).

He stated that the participation of SMEs in the goods/service procurement contract increased from 36.1 percent in 2022 to 42.8 percent in 2023, then reached 40.27 percent in the third quarter of 2024.

The total realization of goods/service procurement expenditures from SMEs-K in that period, he said, was recorded at IDR 239.8 trillion.

Iwan stated that there was also a significant increase in the number of products registered on the LKPP e-procurement platform with the number of registered products increasing from 2.4 million in 2022 to more than 10 million products in the third quarter of this year.

"We have a big role in development, in this case the absorption of PDN through the procurement of goods/services," he said.