Minister Of Home Affairs Tito: Minimum 40 Percent Of APBD Goods And Services Expenditure From MSMEs

Minister of Home Affairs Tito Karnavian/Antara

JAKARTA - Minister of Home Affairs Muhammad Tito Karnavian said that a minimum of 40 percent of the allocation for goods and services spending in the APBD must come from MSME products.

"Our domestic products are not inferior in quality to foreign ones, for some items, why do we have to buy (products from) abroad," said the Minister of Home Affairs in a statement in Jakarta, quoted by Antara, Friday, February 25.

The Minister of Home Affairs, Tito Karnavian, together with the Head of LKPP, Abdullah Azwar Anas, have agreed on the minimum amount of budget allocation for goods and services that must come from MSME products.

The agreement is contained in the Joint Circular (SEB) of the Ministry of Home Affairs and LKPP regarding the proud national movement made in Indonesia on the procurement of goods/services within the local government environment which was signed jointly at the Ministry of Home Affairs Headquarters, Friday, February 25, 2022.

Minister of Home Affairs Tito said the agreement was aimed at spurring a bright business climate for micro, small and medium enterprises.

According to the Minister of Home Affairs, this step is important because it is a turning point for various positive achievements for the government. Moreover, the proud movement made in Indonesia is a direct direction of President Joko Widodo to utilize domestic products.

This effort is also to take advantage of Indonesia's advantages as a country with the fourth-largest population in the world. Moreover, Indonesia also has reliable production capabilities, both in terms of large, medium, small, micro, to ultra micro-scale entrepreneurs.

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Moreover, the Indonesian people, especially those in the regions, have a lot of creativity. Such conditions make Indonesia have a large market share potential.

The Minister of Home Affairs said that based on the direction of President Joko Widodo, local governments were asked to create economic resilience by involving MSMEs.

In this case, he said, MSMEs were asked to produce products that matched their creativity and needs. Thus, these products can be purchased by local governments.

"Therefore, LKPP has a very good idea. His step is to create an e-catalog, because, with e-catalog, the auction process is not complicated," said the Minister of Home Affairs.

The Minister of Home Affairs assessed that the use of these services would help the government's efforts to prevent corruption. This is because the process created simplifies the realization of spending.

The Minister of Home Affairs invites MSME actors to boost the production of goods and services needed by the government, so that the production results have a great opportunity to be utilized by the regional government.

Moreover, he said, according to the SEB, local governments are asked to allocate a minimum of 40 percent of the APBD for the purchase of domestic products.