SOEs Must Absorb MSME Products, Erick Thohir: Clear Presidential Instructions, Uncommitted Directors Will Be Removed

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir warned the directors of state-owned companies to be serious about absorbing domestic products. If not, Erick admitted that he would not hesitate to remove the top leadership of the BUMN.

This is in line with Presidential Instruction (Inpres) No. 2 of 2022. In which it specifically regulates the issue of accelerating the increase in the use of domestic products and Micro Products, Small Businesses (MSMEs).

This regulation emphasizes that ministries and institutions (K/L), the National Police, to the TNI, including local governments and state-owned enterprises (BUMN) plan, allocate, and realize at least 40 percent of the budget value for goods and services to use the products of Micro, Small and Cooperatives. SMEs) from domestic production.

"I ask according to the Presidential Instruction that the directors of SOEs must carry out this properly. Sorry, the instructions are not clear, those who are not committed can be removed," he said during the Showcase and Business Matching Second Stage of Government Goods/Services Shopping for Domestic Products. , at JCC, Jakarta, Monday, April 25.

Not only that, Erick also reminded that the agreed contract could be paid immediately. The reason is, Erick admitted that he often received complaints of late payments.

"It is very important that we have a common commitment, not only contract but also pay. Sometimes paying is a problem. I often get complaints that the contract is there, the goods have been sent, it takes a long time to pay," he said.

Erick also admitted that he had assigned all directors of state-owned companies to prioritize the absorption of domestic products, especially MSME products. This step is also an effort to suppress inflation.

"Because this has been implemented and the President's policy has been implemented. This is something that is really needed today when the world economy is in turmoil, we have to make sure our economic growth goes well, we have to suppress inflation," he said.

Moreover, said Erick, this step is in line with the SOE Ministry's transformation program. He emphasized that his party will continue to open access for ultra-micro and MSME business actors. One of them is limiting the company's management access to work on projects with an investment value of between IDR 250 million and IDR 14 billion.

"I respectfully request that all SOE directors have been assigned directly, especially since we have already had a transformation on August 17, 2020, we will launch PADI MSMEs, followed up by the Minister's decision that tenders under 400 million must be MSMEs," he said.

Regarding the PaDi MSME Digital Market, Erick noted that there are already 15,000 micro players who have become SOE partners. The total transaction value reached Rp. 20 trillion.