Procurement Of Goods/Services At IKN Prioritize Domestic Products

Head of LKPP Abdullah Azwar Anas (right) in a meeting with Head of the IKN Authority Bambang Susantono (left) at the LKPP Jakarta Office, Wednesday (18/5/2022). (ANTARA/HO LKPP)

JAKARTA - The procurement of goods/services as well as the provision of infrastructure in the National Capital City (IKN) of the Archipelago will prioritize domestic products and Micro, Small and Cooperative Enterprises (UMK-Cooperatives).

Head of the Government Goods/Services Procurement Policy Institute (LKPP) Abdullah Azwar Anas said his party had finalized the draft of the Presidential Regulation on the State Capital Authority (IKN) in the form of guidelines for providing infrastructure and other goods and services procurement (PBJ) with specificity.

"We are preparing institutional regulations regarding procurement in the Indonesian capital, and we have made the regulations," said Anas in a written statement quoted by Antara, Wednesday, May 18.

Currently, he said, the draft regulation is already on the President's desk. Later these rules will be in the form of LKPP Institution Regulations and signed by the Head of LKPP.

The draft rules in the form of guidelines for the provision of infrastructure and the procurement of other goods/services with a specificity in IKN which prioritizes Domestic Products (PDN) and UMK-Cooperatives is a directive of President Jokowi.

"The main principle is to prioritize the use of PDN and UMK, including the empowerment of small-scale local business actors, the use of local labor and local materials. He also added, as a world city for all, PBJ at IKN will also pay attention to sustainable environmental aspects.

In addition, he continued, LKPP has opened a repeat order scheme for the procurement of goods/services, especially construction work which is the same as the previous work. This method is an instrument to provide rewards (gifts) for providers who perform well.

In Presidential Regulation Number 12 of 2021 concerning Amendments to Presidential Regulation Number 16 of 2018 concerning Procurement of Government Goods/Services (Perpres 12/2021), this method only applies to the Procurement of Consultant Services.

Anas continued that the reform of the government's procurement of goods/services business process is currently the key to carrying out the President's directives in order to increase the use of PDN, increasing the UMK-Cooperatives.

In line with that, LKPP also integrates systems by focusing on accelerating electronic catalogs.

"We continue to push for the road, as a result, there has been a spike after the President's directive in Bali. We just have to monitor it so that the President's target is met. For this reason, we always monitor SIRUP and monitor its realization. If it doesn't meet the target, there will be sanctions," he said.

LKPP Deputy for Strategy and Policy Development Sarah Sadiqa added that the regulation would consist of three large clusters of regulation of PBJ needs in IKN.

First, procurement HR that is in line with the needs of the IKN Authority adopts the Agile Organization scheme. Second, the procurement process that accommodates convenience and innovation in the process of procuring government goods/services, and thirdly, local empowerment that empowers local business actors in the environment around the Indonesian capital and the use of local labor and materials.

"Later on, this regulation will also be equipped with a Standard Bidding Document," said Sarah.

LKPP data as of May 17, 2022 notes that currently the number of products that have been published in the electronic catalog has amounted to 327,931 products. A total of 222,637 products appear in the National Catalog, then 77,934 products in the Sectoral Catalog, and the remaining 27,360 products in the Local Catalog.