LKPP Records Realization Of General Procurement Plan Of IDR 810.92 Trillion Until October 2023

Coordinating Minister for SMEs Teten Masduki and Head of LKPP Hendrar Priyadi (photo: Aris Nurjani/VOI)

JAKARTA - Minister of Cooperatives and SMEs Teten Masduki opened a national coordination meeting (Rakornas) for the Procurement of Goods and Services 2023. This annual event was held by the Government Goods and Services Procurement Policy Institute (LKPP). This year's National Coordination Meeting for Procurement of Goods and Services has the theme 'Procurement Transformation for Advanced Indonesia'.

In his remarks, Teten said that LKPP had revealed the potential for significant purchases of domestic products in the General Procurement Plan, reaching Rp810.92 trillion.

"A number that illustrates our strong commitment to supporting Domestic Purchase and the development of MSMEs," he explained at the opening of the 2023 Goods and Services Procurement Coordination Meeting, Tuesday, November 7.

Teten said that until November 1, 2023, progress had been recorded with the realization of the procurement of MSME goods (PBJ) of IDR 221.49 trillion and domestic products (GDN) of IDR 474.62 trillion.

According to Teten, this figure is very motivating to continue to strengthen the mechanism for the procurement of goods and services. And believe that this meeting will not only have a significant impact on the procurement sector in Indonesia, but also become a catalyst for wider changes in national development.

On the same occasion, Head of the Government Goods and Services Procurement Policy Institute (LKPP) Hendrar Prihadi said that this coordination meeting was an important foothold in an effort to encourage the process of procuring goods and services so that in the future it could continue the positive trend that must be improved together.

Hendrar said that in 2022 related to E-catalog or electronic catalogs, there were 2.4 million products with a total transaction of IDR 83.9 trillion, while until October 27, 2023, 6.97 million products had reached a total transaction value of IDR 161.30 trillion.

"In 2023, the general procurement plan (RUP) of IDR 1,174.56 trillion as of October 27, 2023 has reached IDR 810.92 trillion. If we calculate that the realized RUP has reached 65.3% of the total planned," he explained.

Hendrar hopes that the remaining 34.7 percent of the RUP that has not been realized will be fulfilled by the end of 2023 and is optimistic that the government's procurement of goods and services in 2023 will record a more positive number.

According to Hendrar, the realization of domestic product expenditure (PDN) in 2022 is recorded at the level of 76 percent, while in the 2023 to 27 October the realization of domestic products reaches 90 percent.

"Party in the procurement of goods and services for micro and small cooperative businesses (MSMEs) in 2022 is recorded at 36.1 percent, while on October 27, 2023 the realization has reached 37.6 percent even though the target in the Presidential Instruction of the Republic of Indonesia (Inpres) Number 2 of 2022 is at least 40 percent," he said.