Every government agency needs to optimize its budget for purchasing domestic products with quality and efficiency. The use of the e-Catalog is even believed to prevent corruption.
“This is a way of building a good system. We want this country to become more transparent going forward through government technology,” the Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, said at the close of Business Matching 2024 in Denpasar, Bali, on Thursday (7/3).
Business Matching 2024, organized by the Ministry of Industry, recorded commitments to buy domestic products in government procurement worth IDR 1,428.25 trillion, comprising commitments by ministries, agencies and regional governments of IDR 585.69 trillion and by SOEs of IDR 842.56 trillion.
“This is higher than the previous period, when commitments reached only IDR 1,157.47 trillion,” Minister of Industry Agus Gumiwang Kartasasmita said. Business Matching 2024, held from 4 March, drew tremendous enthusiasm with 4,437 participants, including representatives of ministries, agencies, regional governments (K/L/PD), business entities, associations and industrial companies.
In addition, realized absorption of domestic products reached IDR 213.68 trillion, from K/L/PD realization of IDR 146.94 trillion and SOEs of IDR 66.74 trillion. This is higher than the previous period's realization of IDR 181 trillion. “We are optimistic that this will keep growing and hope it can reach IDR 250 trillion by the end of Q1-2024,” Agus said.
At Business Matching 2024, contracts were also signed for the use of domestic products in the defense sector worth IDR 2.24 trillion out of a total of IDR 9.3 trillion, by the Ministry of Defense with PT Len and PT Pindad, for procuring ammunition, weapons, combat and tactical vehicles, and defense and security equipment systems (Alpalhankam).
In addition, contracts were signed for the use of domestic products in construction worth IDR 2.09 trillion out of a total of IDR 16.4 trillion, by the Ministry of Public Works and Housing with partners including PT Adhi Karya (Persero) Tbk, PT Brantas Abipraya, KSO PT Wijaya Karya (Persero) Tbk–CAMC Engineering Co., Ltd, and PT Waskita Karya (Persero) Tbk, for projects including the VVIP airport, the presidential secretariat building and feeder roads in the IKN area.
“This proves that domestic products already have the capability and quality to meet the needs of the Ministry of Defense and the Ministry of Public Works and Housing,” Agus stressed.
As of 7 March, 2,558 work units in K/L/PD had input detailed data on their domestic product needs, with total commitments of IDR 134.03 trillion that domestic producers need to meet promptly.
“During the three days of business matching, the commitment value rose by IDR 53 trillion, after the detailing process began in early January 2024,” he said. According to the data, civil construction of roads and office buildings is the procurement most needed by K/L/PD, followed by weapons and ammunition, fuel, special-purpose machinery and domestic pharmaceutical materials.
Acceleration measures
However, according to the Minister, there is still potential of IDR 1,294.21 trillion in K/L/PD and SOE procurement for which detailed data on domestic product needs must be pursued. “We hope K/L/PD/SOEs will promptly submit their domestic goods needs so associations and industrial companies can prepare to meet them,” he added.
Besides detailing domestic product needs, the Ministry of Industry is also taking acceleration steps to support purchases of domestic products in government procurement.
“Kemenperin has digitalized TKDN certification, ensuring a fast, accurate and accountable process that can be completed in just 22 working days (previously it took quite a long time),” Agus explained.
In 2024, Kemenperin has also prepared IDR 116 billion for TKDN certification facilitation through National Priority (PN) funds. In addition, IDR 28.446 billion has been prepared through the Special Allocation Fund (DAK) for assistance in obtaining TKDN certificates for 99 regions across Indonesia.
Kemenperin is also drafting regulations on the provisions and procedures for issuing and facilitating TKDN certification. These regulations respond to the need for accountability in the TKDN certification process.
The Minister hopes Kemenperin will continue all innovative steps to accelerate the P3DN program. “We also hope that everyone, whether present or not at the business matching, will keep taking innovative steps to support the uptake of domestic products,” he said.
At Business Matching 2024, Domestic Product Use Awards were also presented to users and producers of domestic products. “Congratulations to the nominees, and I look forward to more innovations related to the P3DN program,” he said.
The recipients of the Domestic Product Use Awards at Business Matching 2024 in the category of State Institutions and Ministries/Agencies with the Largest Budgets were, in the top three, the Ministry of Finance, the Ministry of Defense and the Indonesian National Police.
Next, the category of State Institutions and Ministries/Agencies with Medium Budgets (Ministry of Industry, Statistics Indonesia and the Ministry of Home Affairs), and the category of State Institutions and Ministries/Agencies with Small Budgets (Coordinating Ministry for Maritime Affairs and Investment, the National Public Procurement Agency and the National Institute of Public Administration).
For the Provincial Government category, the top three were West Java, DKI Jakarta and Lampung. In the Regency/City Government category, the winners were Ogan Komering Ilir Regency, Takalar Regency and Lembata Regency.
The State-Owned Enterprise category was won by PT Pertamina (Persero), PT Semen Indonesia (Persero) Tbk and PT Bank Rakyat Indonesia (Persero) Tbk. Next, the Small Industry Producer category (PT Inter Kreasi Adhitama, PT Presisi Mandiri Industri and CV Banyumas Aji Wisesa).
In addition, the Medium Industry Producer category (PT Anugrah Yaden Utama, PT Furni Karya Mandiri and PT Multidaya Putra Sejahtera) and the Large Industry Producer category (PT Kalmed Manufaktur Indonesia, PT Jaya Beton Indonesia and PT Motive Mulia).
Source: Press Release of the Ministry of Industry of the Republic of Indonesia