This will make it easier to purchase goods and services without an auction
Jakarta (ANTARA) - The regional budgets (APBD) must include a plan to orient 40-percent spending toward domestic product purchases, Minister of Home Affairs Muhammad Tito Karnavian has said.

"We urge regions to input plans to purchase 40 percent of domestic goods in their APBD. Otherwise, we will not approve their APBD," he added at the 2022 Regional Finance National Coordinating Meeting in Jakarta on Thursday.

He asked the governor to take similar steps while reviewing the APBD proposed by district/city governments. The effort is meant to support the Proud of Indonesian Products National Movement (Gernas BBI) proclaimed by President Joko Widodo (Jokowi).

According to the minister, the policy to increase the purchase of domestic products through Gernas BBI has several advantages.

In addition to encouraging regional micro, small, and medium enterprises (MSMEs), it would accelerate the procurement of goods and services, Karnavian said.

"Those 40 percent includes budget for goods, services, and capital expenditures. It is important to spend money on domestic products to expedite domestic money circulation. This movement will support our domestic MSMEs," he added.

He explained that this effort would help local government officials to avoid a potential law violation. In addition, purchasing goods and services via the e-catalog can help local governments get the prices of goods and services in a measurable and transparent manner.

"This will make it easier to purchase goods and services without an auction. MSMEs can showcase their goods and services through the e-catalog. Later, the Government Goods/Services Procurement Policy Institute (LKPP) will review it. So, we do not need to conduct auctions, but direct purchases from MSMEs," the minister added.

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Translator: Boyke Ledy W, Resinta S
Editor: Sri Haryati
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