"The value of SOEs' procurement of domestic products is huge, and we still have room to further increase the value," the ministry's Expert Staff for Finance and MSME Development, Loto Srinaita Ginting, remarked in Denpasar City, Bali, on Thursday.
However, Ginting remarked that the value of transactions between SOEs and MSMEs only accounted for five percent of the total value of SOEs' purchase of domestic products, which was clocked at Rp909 trillion (US$55.4 billion) last year.
Hence, Ginting encouraged SOEs to prioritize the products of MSMEs while purchasing domestic products.
Speaking during a business matching event held under the PaDi UMKM (MSMEs' Digital Market) program, the official highlighted that commerce activities involving MSME players contributed 61 percent to the national gross domestic product.
Ginting remarked that under the PaDi UMKM program, the total value of transactions between SOEs and MSMEs hit Rp11 trillion (US$670.3 million) in 2020 and propelled to Rp44 trillion (US$2.7 billion) in 2023.
Outlining the PaDi UMKM program, she deemed it to be a trading platform that is more transparent, effective, and efficient and can help prevent misuse of budgets.
"Shopping practices on this platform are carried out in a more transparent manner," she stated.
The PaDi UMKM program, initiated by the SOEs Ministry, serves as a digital procurement platform that connects MSMEs to potential buyers.
Currently, a total of 1.5 million products are being sold via the platform by 115,362 MSMEs and 747 macro enterprises and SOEs.
Meanwhile, buyers registered on the platform include 98 SOEs; 265 ministries, agencies, and regional governments; as well as 181 private entities.
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Translator: Dewa K, Tegar Nurfitra
Editor: Azis Kurmala
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