Jakarta (ANTARA) - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan expressed optimism that the government’s online procurement application, e-Katalog, would stimulate the growth of micro, small, and medium enterprises (MSMEs) in Prabowo Subianto’s incoming administration.

The minister mentioned having coordinated with the next government to ensure it supports and improves the operations of e-Katalog during the 2024-2029 period.

“I am very positive that if we continue to use this system, our industries and MSMEs will grow, efficiency will be achieved, and the trend of corruption will change,” Luhut remarked in Tangerang, Banten, on Tuesday.

e-Katalog, an application developed by the National Public Procurement Agency (LKPP), has been operational and expanding since 2012 to facilitate the central and regional governments in procuring necessary goods and services.

As of September 2024, the application, now in its version 6.0, displays about 9.4 million items—a significant increase from the 50,000 items it showcased in its early days.

According to LKPP data, the total value of goods and services procured by the government from MSMEs was recorded at Rp275.7 trillion (nearly US$18 billion) in 2023, marking a 52.1 percent increase from Rp181.2 trillion (US$11.8 billion) in 2022.

Luhut noted that this favorable figure reflects the government’s success in implementing procurement policies that positively impact the national economy, workforce absorption, and the use of domestically produced goods.

Recognizing the increased value and Prabowo’s commitment to promoting the use of domestic products, the minister emphasized that e-Katalog would help boost Indonesia’s economy, provided the system continues to receive updates and support.

He also urged the incoming administration to push for the finalization of the Public Goods and Service Procurement Bill, as he believes the bill’s legislation would provide a legal foundation for all business actors, including MSMEs, involved in e-Katalog transactions.

“In the past two years, we have been working on the Public Goods and Service Procurement Bill to establish a legal basis. We must build this country within a structured system,” he concluded.

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Translator: Livia K, Tegar Nurfitra
Editor: Anton Santoso
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