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Indonesia to Drive Local Products to Join E-Katalog App

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In accordance with the President’s mission, Hendrar Prihadi, the newly appointed Head of the National Public Procurement Agency (LKPP), stated that the agency will continue to push local products, particularly MSME commodities, to join the e-Katalog programme.

The Government of Indonesia (GoI) Goods and Services Procurement Policy Agency (LKPP) oversees the Indonesian-language e-Katalog, an online platform for purchasing goods and services that enables public hospitals and government institutions to acquire necessary products or services for a variety of market sectors, including medical devices. To promote openness and thwart corruption in public procurement, the e-Katalog was created.

“Even today, efforts are being made by the central, provincial, and regional governments to mobilise MSME facilities. Later, we will also collaborate, the LKPP and the cooperative office, of course, under the Coordinating Ministry for Maritime Affairs and Investments,” says Hendrar who was also given a task by President Joko “Jokowi” Widodo to aid initiatives to promote the use of domestic products (P3DN) to boost economic growth.

A bill on the procurement of goods and services that needs to be approved before 2024 was also ordered by the President to be drafted by the agency. Additionally, the Indonesian government made substantial structural and procedural changes to the e-Katalog, which changed the way the medical device mechanism worked. Prior to now, LKPP oversaw the national e-Katalog for all goods purchased by government organisations.

Due to recent procedural changes, the Ministry of Health (MoH) is now in charge of reviewing medical devices, health-supportive tools, and domestic health product purchases rather than the LKPP (MOH). Similar effects could be felt in other business sectors.

The Ministry of Industry (MoI) will closely collaborate with the LKPP and the Corruption Eradication Commission to manage the sectoral e-Katalog and implement it in a professional, quantifiable, prompt, focused, and directed manner to combat corruption.

Some of these sectoral e-structural Katalog’s alterations include prices for products in sectoral e-Katalogs can be determined by manufacturers or their local representatives. Pricing was formerly determined by talks with LKPP or the MOH under the National e-Katalog, which limited the price to a controlled markup from landed cost. In addition, eliminating the price negotiating meeting allows the manufacturer to set the price at any time, which is essential for adding additional products to the system more quickly.

Likely, there will be more medical device categories eligible to apply to the sectoral e-Katalog. By June 2022, the MOH set a goal of 20,000 goods in the sectoral e-Katalog. 1,482 different types of medical devices now fall under the product categories authorised for enrollment in 2022. The period for enrolment has been prolonged. The enrollment period begins on February 11 and runs through 30 November 2022.

A streamlined application process is included with Sectoral e-Katalog. It is no longer necessary for any documents to have their authenticity certified by the Indonesian Embassy in the nation of origin. The amount of time needed to prepare an application will be greatly decreased.

As the application will be examined by the MOH and not the LKPP, there are fewer differences in product category between the Import License and e-Katalog application. Moreover, Suharso Monoarfa, Minister of National Development Planning (PPN)/Head of the National Development Planning Agency (Bappenas), emphasised the significance of expediting the digital transformation of purchasing products and services to enhance the calibre of public spending.

He cited that when making purchases of goods and services throughout the transformation, the government will give preference to domestic products. The Minister added that the number of items in the LKPP-managed e-Katalog application has risen sharply from about 50,000 to 600,000.

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