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The Indonesian government is intensifying efforts to digitalise procurement processes for goods and services to enhance transparency, promote efficiency, and stimulate the growth of domestic industries. This strategic move aims not only to improve fiscal management but also to strengthen the resilience of local businesses across various sectors. Coordinating Minister for Maritime Affairs and Investment, Luhut B. Pandjaitan, outlined the importance of digitalisation in curbing corrupt practices and optimising the state budget.
Minister Luhut stressed that digital procurement is crucial in creating an ecosystem where corruption struggles to thrive. By adopting transparent systems, the government aims to close loopholes for manipulation and protect state finances, with potential savings reaching hundreds of trillions of rupiah. He highlighted this digital shift as a major step towards ensuring efficient use of public funds and fair procurement processes.
One of the key examples of this shift is the e-catalogue system, which has proven to be a game changer in government procurement. The e-catalogue serves as a centralised platform where government agencies can purchase goods and services more transparently and cost-effectively.
Minister Luhut pointed out that, for items such as computers and laptops, the e-catalogue system has led to budget savings of up to 40%. He emphasised that the substantial savings generated by this digital approach offer long-term benefits for the country, ensuring that resources are allocated more prudently.
Beyond budget savings, the government is leveraging digitalisation to prioritise domestic products. Deputy Minister of Agriculture Sudaryono highlighted the administration’s commitment to promoting locally made goods, especially in agriculture. By digitising procurement for machinery like tractors and pumps, the government has reduced costs by 30-40%, benefiting both the budget and domestic industries by increasing demand for local products.
Deputy Minister Sudaryono further emphasised that the government’s focus is not solely on cost reduction but also on reinforcing the resilience of domestic industries, particularly in the agricultural sector. The use of digital platforms such as the e-catalogue allows for a more streamlined procurement process, ensuring that the government’s needs are met efficiently while supporting local manufacturers. The government’s emphasis on buying domestically produced goods aligns with its broader economic strategy of strengthening local industries and reducing dependence on imports.
The P3DN Business Meeting, organised in collaboration between the Ministry of Communication and Informatics and the Ministry of Agriculture, serves as a vital platform for stakeholders to discuss the importance of digital transformation in procurement. With the theme “Building a Digital Economic Ecosystem for Local Products,” the event aims to create a digital environment that supports local industries and encourages the adoption of more transparent, accountable, and efficient procurement practices.
The platform brings together representatives from ministries, regional governments, and business actors, all focused on exploring new opportunities for supporting domestic products through digital initiatives.
As part of its broader efforts to digitalise procurement, the government is also keen on ensuring that these changes help build a more robust local economy. The promotion of local products through digital platforms is not only about reducing costs but also about creating a sustainable ecosystem that supports long-term industrial growth.
Sudaryono reiterated that the P3DN Business Meeting is a strategic opportunity to unite various stakeholders and foster collaboration aimed at promoting the use of domestic goods, boosting innovation, and ensuring that Indonesian industries can thrive in a competitive global market.
Through these initiatives, the Indonesian government is setting the stage for a future where digitalisation, transparency, and local industry growth go hand in hand. By embracing these technologies and processes, the country aims to create a more efficient, resilient, and innovative economy that can withstand global challenges while promoting the use of its domestic products.
