Jakarta, The Indonesia Post – Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Panjaitan targets government procurement spending, which averages IDR 400 trillion per year, to be used to purchase products for Micro, Small and Medium Enterprises (MSMEs).
“There is a government program that will be launched so that government spending is obligatory to buy through the MSME e-catalog. The expenditure is worth around Rp. 400 trillion,” Luhut said at the online opening of the Proudly Made in Indonesia National Movement in South Sulawesi, Thursday.
On average, the government has a procurement budget of up to IDR 1,170 trillion per year, which can increase every year.
If Rp400 trillion of the total expenditure is used to buy MSME products, national economic growth can increase by 1.71 percent year on year per year.
“So we calculate, if there is only IDR 400 trillion spent on MSMEs, it will have an impact of 1.71 percent on economic growth,” he said.
He said he had collaborated with the Government Goods/Services Procurement Policy Institute (LKPP) to encourage the purchase of government goods through the MSME e-catalog which curates good quality products.
“This will create tens of thousands of MSMEs and hundreds of thousands of jobs because Rp. 400 trillion is not a small number but the equivalent of 35 billion US dollars,” he said.
The program to encourage the use of MSME products in government procurement will soon be launched, and after implementation it will continue to be evaluated.
According to Luhut, this program can optimize the performance of MSMEs which are actually able to increase economic growth of up to 3.7 percent year on year every year. (ojn/bbs)
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