- The Head of National Public Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah – "LKPP") has issued Circular No. 3 of 2023 on E-Purchase Spending Affirmations for Domestic Products and Products of Micro- and Small-Scale Enterprises and Cooperatives (collectively referred to as "Small Business Entities") ("Circular 3/2023"), which has been issued in order to provide greater opportunities for Small Business Entities to increase the utilization of domestic products during public procurements.
- In order to realize the abovementioned spending affirmations, government actors should ensure that the following measures are carried out, among others: 1) Increase the number of display windows in the sectoral and local Electronic Catalog by displaying the requirements for products/services at regional working units/departments; 2) In cases where the required products/services are not available through the electronic catalog, then the relevant government agencies should encourage Small Business Entities to display their products through the electronic catalog; and 3) Increase the utilization of domestic products and products offered by Small Business Entities, by stipulating a minimum e-purchase transaction of 30% of the total spending value of a given procurement.
- It should also be noted that Internal Government Supervisory Officials (Aparat Pengawasan Intern Pemerintah) will soon commence monitoring the realization of the above-listed targets.
- The Circular has been in force since 28 February 2023.
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