An e-catalog has been set up by the Indonesian government to list goods and services online that provides buyers the list of prices, suppliers and contractors. The catalog is set to reduce corruption, as prices of goods are often marked up by distributors to poor buyers (often farmers or SMEs) who don’t have visibility on market rates. The real price of goods will be displayed online, increasing transparency. The catalog is also expected to promote local businesses through online listings.
The e-catalog in Indonesia is now set up for Gorontalo province, Semarang in Central Java, Yogyakarta and Badung district in Bali in further efforts to save the government more money. The Services Procurement Policy Institution (LKPP) expects the digital initiative started last year to grow further as it encourages the government to do online shopping thus cutting out unused transportation, human resources and accommodation costs as everything is digital.
Prices of goods are often marked up by distributors to poor buyers (farmers or SMEs) who don’t have visibility on market rates.
Prior to the new scheme implementation, procurement took a longer time as the regional government needed to propose the procurement details to the central government before following it up to LKPP.
E-catalog to also promote local businesses
The Indonesian government hopes that the launch of the e-Catalog will also open up opportunities for local businesses, as they would be directly listed on the website. Businesses will have the chance to contribute to the development of their own region. As the website will encourage regional connectivity, local production will have a chance to be exposed to a wider market.
The e-catalog is expected to open up opportunities for local business to contribute for the development in the area. In addition, it would enable the local production to boost the wider market and also become a pilot project for other regional governments, showing the sign of a breakthrough to support national program.
A version of this appeared in Jakarta Globe on June 18. Read the full article here.