President Launches E-Catalog 6.0 to Boost Govt. Procurement Efficiency

KBRN, Jakarta: President Prabowo Subianto launched the electronic catalog (e-catalog) version 6.0 as a strategic step to promote transparency and efficiency in government procurement of goods and services.

The President hopes the e-catalog version 6.0 will significantly change Indonesia's procurement system. Prabowo urged all ministries/agencies and regional administrations to utilize the catalog starting in early 2025.

"All ministries, agencies, and regional administrations must utilize the e-catalog version 6 starting January 1, 2025. This version is expected to reduce procurement costs by 20-30 percent and administrative costs by up to 40-50 percent," the President said during the handover of the Digital 2025 Budget Implementation List (DIPA) and Transfer to Regions (TKD) Allocation List for the 2025 fiscal year at the State Palace in Jakarta, Tuesday.

The President also highlighted the importance of efficiency in managing the national economy by referring to the incremental capital-output ratio (ICOR), considering that Indonesia's inefficiency level is still higher than several neighboring countries.

"This inefficiency is estimated to be 30 percent. Hopefully, using the e-catalog will reduce this inefficiency," said the President.

Therefore, the President appreciated the efforts of all parties involved in promoting performance efficiency by introducing e-catalog version 6.0. He also invited all stakeholders to create a clean government with good management and leadership.

National Economic Council (DEN) Chairman Luhut Binsar Pandjaitan said that since its implementation, up to December 2024, the digitalization of government spending through e-catalog has accumulated government transactions of up to IDR 50 trillion and reduced operational costs by up to 40 percent in projects.

"This is a real benefit of the e-catalog system," said Luhut. According to him, digitalization benefits cost efficiency and increases transparency and accountability in managing the state budget. ***