Government spending on MSEs reaches Rp113.84 trillion up to June 2026

Government procurement spending on goods and services channelled to micro and small enterprises (MSEs) reached Rp113.84 trillion as of 5 June 2026, equivalent to 43.54 per cent of the total realised procurement of Rp261.45 trillion. Secretary of the Ministry of Micro, Small, and Medium Enterprises (UMKM) Loto Srinaita Ginting stated during a discussion in South Tangerang on Friday that, although this figure exceeds the government’s minimum 40 per cent target, the market opportunity for MSEs in public procurement remains substantial. According to data from the National Public Procurement Agency (LKPP), the total goods and services budget for ministries and agencies in 2026 amounts to Rp405.5 trillion, with a General Procurement Plan (RUP) value of Rp380.38 trillion. Loto noted that many MSEs are still unable to fully capitalise on these opportunities due to obstacles such as limited business legality, lack of information, and restricted marketing access. “These limitations mean MSEs are not yet fully trusted by potential buyers and struggle to enter the government procurement market,” she said, as quoted from a press statement. She explained that the government has introduced various measures to boost MSE participation in procurement. In addition to allocating a minimum 40 per cent of procurement spending for MSEs through Presidential Regulation Number 12 of 2021, the government also provides special procurement packages for micro and small enterprises. According to Loto, MSEs that are less than three years old and lack procurement experience are still given the opportunity to participate in government procurement processes. Down payment facilities are also available to support business continuity. To broaden MSE access to various market opportunities, Loto mentioned that the Ministry of UMKM is preparing to integrate LKPP’s e-purchasing service information into the Sapa UMKM application, enabling more businesses to access the government procurement market. Additionally, Sapa UMKM will be integrated with the UMKM Digital Market (PaDi) platform to expand business access to procurement needs of state-owned enterprises and other digital trading platforms.