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

Jakarta (ANTARA) - Government procurement spending for goods and services distributed to micro and small enterprises (MSEs) as of 5 June 2026 has reached Rp113.84 trillion, equivalent to 43.54 per cent of the total procurement realisation which reached Rp261.45 trillion.

The Secretary of the Ministry of Micro, Small, and Medium Enterprises (MSMEs), Loto Srinaita Ginting, stated during a discussion in South Tangerang on Friday that although this achievement exceeds the government’s minimum target of 40 per cent, the market opportunity within government procurement remains vast for MSE players to utilise.

Based on data from the National Public Procurement Agency (LKPP), the total budget for goods and services procurement by ministries and agencies in 2026 reached Rp405.5 trillion, with a General Procurement Plan (RUP) value of Rp380.38 trillion.

Nevertheless, Loto assessed that many MSE players have yet to optimally capitalise on these opportunities due to several obstacles, ranging from limited business legality and minimal information to restricted marketing access.

“These limitations mean that MSEs are not yet fully trusted by potential buyers and find it difficult to enter the government goods and services procurement market,” he said, as quoted from a press release.

He explained that the government has provided various facilities to increase MSE participation in procurement. In addition to allocating at least 40 per cent of procurement spending to MSEs through Presidential Regulation Number 12 of 2021, the government also provides specific 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 the government procurement process. Furthermore, advance payment facilities are available to support business continuity.

To expand MSE access to various market opportunities, Loto mentioned that the Ministry of MSMEs is also preparing to integrate LKPP’s e-purchasing service information into the ‘Sapa UMKM’ application, so that more business players can access the government goods and services procurement market.

Additionally, he noted that ‘Sapa UMKM’ will be integrated with the Digital Market (PaDi) UMKM platform to broaden business access to the procurement needs of State-Owned Enterprises (BUMN) as well as various other digital trade platforms.