Strategy of Improvement Domestic Products in Government Goods/Services Procurement in Bogor Regency
DOI:
https://doi.org/10.37385/ijedr.v6i3.7827Keywords:
Public Procurement, Domestic Products, PDN, Strategic Policy, Local Development, Bogor RegencyAbstract
This study explores strategic approaches to enhancing the utilization of domestic products (Produk Dalam Negeri, PDN) in public procurement processes within Bogor Regency, Indonesia. Anchored in the national policy framework promoting local industrial development and economic resilience, the research investigates institutional, regulatory, and procedural barriers that impede optimal implementation of PDN mandates at the regional level. Employing a qualitative descriptive methodology, the study draws on interviews with government procurement officials and local vendors, as well as an analysis of procurement plans, budget realization data, and policy documents. Findings reveal that the underperformance in PDN absorption is primarily attributed to the absence of localized regulatory instruments, inadequate integration of PDN priorities in regional planning and performance systems, limited institutional capacity, and fragmented coordination among key stakeholders. Furthermore, systemic weaknesses in procurement planning and vendor engagement hinder compliance with national targets, resulting in substantial gaps between planned and realized domestic product spending. To address these issues, the study offers a set of comprehensive recommendations. Practically, it advocates for the formulation of local regulations and technical guidelines, capacity building for procurement actors, and the development of digital procurement platforms prioritizing domestic suppliers. From a policy perspective, it recommends the institutionalization of performance-based monitoring and evaluation systems, inter-agency coordination mechanisms, and incentive structures. Theoretically, the research contributes to the discourse on sustainable procurement by proposing a framework linking institutional readiness, procurement processes, and local economic impact. The study concludes that with targeted regulatory reforms, institutional strengthening, and strategic alignment between national mandates and local practices, Bogor Regency can significantly improve its PDN realization, thereby reinforcing local industry participation in public sector supply chains and advancing sustainable regional development.
References
Ananda, C. F. (2017). Pembangunan ekonomi daerah: Dinamika dan strategi pembangunan. UB Press.
Badan Pusat Statistik Provinsi Jawa Barat. (2024). Statistik keuangan pemerintah daerah provinsi dan kabupaten/kota di Provinsi Jawa Barat 2024. https://jabar.bps.go.id/id/publication/2024/11/29/4e7bc602d515a1170c0735bd/statistik-keuangan-pemerintah-daerah-provinsi-dan-kabupaten-kota-di-provinsi-jawa-barat-2024.html
Benchekroun, H. T., Benmamoun, Z., & Hachimi, H. (2022). Implementation and sustainability assessment of a public procurement strategy. Sustainability, 14(23), 15565. https://doi.org/10.3390/su142315565
Budiarjo, B. (2023). Thematic bureaucratic reform for poverty alleviation: Policies and implementation dynamics. Jurnal Analis Kebijakan, 7(2), 169–180. https://doi.org/10.37145/jak.v7i2.688
Ghezzi, R., Kolehmainen, T., Setälä, M., & Mikkonen, T. (2023). Enterprise architecture as an enabler for a government business ecosystem: Experiences from Finland. arXiv preprint arXiv:2309.08266. https://arxiv.org/abs/2309.08266
Harland, C. M., Eßig, M., Lynch, J., & Patrucco, A. (2021). Policy-led public procurement: Does strategic procurement deliver? Journal of Public Procurement, 21(3), 221–228. https://doi.org/10.1108/JOPP-09-2021-089
Hidayat, F., & Hidayat, M. (2023). Risk-based public procurement corruption prevention strategy in Indonesia. International Journal of Economic Development Research, 4(1), 45–60. https://journal.yrpipku.com/index.php/ijedr/article/download/3703/2842/27246
Kamalia, S., & Susanty, A. (2023). Penyusunan rekomendasi strategi untuk meningkatkan penggunaan produk dalam negeri (PDN) pada pengadaan barang/jasa pemerintah. Industrial Engineering Online Journal, 12(2). https://ejournal3.undip.ac.id/index.php/ieoj/article/view/41057
Kurniawati, E. M., Sangka, K. B., Chayati, N., Nurrahmawati, A., Perwitasari, D., & Endiramurti, S. R. (2023). Accountability of government procurement of goods and services through e-procurement: Approach to competition, efficiency, value for money, and integrity. In A. F. Wijaya et al. (Eds.), Proceedings of the Fifth Annual International Conference on Business and Public Administration (AICoBPA 2022) (pp. 250–265). Atlantis Press. https://doi.org/10.2991/978-2-38476-090-9_22
Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah (LKPP). (2023). Profil pengadaan barang/jasa pemerintah tahun anggaran 2022.
Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah (LKPP). (2024). Profil pengadaan barang/jasa pemerintah tahun anggaran 2023.
Marita, L., Andriani, N., Wildan, M. A., Winata, Y. S., Syarif, M., Muhtadin, M., & Alamsyah, M. A. (2021). Contribution of public e-procurement to sustainable development goals in Indonesia: Systematic literature review. International Journal of Science, Engineering and Information Technology, 6(1), 256–265. https://doi.org/10.21107/ijseit.v6i1.12475
Meshack, S., Leticia, M., & Baraka, I. (2023). How public procurement can help societies achieve SDGs: A conceptual model. Management of Sustainable Development, 15(1), 36–46. https://doi.org/10.54989/msd-2023-0006
Peraturan Pemerintah Republik Indonesia. (2018). Peraturan Pemerintah Nomor 29 Tahun 2018 tentang Pemberdayaan Industri.
Saragi, J. E. M., Hamka, & Silitonga, M. S. (2023). Strategy for increasing the use of domestic products in the procurement of goods/services in government procurement agency. International Journal of Economics Development Research, 4(2), 980–996.
Setyadiharja, R. (2017). E-Procurement: Dinamika pengadaan barang/jasa elektronik. Deepublish.
Tsikada, C., Imran, S., & Ullah, A. (2024). Public sector procurement and the support of small and medium-sized enterprises: A comprehensive public procurement regulatory framework. Brazilian Journal of Development, 10(6), e70819. https://doi.org/10.34117/bjdv10n6-069
Wang, N., Cui, N., Hao, J., & Chai, Y. (2025). The role of government procurement in sustainable industry development—The trends and research agenda. Sustainability, 17(3), 1319. https://doi.org/10.3390/su17031319
Wells, J., & Hawkins, J. (2010). Increasing “local content” in infrastructure procurement. Part 2. Proceedings of Institution of Civil Engineers: Management, Procurement and Law, 163(2), 71–75. https://doi.org/10.1680/mpal.2010.163.2.71
Zulmawan, W. (2022). Regulatory impact assessment penggunaan produk dalam negeri pada pengadaan barang/jasa. UNES Law Review, 5(1), 32–49. https://doi.org/10.31933/unesrev.v5i1.287