MEDAN | INDATANEWS.COM - Acting Secretary of the North Sumatra Provincial Government Timur Tumanggor has urged regional governments to expand the use of domestic products while strengthening support for micro, small enterprises and cooperatives (UMK-K). These measures are considered an important part of driving regional economic growth, strengthening local businesses, and improving the quality of public services.
Timur Tumanggor made the statement while attending a monitoring session on government procurement of goods and services, as well as an event aimed at optimizing the use of
domestic products and increasing the participation of
UMK-K through consolidated procurement. The event was held on Wednesday, September 30, 2026, at the Raja Inal Siregar Hall at the
North Sumatra Governor's Office on Jalan Pangeran Diponegoro Number 30, Medan.
"We want an increasing share of government spending to directly benefit businesses in the regions, create economic opportunities, and strengthen products made by the people of North Sumatra," he said.
According to Timur, regional governments must ensure that public spending is not solely focused on meeting procurement needs, but also generates broader economic benefits for the community. The use of
domestic products and the involvement of
UMK-K in government procurement could provide local businesses with greater opportunities to grow.
Strengthening Consolidation at the Planning Stage
Timur urged regional governments to strengthen procurement consolidation from the planning stage. The process needs to receive greater attention so that the government can better identify its procurement needs while maximizing opportunities for regional businesses to participate.
In addition to consolidation, Timur advocated the development of a Clearing House forum as a mechanism for reducing risks in the procurement of goods and services. The forum is expected to help regional governments identify and prevent potential problems at an early stage, allowing procurement processes to be carried out in a more orderly manner and in compliance with applicable regulations.
Based on monitoring data from the Government Goods and Services Procurement Policy Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah/LKPP),
North Sumatra recorded a 95.62 percent rate of domestic product utilization in 2025.
UMK-K participation stood at 36.41 percent, while the share of E-Purchasing reached 55.39 percent.
Timur considered the progress in domestic product utilization and E-Purchasing positive. At the same time, the regional government needs to further increase UMK-K participation, as the current rate remains below the established target of 40 percent.
Increasing
UMK-K participation is a task that needs to receive greater attention through joint efforts. Regional governments can expand local businesses' access to
public procurement processes so that the economic benefits of government spending are distributed more evenly among the population.
STRENGTHENING PROCUREMENT MECHANISMS: Acting Secretary of the North Sumatra Provincial Government Timur Tumanggor urges district and city governments to strengthen procurement mechanisms by involving UKPBJ, APIP, and relevant regional agencies. (PHOTO: Alexander AP Siahaan)
Promoting Transparent Procurement
Timur also said regional governments must strengthen governance in the procurement of goods and services to ensure that procedures are transparent and accountable and to prevent corrupt practices. One strategy that can be applied is Monitoring, Controlling, Surveillance for Prevention (MCSP).
The strategy calls for regional governments to consolidate the procurement of goods and services through the Electronic Procurement System (Sistem Pengadaan Secara Elektronik/SPSE) and electronic catalogs. The use of these systems is intended to strengthen oversight while increasing the effectiveness of procurement processes.
Timur called on all district and city governments in North Sumatra to strengthen this mechanism. He also emphasized the importance of involving Procurement Units (Unit Kerja Pengadaan Barang/Jasa/UKPBJ), the Government Internal Supervisory Apparatus (Aparat Pengawasan Intern Pemerintah/APIP), and relevant regional agencies in the procurement process.
"I hope that in the future all districts and cities will be able to strengthen this mechanism by involving UKPBJ, APIP, and the relevant regional agencies," he said.
Stronger coordination among agencies, Timur continued, is necessary to prevent procurement from being carried out in a sectoral manner. Better coordination would enable regional governments to identify potential problems at an early stage and develop appropriate solutions during both the planning and implementation stages.
PROGRESS IN DOMESTIC PRODUCT UTILIZATION: Acting Director for Regional Government Advocacy at
LKPP Firmansyah presents progress in domestic product utilization,
UMK-K participation, and E-Purchasing among regional governments in
North Sumatra. (PHOTO: Alexander AP Siahaan)
LKPP Presents Regional Government Progress
Meanwhile, Acting Director for Regional Government Advocacy at
LKPP Firmansyah explained that procurement consolidation is intended to create more efficient procurement processes while delivering greater benefits to the government.
Firmansyah presented the progress made by regional governments in North Sumatra in the use of domestic products, the promotion of UMK-K, and the utilization of E-Purchasing. Of the 33 district and city governments and the North Sumatra Provincial Government, 18 institutions have achieved the target of using 95 percent domestic products.
Meanwhile,
UMK-K participation in all regions of
North Sumatra has reached the 40 percent target. In terms of E-Purchasing, 23 regional governments have achieved the established target of 30 percent.
These figures indicate that differences remain among regions in implementing procurement policies. Therefore, regional governments that have yet to meet their targets need to strengthen their measures and coordination so that the indicators for domestic product utilization, UMK-K participation, and E-Purchasing can be achieved.
Firmansyah also discussed the implementation of the Clearing House mechanism at the regional government level. To date, only three regional governments have established Clearing Houses: the
North Sumatra Provincial Government, the Labuhanbatu Regency Government, and the South Labuhanbatu Regency Government.
"At present, only three regional governments have a Clearing House, namely the North Sumatra Provincial Government, Labuhanbatu Regency, and South Labuhanbatu Regency," he said.
Firmansyah explained that a Clearing House is an ad hoc discussion forum. The forum is intended to resolve various problems in the procurement of goods and services or to provide guidance and recommendations to the Budget User or Budget User Authority (Pengguna Anggaran/Kuasa Pengguna Anggaran – PA/KPA) in ministries, agencies, and regional governments so that procurement objectives can be achieved.
Through this forum, regional governments can discuss procurement problems by involving institutions and individuals with the relevant authority and expertise required to address each issue. The mechanism can also help the government identify risks and determine appropriate solutions before procurement problems develop into more serious obstacles.
Strengthening procurement consolidation, optimizing the use of
domestic products, increasing
UMK-K participation, and developing Clearing Houses are part of regional governments' efforts to improve procurement governance. The
North Sumatra Provincial Government is working to ensure that these measures are not merely focused on meeting administrative targets, but also generate tangible economic benefits for communities and businesses in the regions.
(IDNC)REPORTER: Ahmad Zulfikar | EDITOR: Fik Sagala