Kemenlu Encourage Indonesian Entrepreneurs Go-International By Following Procurement Of Goods And Services At The United Nations

Business Action, Jakarta - The Ministry of Foreign Affairs (Kemenlu) encourages Indonesian entrepreneurs to take advantage of the procurement opportunities of goods and services at the United Nations (UN) that has a huge potential. With its capacity, Indonesian entrepreneurs are believed to be able to compete with other countries to win projects of procurement of goods and services at the United Nations.

"An Indonesian entrepreneur needs to optimally utilize the opportunities for procurement of goods and services at the United Nations, because the opportunities are large and Indonesia has the capacity to do so," Anita Luhulima, Acting Director General of Multilateral Cooperation of the Ministry of Foreign Affairs said in a speech at the UN's Goods and Services Business Procurement Seminar at Hotel Aryaduta Jakarta, August 3, 2017.

Based on data released by United Nations Global Market in 2016, the total value of procurement of goods and services of Indonesian companies in the United Nations is US $ 106 million or Rp1, 4 trillion. This value is the highest among ASEAN member countries, which in the last five years has never reached US $ 100 thousand per year. However, this number is still very small when compared with the potential that exists. The total value of procurement of goods and services made by the United Nations reached US $ 17 billion or worth Rp232 trillion, and Indonesia is only able to reap less than 1%.

"Indonesia's position as the largest supplier of goods and services to the UN among ASEAN countries directly shows Indonesia actually has the ability. Only now remains how to expand penetration or seek opportunities in other business lines that have not been followed by many other countries, "said Anita.

The UN Procurement Director, Dmitry Dovgopoly, who is the resource person reveals the potential for large procurement of goods and services at the UN Maintenance Mission (MPP). "Every year we spend US $ 8 billion on MPP PBB which currently has 100 thousand troops spread all over the world, especially Africa". "We urgently need quality products to meet our concerns, such as armored vehicles, tents and security services. In the near future, we also plan to procure tires on a large scale, "he said.

Dmitri said that procurement at the UN is not done centrally. That is, the UN office and its agencies in Indonesia can also make procurement independently. Some of the products that have been the main needs of UN agencies are vehicles, medicines, snacks, communication devices, cargo services, and air transport. Dmitri also underscores the principles of procurement at the UN, such as justice, transparency, and international competition. "This ensures the product is the best quality product", said Dimitri.

The same thing was also conveyed by Charu Mehta, the representative of the UN office in Indonesia who also became a resource. "It is time for closer cooperation built between the UN and the private sector, because it gives benefits to both parties".

The business seminar organized by the Directorate General of Multilateral Cooperation of the Ministry of Foreign Affairs in collaboration with the United Nations office in Indonesia. This seminar is the contribution of the Ministry of Foreign Affairs to increase the participation of Indonesian entrepreneurs in various UN procurement projects. The seminar consists of three sessions discussing procurement opportunities at the UN, UN procurement mechanisms, and experience with companies that have already become UN partners. In the last session, participants are given the opportunity to conduct business consultations with UN agencies in Indonesia.

In addition to these two speakers, the seminar was also filled with speakers from PT Bank Mandiri (Persero) Tbk, PT Pura Barutama, and PT Chitose. Also present were Deputy for Strategic Policy and Procurement Policy of LKPP Robin Asad Suryo, representative of KADIN, and more than 100 seminar participants from various business lines such as transportation, IT, telecommunication, healthcare, hospitality, consultant , And cargo services.