Optimizing Domestic Product Procurement Policy: A Case Study at the Ministry of Administrative and Bureaucratic Reform

DOI: https://doi.org/10.33650/guyub.v7i3.16204
Authors

(1) * Andre Rosi Pradita   (Politeknik STIA LAN Jakarta)  
        Indonesia
(2)  Hamka Hamka   (Politeknik STIA LAN Jakarta)  
        Indonesia
(*) Corresponding Author

Abstract


The Increasing Use of Domestic Products (P3DN) policy is a strategic government initiative aimed at strengthening domestic industries, reducing dependence on imported products, and supporting sustainable economic development through public procurement. However, its implementation at the Ministry of Administrative and Bureaucratic Reform (Kementerian PANRB) remains suboptimal, particularly in translating policy commitments into realized domestic product procurement. This community service program aimed to strengthen institutional capacity in implementing P3DN through a Participatory Action Research (PAR) approach. The program involved P3DN Team members, procurement officials, managers, and relevant stakeholders through participatory identification of implementation problems, action planning, implementation, monitoring, and reflection. Data were collected through semi-structured interviews, observations, focus group discussions, and document analysis. The intervention focused on strengthening understanding of TKDN requirements, improving procurement planning, developing monitoring mechanisms, and identifying strategies for collaboration with domestic industries. The results indicate that communication, institutional disposition, and bureaucratic structures generally supported P3DN implementation, while resource availability remained the main constraint, particularly regarding product availability, quality, technical specifications, price competitiveness, technological capability, and after-sales services. Program success was indicated by the availability of strengthened technical guidelines, an integrated monitoring and evaluation mechanism, P3DN indicators within institutional performance management, a strategic domestic product database, and a procurement roadmap. The program recommends sustained participatory monitoring, cross-institutional collaboration, and periodic evaluation to strengthen the readiness of procurement units and domestic industries and improve the consistency of P3DN implementation.

Keywords

Domestic Product Policy; Public Procurement; Policy Implementation



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