Market Opportunities for Digital Procurement of Goods and Services for Village-Owned Enterprises in Disadvantaged Regions

Abstract

E-catalogs and online shops are important programs from the government to increase transparency and efficiency in the goods and services procurement system. However, it is very unfortunate that Badan Usaha Milik Desa (BUM Desa) or Village-Owned Enterprises in disadvantaged regions have not taken full advantage of this opportunity. The main challenges are the lack of BUM Desa products registered in the e-catalog as well as regulatory obstacles. With great potential in the village economy, especially in disadvantaged regions, it is necessary to increase the involvement of BUM Desa in the e-procurement ecosystem.
This research uses data collection methods from literature studies, secondary data from official reports, and interviews with BUM Desa actors. The analysis method used are descriptive analytic and SWOT. The results of the analysis show that demand for goods such as office stationery and food/drinks dominates the demand and supply aspects of procurement of goods and services, while the contribution of BUM Desa in disadvantaged regons is still very minimal. Some of the challenges faced are inadequate digital infrastructure and knowledge as well as complex regulations.
The main recommendations based on the results of the SWOT analysis are to accelerate the digitalization of goods and services procurement through intensive training and infrastructure support, as well as closer collaboration between the central, regional, LKPP and Village BUM governments to increase human resource capacity and legality. Preparing more inclusive regulations and simplifying administrative processes is also needed to accelerate the role of Village BUMs in the digital goods and services procurement system in every underdeveloped region.