Indonesia e-Procurement for Medical Devices
The e-Katalog is an Indonesian-language online procurement platform managed by the Government of Indonesia (GOI) Goods and Services Procurement Policy Agency (LKPP), which allow public hospitals and government institutions to purchase required goods or services for various industry sectors, including medical devices. The e-Katalog was established to increase transparency and prevent corruption in public procurement.
The GOI implemented significant structural and procedural changes to the e-Katalog resulting in a shift in its medical device mechanism. Previously, LKPP managed the national e-Katalog for all products procured by government institutions. The recent procedural changes have created sectoral e-Katalogs, and now the procurement of medical devices, health-supporting tools, and household health products are no longer be reviewed by LKPP but by the Ministry of Health (MOH). Other industry sectors could see similar impacts.
In managing the sectoral e-Katalog, the MOI will work closely with LKPP and the Corruption Eradication Commission (KPK) to implement it in a professional, measurable, fast, precise, and directed manner to prevent corruption.
The following are some of the structural changes of this sectoral e-Katalog:
1. Manufacturers or their local agents can set their product prices in sectoral e-Katalog. Previously, under the National e-Katalog, pricing was set through negotiations with LKPP or the MOH, which restricted the price to a controlled markup from landed cost. Eliminating the price negotiation meeting gives complete price control to the manufacturer and is crucial in getting more products on the system faster.
2. The number of medical device categories that can apply to the sectoral e-Katalog will be increased. The MOH set a target of 20,000 products in the sectoral e-Katalog by June 2022. Product categories specified for 2022 enrollment have expanded to 1,482 types of medical devices.
3. The enrollment time has been extended. The enrollment opens from February 11 to November 30, 2022, and will continue the following year.
4. Sectoral e-Katalog comes with a simplified application process. The requirement for any documents to be authenticated by the Indonesian Embassy in the country of origin has been eliminated. It will significantly reduce the time for application preparation.
5. The discrepancies in product categorization between the Import License and e-Katalog application have decreased as the application will be reviewed by the MOH and not the LKPP.
Access to sectoral e-Katalog for medical devices is still available via the existing national e-Katalog site https://e-katalog.lkpp.go.id. There are also options to access ‘national’ and new ‘sectoral’ and ‘local’ sub-sites.
For more information, please kindly contact: Commercial Specialist Mrs. Pepsi Maryarini (Pepsi.Maryarini@trade.gov)