The Success Story of How Albugo Participating in Government’s Sustainable Goods and Services Procurement
Albugo, a local downstream product by PT Alam Siak Lestari, has been successfully included in the catalog of Sustainable Procurement of Goods and Services (PBJ) by the Government. In general, Sustainable PBJ is an approach that integrates environmental, social, and economic aspects in its procurement process.
Sustainable PBJ is also regulated under the Presidential Regulation of the Republic of Indonesia Number 16 Year 2018, about Government Procurement of Goods and Services (PBJP), which was later revised by Presidential Regulation Number 12 Year 2021.
This regulation emphasizes three aspects which are economic aspect including the production cost or the life cycle cost. Social aspects including empowering small businesses, ensuring fair working conditions, empowering local communities/businesses, equality, and diversity. Lastly, Environmental aspects including reducing negative impacts on health, air quality, soil quality, water quality, and using natural resources in accordance with legal regulations.
Albugo underwent a long process to standardize as an eligible product in the Sustainable PBJ list. Even during the registration process, Albugo had to go through several stages. The first requirement was to register an e-Catalog account by PT Alam Siak Lestari to participate in the procurement process. Albugo itself is categorized by the government as a sectoral e-Catalog of the Indonesian Ministry of Health (Kemenkes), as it falls under the category of pharmaceutical products requiring direct supervision by Kemenkes.
The registration process begins with preparing company legality documents, business licenses, and product certificates. The second stage involves registration, where suppliers must register on the sectoral e-Catalog portal managed by the Government Procurement Policy Institution (LKPP). The third stage is document verification, where the sectoral e-Catalog team verifies the authenticity and completeness of the uploaded documents.
Once all documents are in order, the fourth stage is registering the product into the sectoral e-Catalog. This process includes entering product data, specifications, prices, and upload supporting documents such as quality certificates, which must be prepared very well in advance of registering on the sectoral e-Catalog.
Following successful registration in the sectoral e-Catalog, the next stage is product verification, where the sectoral e-Catalog team verifies compliance with applicable standards and specifications. After verification, Albugo can be listed in the sectoral e-Catalog. At this stage, government institutions can place orders for goods or services through the e-Catalog platform. Payment and reporting for transactions conducted via the sectoral e-Catalog are regulated according to relevant regulations. Suppliers are also required to report activities and transactions through the e-Catalog to the relevant authorities.
This long process is actually not as straightforward as it may seem. Even in its product marketing process, Albugo had to go through 6 stages to not only be listed in the e-Catalog but also to be a targeted product chosen by the government.
Starting with identifying market potential, through surveys and gathering information from relevant institutions. Then, promoting and presenting the Product by communicating the Albugo introduction to relevant institutions such as Regional General Hospitals along with doctors, to showcase Albugo as a superior and trustworthy product that can help the community recover quickly.
Personal approaches were even done in approaching key staff and heads of relevant institutions, in order to obtain valid procurement information and programs, ensuring the strategy is well-targeted. At the very least, this process helps build trust and good relationships.
PT Alam Siak Lestari also actively participated in every activity. Albugo participated to demonstrate commitment to improving healthcare services and introduce Albugo. During this process, price and contract negotiations typically occur. Lastly, to put extra care as the after-sales service for Albugo, providing technical support and customer maintenance to ensure user satisfaction with the product, including evaluations and follow-ups for future procurement processes.
Previously, the participation of local Micro, Small, and Medium Enterprises (MSME) products in Sustainable PBJ was due to the success of LTKL in building a supporting ecosystem, enabling MSMEs to further develop and participate in sustainable procurement efforts for goods and services.
In the initial phase, LTKL together with Bappenas and Instellar, held workshops resulting in policy recommendations to enhance the role of MSMEs and cooperatives in Sustainable PBJ for central and regional governments. It’s development was also prepared by the Policy Lab for Sustainable Procurement (PSLP) team and presented at the 2022 Indonesia Development Forum (IDF) in Bali.
From there, LTKL collaborated with the Sub-Directorate of Micro, Small and Medium Enterprises (MSME), Directorate General of Regional Development of the Ministry of Home Affairs, and APKASI to hold FGDs to agree on joint work plans in developing a roadmap for Sustainable PBJ. This process involved the Directorate of Micro, Small, and Medium Enterprises Development of Bappenas, the Directorate of Nation Building at the Ministry of Home Affairs, the Directorate of Business Climate Development and International Cooperation at LKPP, as well as the Facilitation Center for the Application of Environmental and Forestry Instrument Standards (Pusfaster) of the Ministry of Environment and Forestry (BSILHK), and the Deputy for Supply Chain Development of Micro Enterprises at the Ministry of Cooperatives and SMEs.
