Barriers to MSME Entry in Digital Government Procurement: An Analysis of NIB and INAPROC Account Requirements for Electronic Catalogue Version 6

Taufani Yunithia Putri; Muslim Nugraha

doi:10.61994/jsls.v4i2.2289

Authors

Taufani Yunithia Putri Faculty of Law, Universitas Sriwijaya
Muslim Nugraha Faculty of Law, Universitas Sriwijaya

DOI:

https://doi.org/10.61994/jsls.v4i2.2289

Keywords:

barriers to entry, E-Katalog Version 6, fair competition, market concentration, MSMEs

Abstract

The mandatory implementation of E-Katalog Version 6 integrated with INAPROC since January 2025 has created significant entry barriers for Micro, Small, and Medium Enterprises (MSMEs) in Indonesian government procurement. The platform requires providers to possess formal administrative documents, specifically distinguishing between the Business Identification Number (NIB) issued through the OSS system and the Taxpayer Identification Number (NPWP), alongside deeds of establishment and corporate documentation. However, only 32 per cent of Indonesia's 64.2 million MSMEs hold such formal licensing. To analyze the alignment of these registration requirements with the prevailing legal framework, this study employs an empirical legal research method (socio-legal approach) supported by statutory and conceptual approaches. The findings reveal that these restrictive administrative prerequisites generate severe barriers to entry and market concentration, creating conditions that distort fair business competition as regulated under Law No. 5 of 1999. Consequently, a limited number of registered providers dominate government transactions, resulting in unfair pricing, budget inefficiency, and potential state financial losses. The study concludes that regulatory harmonization through the simplification of INAPROC registration requirements and systematic socialization programmes targeting MSMEs are essential policy measures to mitigate market concentration, restore healthy competition, and ensure inclusive participation in digital government procurement.

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