It’d make the most sense for the Dutch government (or DAWO) to have their own Forgejo instance if the goal is data sovereignty.
edit: looks like this was originally the case and then they moved?
We can insist everyone self-hosts everything, but is it worth it? Do you have your own email? It's quite normal for a government agency to contract a third party to supply e.g. furniture, instead of chopping its own wood.
clearly shows the need for federated forges, where you get to decide on your own rules but you still benefit from interacting with a broader set of collaborators.
They use both. https://code.overheid.nl/MinBZK?q=dawo&sort=alphabetically as the official source, and https://codeberg.org/DAWO for the community parts.