The use of domestic products in government spending is mandatory if the Domestic Component Level (TKDN) of the product reaches 40 percent
Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita has said that the government is continuing to promote the use of local products among the public and through government spending as part of efforts to accelerate national economic recovery.



The efforts are part of the implementation of the Program for Increasing the Use of Domestic Products (P3DN).



"The use of domestic products in government spending is mandatory if the Domestic Component Level (TKDN) of the product reaches 40 percent," Kartasasmita said in a statement received in Jakarta on Tuesday.



According to the Industry Minister, this is the right time for small and medium enterprises (SMEs) to take advantage of the opportunity to procure government goods and services.



“The Ministry of Industry also provides facilitation of TKDN certification so that it can be utilized by small and medium industry (IKM), so that it can be connected to the supply chain of large industries and the procurement of government goods and services. The Government Procurement of Goods and Services Agency (LKPP) data states that 1,505 MSME actors are registered with the Government Procurement Regulatory Agency,” he said.



The Minister of Industry is hoping that the implementation of the e-Smart IKM program would help IKM actors enter LKPP e-purchasing, he added.


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"We want all stakeholders and industry players to work together to support IKM products," Kartasasmita said.



He also said a positive signal for the industrial sector could emerge in the future, as illustrated by the IHS Markit data.



The value of Indonesia's Manufacturing Purchasing Managers Index (PMI) in May, 2021 climbed to a record high of 55.3 from 54.6 in April, 2021. May also marked the seventh consecutive month of an expansionary position on the index.



PMI figures for May this year were also higher compared to China, Japan, Korea, and India. (INE)


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Translator: Sella P, Azis Kurmala
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