"During the working meeting, President Joko Widodo (Jokowi) said that we must utilize domestic products. Moreover, during this pandemic, the movement of goods has not been easy, therefore, the President hopes that we can reduce our dependence on imports," head of the Center for Increasing the Use of Domestic Products (P3DN) at the ministry, Nila Kumalasari, said.
She made the remarks at the 'Socialization of the P3DN Program to Increase the Use of Domestic Products to Support Regional Economic Growth' event in Solo, Central Java, on Tuesday.
The government is hoping that the effort would reduce imports of goods that can actually be made by domestic industries, Kumalasari explained.
"Specifically, the President has ordered spending of Rp400 trillion in 2022 for domestic products and micro, small, and medium enterprises (MSMEs)," she said.
In the Rp1,000-trillion budget for 2022, Rp532.5 trillion has been allocated for goods and capital expenditure that can be optimized to purchase domestic products, the official disclosed.
"If the government asks to spend Rp400 trillion, it means that 75 percent of the State Budget will be absorbed for domestic products and MSMEs. It has been stated that it is mandatory for all ministries, institutions, State-Owned Enterprises (SOEs), and regional SOEs to use domestic products," she said.
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By increasing spending, the domestic industry could hire potential workers and the unemployment rate would decline, she noted.
"Economic recovery could go faster, as well," Kumalasari added.
She said the P3DN Center is optimistic that the domestic industry will be able to meet market needs as long as there is demand.
"If there is no demand, the industry will not grow. If there is demand, we believe the industry is ready to serve the needs," she remarked.
Separately, deputy for law and dispute resolution at the Government Goods/Services Procurement Policy Institute (LKPP), Setya Budi Arijanta, said that in 2021, the realization of domestic industrial spending was still low at less than 31 percent of Rp1,200 trillion.
"The provisions on government spending are clear; if the needs of all local governments can be met by domestic products, then imports are not allowed. For the quality of domestic products, we must learn from China and Korea," he added.
Meanwhile, Surakarta Mayor Gibran Rakabuming Raka said there were several superior industrial products being manufactured in Solo, including by a stationery factory called Kiky and a mask factory.
"We will push MSME readiness to meet government spending in this year. For example, we are prioritizing (businesses in) the education sector, such as the stationery industry," he added.
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Translator: Aris Wasita, Resinta S
Editor: Suharto
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