"The people's money should not be bought for imported products, but it should be bought for MSME products. It can trigger economic growth," he remarked while giving a briefing during an affirmative action of the Proud of Made in Indonesian Products (BBI) in Bali, Friday, as witnessed virtually .
The head of state believes that domestic MSMEs will continue to thrive.
The president emphasized that the government was paying significant attention to providing a stimulus from the government's and BUMN's goods and services spending program to reach Rp400 trillion in 2022, among others.
Jokowi noted that the rise of MSMEs was influenced by three supporting factors in terms of financing, specifically from the state budget (APBN), regional budget (APBD), and state-owned enterprises (BUMN) budget.
Of these three factors, the president is optimistic that the stimulus for MSME players would be realized in the end of May 2022.
For the implementation mechanism, the head of state affirmed that 40 percent of the spending in the APBN, APBD, and BUMN budgets will be used for spending on domestically-produced MSME products.
The president remarked that as much as 40 percent of the total Rp526 trillion of the expenditure on goods and services for ministries and agencies in the APBN would be allocated to the MSME sector.
The same will be applicable in the case of the APBD that reaches around Rp535 trillion annually. As much as 40 percent of the expenditure on goods and services from the APBD will be used for the MSME sector. Moreover, as much as 40 percent of the Rp423 trillion of the SOE budget expenditure will also be utilized for the MSME sector.
"Those are all our budgets," President Jokowi stated.
According to the head of state, the ability of domestic MSMEs to create products is already good. Every product manufactured by local MSMEs has quality that can compete with those of foreign products.
Local products of good quality include CCTV cameras, medical devices, agricultural tools and machines, chairs, portable computers, beds, and tables. Hence, these local products are suitable to be used for productive activities.
"We are already advanced, and many of the products can be produced by our MSMEs," the president remarked.
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The head of state emphasized that sanctions would be imposed if stakeholders failed to implement the budget allocation policy for spending on MSME products.
The sanctions comprise slashing the Special Allocation Fund (DAK) and the General Allocation Fund (DAU). The president also accentuated that he would not hesitate to replace the leaders in ministries/agencies and BUMN that failed to implement the directives related to the empowerment of MSMEs.
In addition, the head of state remarked that the regional governments failing to implement the budget allocation will be announced to the general public to create a deterrent effect for the related parties.
"Later, the Financial and Development Supervisory Agency (BPKP) will monitor how much of the target has been achieved. If the target has not been achieved, then the BPKP will have to make several efforts," the president stated.
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Translator: Indra AP, Azis Kurmala
Editor: Rahmad Nasution
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