The industry is expected to reduce the use of imported construction materials as long as the material specification can be met with domestic productsJakarta (ANTARA) - The Ministry of Public Works and Public Housing has urged construction industry actors to prioritize the use of materials made in Indonesia in carrying out infrastructure development.
"The industry is expected to reduce the use of imported construction materials as long as the material specification can be met with domestic products," a ministry official, Yudha Mediawan, said.
The development of Indonesia's construction industry is considered to have an important role in the economy, he said at the Indobuild Expo 2022 in Tangerang, Banten, on Wednesday.
This is because the massive infrastructure development within the past few years has helped Indonesia catch up with developed countries.
Thus, it is important for the construction industry to utilize material resources that exist in Indonesia in an optimal manner to maximize the economic impact on the people.
One of the benefits of using domestic materials is that it can encourage the activities of the domestic raw material industry.
Local micro, small, and medium enterprises (MSMEs), as suppliers of building materials, would also feel the benefits if such an action is taken by the industry.
It could also help reduce the current account deficit in the national trade balance.
A similar measure has been undertaken by the ministry as a form of sustainable support for the local economy, Mediawan noted.
In 2022, the ministry aims to spend Rp80.48 trillion, or equivalent to 75.9 percent of the total budget ceiling of Rp106 trillion, on procuring domestic products.
As of November 12, 2022, the ministry has spent Rp71.5 trillion on domestic product purchases, and the initial procurement target is expected to be realized by the end of 2022.
While 2022 is not yet over, the ministry is also aiming to spend 95 percent of the total budget ceiling for 2023 of Rp118 trillion on domestic product procurement.
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Translator: Livia K, Fadhli Ruhman
Editor: Sri Haryati
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