Jakarta (ANTARA) - Chief of the Presidential Staff Office (KSP) Moeldoko has stressed the need for the manufacturing industry to optimize the use of local content in production under the Increased Use of Domestic Production program to cut imports.

"As per the President's directives, the use of local content must be a priority," he said in Karawang, West Java, on Monday, while reviewing PT Mitrametal Perkasa' production facility for casting aluminum components and brake components for vehicles.

Moeldoko commended the company’s measure to use 95 percent local content in its production process. Further, 10 percent of the company’s products have been exported to countries such as Malaysia and Iran.

"This, of course, provides great benefits, both for project organizers and domestic industries that produce goods," he added.

Moeldoko also stressed the importance of improving production capacity and the quality of produced goods so that national industries can compete independently in the global market.

"The national industry must be able to tone down domestic market dependence on imported products. Hence, the quality must be competitive," he said.

Director of Operations and Non-operations at PT Mitrametal Perkasa Gede Agus Prayajana said that his company has been consistently developing a range of casting aluminum components, including brake components for trains as well as household appliances.

"When the automotive market crashed during the pandemic, (the demand for) household (items) products such as pots actually rose. That's what made us survive. On the other hand, 90 percent of the market is still domestic," he added.

The government's commitment to increasing the use of domestic products has been stipulated in Presidential Decree No. 2 of 2022.

The decree outlines efforts for prioritizing domestic products and products made by micro, small enterprises, and cooperatives in government procurement of goods and services to make the Proudly Made in Indonesia Initiative a success.

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Translator: Rangga Pandu A J, Mecca Yumna
Editor: Rahmad Nasution
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