Jakarta (ANTARA) - President Joko Widodo (Jokowi) has urged the Administrative and Bureaucratic Reform Ministry to provide performance allowances to ministries, agencies, regional governments, and government-owned enterprises that make the largest purchases of domestic products.

"I have instructed the Administrative and Bureaucratic Reform Minister (Abdullah Azwar Anas) to prepare the performance allowances. If it is rewarded by allowances, then surely, everyone will become motivated (to realize it),” he remarked.

At the inauguration of the 2023 Business Matching for Domestic Products in Istora Senayan, Jakarta on Wednesday, he lauded the Public Works and Public Housing (PUPR) Ministry as the ministry with the largest budget in purchasing domestic products.

Therefore, the ministry received the Intensification of Domestic Product Utilization (P3DN) Award on the same occasion.

In addition, the award was bestowed upon the Jakarta Provincial Government, Bekasi City Government, and state-owned cement company PT Semen Indonesia (Persero) Tbk for their absorption of several domestic products.

The president expects that the provision of performance allowances will encourage government institutions to increase their spending on domestic products.

Furthermore, he encouraged all ministries, agencies, provincial, district, and city governments, as well as state-owned and regional-owned enterprises to allocate 95 percent of their budget allocation for the procurement of goods and services to purchase domestic products.

"You do not have to seek investors if this (the P3DN program) can run well,” Jokowi affirmed.

He noted that being able to attract investors and secure investments is a good achievement, but if local stakeholders are committed to spending more on domestic products, then domestic industries will be able to develop faster.

Bolstering domestic industries, especially those run by micro, small, and medium enterprises (MSMEs), will also drive national economic growth, he affirmed.

On the occasion, the president said that the government would also impose sanctions on any ministries, agencies, provincial, district, and city governments, as well as state-owned and regional-owned enterprises that imported foreign products using the state budget (APBN) or regional budget (APBD).

He had called on Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, who concurrently serves as head of the P3DN National Team, to formulate the penalties.

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Translator: Mentari Dwi Gayati, Uyu Liman
Editor: Anton Santoso
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