Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita stated that 95 percent of projects owned by state-owned enterprises (SOEs) must use domestic products.

According to Kartasasmita, this is a target mandated by President Joko Widodo (Jokowi) to optimize the Increased Use of Domestic Products (P3DN) program in 2024.

"The 95 percent (of P3DN) in 2024 targets state budget (APBN) and regional budget (APBD) (spending), and SOE projects must come from domestic products. That is the president's target," he remarked at the 2024 P3DN Award Kick-Off event here on Monday.

The minister elaborated that the target aims to revive the domestic industry by using budgets in ministries, agencies, and SOEs.

He explained that the target was given on the basis of the fact that the processing industry is the main production sector for development and the largest contributor to the national economy.

Hence, he believes that the target of budget spending on local products is appropriate.

"It is appropriate that the government sets a very high target. After all, the budget of ministries and agencies, local governments, and SOEs comes from taxes or public money. Hence, it would be better if the (budget) absorption is directed to domestic products that bring benefits to the community," he remarked.

Kartasasmita noted that his side will present awards for agencies or business entities that fulfill the obligation to use domestic products. This step aims to increase the commitment of ministries and agencies to optimize their spending on local industries.

Meanwhile, awards will also be given to domestic industry players that produce highly competitive products.

Kartasasmita stated that the commitment and realization of P3DN for domestic industries in the country will reach Rp1 thousand trillion by 2030.

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Translator: Ahmad F, Kenzu
Editor: Rahmad Nasution
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