Gov’t Continues to Boost Local Product Use

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 23 Maret 2022
Category: News
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(Source: PR of Ministry of Industry)

In a bid to enhance national economic growth, the Government continues to boost the use of domestic products and push industries to fulfill the needs of the domestic market.

“We must push domestic industries to fulfill domestic needs, especially the needs of the Government and state-owned enterprises (SOEs),” Minister of Industry Agus Gumiwang Kartasasmita said at the 2022 Business Matching of Domestic Product Spending in Nusa Dua area in the resort island of Bali, Tuesday (03/22).

Agus pointed out that based on the simulation carried out by Statistics Indonesia, a Rp400 trillion purchase of domestic products can boost the national economic growth by 1.67-1.71 percent.

“If in 2021 the economic growth was 3.69 percent, then by maximizing the use of domestic products, Indonesia’s economy can rise by 5.36 to 5.4 percent,” he said, adding that the Government continues to optimize the use of domestic products, especially MSME products in order to support Bangga Buatan Indonesia (Proud of Indonesian Products) movement and domestic industries.

According to Agus, the target of domestic product purchases for government spending on goods and services in 2022 is Rp400 trillion.

Agus added that his Ministry has targeted an 80-percent achievement of domestic product uses through goods and service procurement.

“We expect the same commitment from other mandatory users of domestic products to set an achievement target of domestic product use,” he said.

Agus also pointed out that the Central Government budget, especially for spending on goods and capital, from the 2022 State Budget is Rp538.9 trillion, which can be optimized for spending on domestic products and does not include regional government spending.

“If a Rp532.5 trillion potential of regional government spending on goods and capital from the 2022 regional budgets is added to the calculation, the total potential of spending on goods and capital alone can reach Rp1,071.4 trillion,” he said, adding that the amount will be bigger if SOE spending is taken into account.

“If domestic industries can make the best of this huge potential, there are multiplier effects that will be felt by the growth of domestic industries and economies, especially small and medium industries (SMIs),” he remarked.

For the record, the Business Matching of Domestic Product Spending is a strategic measure taken by Ministry of Industry to optimize the domestic product use intensification (P3DN) program. This event is expected to increase purchase and the use of domestic products by government institutions.

Meanwhile, domestic industry actors or MSMEs, SMIs, and artisans will obtain guaranteed market access so they can prepare production to fulfill the needs of the government market.

The Business Matching event is also a part of the phase that has been divided into three stages. The first stage is the pre-Business Matching stage, which includes interconnecting data from Government applications, such as Ministry of Home Affairs’ SIPD, Ministry of Finance’s SAKTI, and the National Public Procurement Agency’s SIRUP, to Ministry of Industry’s P3DN Information System (SIP3DN).

The next stage is Business Matching and the final stage is post-Business Matching, which includes an in-person or virtual follow-through Business Matching, monitoring, and control.

Agus expressed hope that the Business Matching event can bridge government institutions and SOEs as domestic product users to fulfill their spending needs through domestic industries.

“Virtual Business Matching can be accessed through the portal that we have prepared, which is Ministry of Industry’s dashboard, which contains information on potential purchases, the number of packages, and the number of domestic product producers,” he remarked. (PR of Ministry of Industry/UN) (DH/MMB)

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