President Jokowi Tells Gov’t Institutions to Enforce Discipline over Domestic Product Spending

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 15 Maret 2023
Category: News
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President Jokowi opens the 2023 Business Matching of Domestic Products, at Istora Senayan, the Bung Karno Sports Complex, Jakarta, Wednesday (03/15). (Photo by: PR of Cabinet Secretariat/Agung)

President Joko “Jokowi” Widodo urged central and regional governments as well as state-owned enterprises (BUMN) to remain disciplined in implementing policies to increase domestic products spending.

“The key lies in the implementation. The discipline in realizing what we have discussed in every meeting. As I recalled, this is the fourth time I talked about the spending of domestic products,” the President stated at the Opening of the 2023 Business Matching of Domestic Products, at Istora Senayan, the Bung Karno Sports Complex, Jakarta, Wednesday (03/15).

The President also asserted that the state budget received from taxes, dividends from SOES, royalties from mining, and non-tax state revenue (PNBP) must not be spent to buy imported products.

“There are so many purchases of imported products, while the source of these purchases comes from the state budget. We should get this issue straightened out,” he stressed.

According to the President, the use of domestic products has become the Government’s concern as a strategic policy to boost both national economic growth and the development of micro, small, and medium enterprises (MSMEs).

“As Coordinating Minister for Maritime Affairs and Investments and Minister of Industry conveyed, 95 percent of the goods and services budget ceiling must be spent on domestic products. If we can do this, the domestic industry and MSME industry will all live and develop,” he asserted.

On that occasion, the President also expressed appreciation for significant increase in domestic products included in the e-catalog.

Based on a report by Head of the Government Goods/Services Procurement Policy Institute (LKPP) Hendrar Prihadi, the number of domestic products in the e-catalog increased from 50 thousand to 3.4 million products.

“I encourage ministries/agencies, state-owned enterprises, region-owned enterprises (BUMD), provincial, municipality, and regional governments to look at the e-catalog and buy. What is the point of us collecting the products in the e-catalog?” he stressed.

At the event, the President also underscored that the procurement of military uniforms for the Indonesian National Military (TNI) and the Indonesian National Police (POLRI) must use domestic products since Indonesia produces these uniforms.

“For Ministry of  Defense and the POLRI, we can produce military uniforms and export them to several countries, instead, we buy them from other countries. We can even manufacture shoes and weapons. For sophisticated things such as fighter planes, go buy from the outside because we cannot manufacture them yet. But we can make weapons, bullets, and shoes,” he remarked.

On the occasion, the President also handed over the award on the using of domestic products by ministry/agencies, regional government, state-owned entreprises. The award recipients are as follows:

– The Best User of Domestic Products in the category of Ministries/Agencies with the Largest Budget: Ministry of Public Works and Public Housing (PUPR);
– The Best User of Domestic Products in the category of Provincial Government: DKI Jakarta;
– The Best User of Domestic Products in the category of Regency/City Government: Bekasi City;
– The Best User of Domestic Products in the category of State-owned Enterprises: PT Semen Indonesia (Persero) Tbk;

For the record, the 2023 Business Matching of Domestic Products implementation aims to facilitate the meetings between institutions that use domestic products and domestic industrial businesses.

The event will take place on March 15-17 2023 with the concept of One Stop Event, which is held in one place with various agendas that carry the topic of the importance of using domestic products.

The participants of this year’s event include commitment-making officials (PPK) in work units, industry associations, goods/services procurement associations, producers from upstream to downstream, and providers. (TGH/UN) (RIF/HD/LW)

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