President Jokowi: We Must Love Indonesian Products
With a population of 270 million people, Indonesia has a huge domestic market and a huge purchasing power, according to President Joko “Jokowi” Widodo.
The President made the statement on Friday (05/03) during the 17th National Work Meeting of the Indonesian Young Entrepreneurs Association (HIPMI) at Bogor Presidential Palace in West Java province.
“We have a huge purchasing power. Our consumption index also increased to 84.9 percent in January 2021 after it dropped to 79 (percent) in October last year. Our household consumption has also shown a positive trend,” he said.
Furthermore, Indonesia has been listed in the top 15 countries with the largest Gross Domestic Product (GDP) worldwide in 2020 and a number of world agencies forecasted that Indonesia will be one of the top 5 countries with the strongest GDP in the world.
Indonesia’s economy in 2021 has been forecast to grow to 4.5-5.5 percent.
“Indonesia’s economic improvement supported on the demand side should not only benefit imported products, but it also should boost domestic product consumption so domino effects are created. Hence, the urge to move domestic economy is bigger,” said the President.
On that occasion, the Head of State once again encouraged the public to use Indonesian products and to be proud of domestic production.
At the same time, he added, the quality of domestic products should also be improved and the price should be competitive so they can compete against similar imported products.
“To achieve consumer loyalty to domestic products, there are requirements. If the price is competitive and the quality is good, we certainly can achieve it. Producers must continue to enhance the quality, improve the packaging, improve the design to follow the trend,” he said, adding that he has ordered his Cabinet to boost domestic product consumption.
“I always remind my Ministries and agencies, state-owned enterprises (BUMN). All BUMN must increase the Domestic Component Level. Government projects, BUMN projects should not use imported products. If possible, it should be locked. It will increase the demand for domestic products significantly,” he stated.
The President also appealed to the public to love and be proud of national products, while expressing belief that the move will grow the consumption rate of domestic products drastically.
Indonesia, he added, must be able to leverage the domestic market and huge public purchasing power to boost the national economy.
Despite encouraging Indonesian product consumption, the Head of State underscored that Indonesia adheres to economic openness.
“Let me assert that we are not a nation that favors protectionism because history has proven that protectionism leads to disadvantages. However, we must not fall victim to unfair practices of the global trade either,” he remarked.
The President further said that Indonesia always attracts investment and advanced technology to enter the country so they can open extensive job vacancies and transform technology. However, those are directed to mutually beneficial partnerships, he added.
“We must grow together. Do not let them benefit, while we take a back seat. Therefore, I always order (Government agencies) to partner them with the private sector, partner them with regional entrepreneurs, partner them with BUMN,” he said, adding that unfair practices must not happen, especially to the extent that it harms MSMEs.
“There are many predatory pricing practices. We must be vigilant against this. It can kill the small (businesses). I have ordered my Cabinet, particularly Minister of Trade, to watch it carefully,” he said. (TGH/UN) (DH/EP)