Remarks of President of the Republic of Indonesia at the Inauguration of the 2023 Business Matching of Domestic Products at Istora Senayan, Gelora Bung Karno, DKI Jakarta Province, March 15, 2023

Bismillahirrahmanirrahim.

Assalamu’alaikum warahmatullahi wabarakatuh,
Good morning,
May peace be upon us all,
Om swastiastu,
Namo Buddhaya,
Greetings of Virtue.

Distinguished Coordinating Ministers, Ministers, Deputy Ministers of the Indonesia Onward Cabinet;

Distinguished Head of the National Public Procurement Agency (LKPP), Chief of the Indonesian National Police, all Governors, Regents, and Mayors;

Ladies and Gentlemen.

We all have to realize that global emergencies are still a serious threat. Global uncertainties also create unpredictable risks that are difficult to calculate. To that end, all of us must work hard to prevent our country from existing global threats and risks. We observe that a few days back, unexpected things happened; US-based Silicon Valley Bank filed for bankruptcy. Everything is horrible. One bank filed for bankruptcy, another bank goes bankrupt. The next two days, Signature Bank collapsed. All countries are now waiting to see this domino effect. Thus, we have to be cautious.

I have reminded all of you many times. The State Budget is sourced from: tax revenue from people, dividends from state-owned enterprises, royalties from mining, as well as non-tax revenues. It is not that easy to collect them. Then, we bought imported products. We bought imported products, didn’t we? To that end, I always remind all of you about this.

At first, I was surprised to see that we made a lot of purchases of imported products using the State Budget. This is what we want to evaluate. The policy of purchasing domestic products is not only implemented in our country. We have started in 2022, and we can also see that the US did the same thing in 2023. You can try to search and read about it.  The US announced that it will prioritize to buy domestic products in government spending. We have started it in 2022. But in the future, the key lies in the implementation. The discipline in realizing what we had discussed in several meetings.

As I recalled, this is the fourth time I talked about the spending of domestic products. I always talk about it. Why? Because I notice that it is as a very strategic step in boosting our economic growth.

I am glad that earlier Head of the LKPP Mr. Hendi reported to me. I remember when I first checked it out, there were only 50,000 domestic products listed in the e-Catalog. This morning I asked him, “Mr. Hendi, how many domestic products have been listed in our e-Catalog now?” As many as 3.4 million products have been listed in the e-Catalog, he said. From 50,000, it has jumped to 3.4 million in a very short time, just over a year.

I call on all of you. Since the domestic products have been listed in the e-Catalog, please buy them. Do not let them just be displayed there.  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?

As Coordinating Minister for Maritime Affairs and Investments and Minister of Industry said, 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 enliven and develop. We don’t have to find foreign investors, if it works. Investor serves as additional aspect. However, by spending in domestic products, our economic growth will boost and our domestic products can be used by ourselves.

For Ministry of Defense and 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 if we can make weapons, bullets, and shoes, why do we have to import them?

I received a report from Coordinating Minister of Maritime Affairs and Investment General Luhut Binsar Pandjaitan. He said, “Mr. President, since I have been a soldier until now, why are the suppliers still the same?” The more suppliers there are, the better it will be, considering that the price will definitely be more competitive. Later, I will check whether it is true or not.

In addition, the use of local government credit card. In this digital era, it should be able to be used. If we can use them, then we can truly be independent. Be cautious, we all remember the sanctions from the United States to Russia related Visa and Mastercard. If we can use our own platform and everyone uses it, starting from the ministries/agencies, provinces, regencies/cities, it will be more helpful.

Don’t let me hear that only the cover is changed, while the inside remains imported goods, repackaged goods. Don’t you think that I don’t know about it. Be careful.

I order the Indonesian National Police to thoroughly check it. Please stop it. I also ordered Minister of State Apparatus and Bureaucratic Reform to formulate performance allowance based on the number of the use of domestic products in every state institution including ministries/agencies, provinces, regencies/cities.

Now the condition is better. Previously, we imported 80 percent of asphalt. Buton regency has a lot of supply. I visited Buton regency and I directly ordered Minister of Public Works and Public Housing, “We can not do this anymore. We built roads we have a lot of supply in Buton regency, but we imported it.” Now, he did a good job. “All asphalt products from Buton regency we buy through e-Catalog,” he said. Well done.

It will be check gradually so that it can be carried out optimal. In addition to performance allowance, a sanction also must be observed. The sanctions should be formulated, please Coordinating Minister for Maritime Affairs and Investment formulate the punishments for those who still purchase imported products by using State Budget, Regional Budget. Reward and punishment must be implemented.

That concludes my speech on this auspicious occasion.

By saying bismillahirrahmanirrahim, I hereby officially inaugurate the 2023 Business Matching of Domestic Products.

I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

(AP/HD/LW)