Jakarta, The Indonesia Post – President Joko Widodo said that Indonesia has become a trendsetter country in terms of using domestic products, even beating the United States.
“America just implemented it in January 2023 for the use of domestic products, and we have already done it a year ahead, so we are now trendsetters not followers,” said President Jokowi in his remarks at the inauguration of the BPP Hipmi 2022- 2025 in Jakarta, Monday.
The President explained that spending on domestic products by ministries/agencies, the central government, regional governments and SOEs reached IDR 762 trillion.
According to the Head of State, entrepreneurs in Indonesia can take advantage of this opportunity to develop their business.
“It’s very big and this is an opportunity, an opportunity for those of you who have good quality products,” said President Jokowi.
On the previous occasion, the Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan said the Government is targeting spending on domestic products (PDN) of 95 percent by displaying 5 million domestic products in e-catalogs by 2023.
In addition to encouraging the absorption of domestic products, Luhut explained that the Proud Made in Indonesia (BBI) affirmation is also expected to maintain demand for domestically manufactured products.
The government assesses that demand for domestic products is still strong following the achievement of the Indonesian Manufacturing Purchasing Managers’ Index (PMI) which also increased to 50.9 in December 2022, higher than the ten-year average and is projected to continue to rise in 2023 and 2024.
Furthermore, Luhut revealed the challenges of increasing PDN realization, namely the limited availability of PDN for import substitution, PDN production capacity, and the variants and number of products in e-catalogs.
Therefore, he stated that there are five aspects that must be improved in implementing the PDN business meeting of the BBI Gernas Affirmation Action in order to realize the Instruction of the President of the Republic of Indonesia (Inpres) Number 2 of 2022, namely sharpening the identification of needs for government spending products, increasing the number of industries or domestic MSEs. as import substitutes, increasing the number of domestic showcase participants, purchasing directly through e-catalogs and involving the general public. (mhn/bbs)
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