Wednesday, 23 March 2022 11:18

Economic Growth Hoist, Local Product Shopping Targeted at 80%

The government continues to optimize the purchase of domestic products, especially those from Micro, Small and Medium Enterprises (MSMEs). This step is a follow-up to the affirmation of the purchase and use of domestic products. The target for purchasing domestic products is the government's expenditure on goods/services of Rp. 400 trillion. The government continues to optimize the purchase of domestic products, especially those from Micro, Small and Medium Enterprises (MSMEs). This step is a follow-up to the affirmation of the purchase and use of domestic products. This policy is also to support the Proudly Made in Indonesia program and a form of government support for domestic industries. The target for purchasing domestic products for government goods and services spending in 2022 is IDR 400 trillion. Minister of Industry Agus Gumiwang Kartasasmita said his party was targeting the achievement value of using domestic products through the procurement of goods and services by 80 percent. "We expect the same commitment from other mandatory users of domestic products to set targets for achieving the use of domestic products," he said at the 2022 Domestic Product Shopping Business Matching event, Tuesday (22/3/2022).


The Minister of Industry said that the central government's budget, especially for goods and capital expenditures through the 2022 State Budget, amounted to Rp 538.9 trillion. The budget can be used as much as possible for domestic product spending, which does not include local government spending. "If it is added to the potential for goods and capital expenditures for regional governments through the 2022 APBD of Rp 532.5 trillion, then the total potential for goods and capital expenditures alone will reach Rp 1,071.4 trillion," he said in a written statement. Moreover, this potential will be even greater if it is added to SOE spending. If, said the Minister of Industry, this enormous potential can be utilized as much as possible by the domestic industry, there will be a multiplier effect whose benefits will be greatly felt for the progress of industry and the domestic economy, especially for Small and Medium Industries (IKM). Based on the simulation results conducted by BPS, the impact of purchasing domestic products worth Rp. 400 trillion can increase national economic growth by 1.67 to 1.71 percent. "So, if in 2021 there is economic growth of 3.69 percent, then by maximizing the use of domestic products, the Indonesian economy can be boosted by 5.36 to 5.4 percent," he said. Therefore, continued the Minister of Industry, in order to achieve brilliant economic growth, cooperation is needed in the success of the import substitution program and replacing it with domestic products. "We must encourage the domestic industry to be able to meet domestic needs, especially the needs of government and BUMN spending," he added.  The strategic step taken by the Ministry of Industry in optimizing the Increase in the Use of Domestic Products (P3DN) program is to organize a Business Matching for Domestic Product Shopping. This activity is expected to increase the purchase and use of domestic products by government agencies. Meanwhile, domestic industry players or MSMEs, IKM, and Artisans will get market guarantees so they can prepare their production to meet the government's market needs.

Source: https://m.republika.co.id/amp/r94yeg415

 

 

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