President Joko Widodo or Jokowi asked all ministers, heads of institutions, to regional heads to reduce the procurement of imported goods. Jokowi wants every agency to encourage the use of domestic products in the procurement of goods. The President emphasized the importance of spurring national economic growth by utilizing the State Revenue and Expenditure Budget (APBN), the Regional Revenue and Expenditure Budget, as well as the BUMN budget through the use of domestic products.
"We don't need to be grandiose, just 40 percent of it is deflected and it can spur economic growth. We buy goods domestically, which means there will be investment, which also means creating jobs. Previously, it was calculated that it could open 2 million jobs," said President Joko Widodo, quoted from a written statement, Saturday (26/3/2022). Jokowi's statement was made at the Presidential Instruction to Ministers, Heads of Institutions, and Heads of Regions and State-Owned Enterprises on Affirmation Actions Proudly Made in Indonesia, in Bali.
In this activity, the President targets that until May 2022, a budget of Rp 400 trillion can be used to purchase goods from within the country. The President also asked the Government Goods and Services Procurement Policy Institute (LKPP) to provide various kinds of products needed by the Government in e-catalogs. On a different occasion, the Coordinating Minister for Economic Affairs Airlangga Hartarto said that the Government always encourages MSME players to join the digital platform through the Proudly Made in Indonesia National Movement program. By the end of 2020, there were 11.7 million MSMEs on board to online businesses, and it is hoped that by 2030, the number of MSMEs that go digital will reach 30 million businesses. Furthermore, the Coordinating Ministry for the Economy is also tasked with coordinating the improvement of regulations and ecosystems in the economic sector in the context of accelerating P3DN, including through the preparation of a Draft Presidential Instruction on the Acceleration of P3DN and UMK and Cooperative Products, in the context of the success of the Proudly Made in Indonesia National Movement for Government Procurement of Goods and Services.
From the MSME side, the Government continues to be committed to supporting MSMEs to be more resilient and able to advance to class. This commitment can be seen through various trainings, financing, to government regulations that favor MSMEs. This is done because MSMEs have a very large role for the national economy, which contributes more than 61 percent of Indonesia's GDP and absorbs 97 percent of the total national workforce. The government also continues to issue various policies that favor MSMEs, such as providing financial support such as People's Business Credit (KUR), Micro Business Productive Assistance (BPUM), Non-KUR Interest Subsidies, and others to ensure MSMEs are fully recovered and can go to class.
"Thus, it is hoped that Indonesian MSMEs can start to rise. In 2021, 84.8 percent of MSMEs have returned to normal operations. In addition, during the pandemic, it was recorded that 40 percent of MSMEs used digital technology to market their products and felt an increase in income," said Coordinating Minister Airlangga.
