President Joko Widodo has prohibited regents across Indonesia from buying foreign products in order to meet the needs of government projects. It is mandatory for the government project procurement to use local products. This was affirmed when he opened the Fifth National Conference of the Association of Indonesian Regency Governments at the State Palace in Jakarta last Friday (26/3). He emphasized that every existing project must use local products instead of foreign ones. He also explained that this is meant so that the government projects increase demand for the local products. Moreover, the government projects are usually of great value and require the procurement of large quantities of products.
According to President Joko Widodo, if the demand for the local products increases, consumption will also surge and the industries will inevitably boost the speed of their production at the factory. This will increase industrial productivity. Likewise, the labour will be used up and even more able to be absorbed, so there will be no layoffs.
Previously, President Joko Widodo had also made calls of rejecting foreign products. The goal is that import floods do not occur in Indonesia. On the occasion, he also asked regents throughout Indonesia to provide good services for exports and investment because these two things are the key to economic growth in Indonesia. He reminded that the Investment Coordinating Board provides a license to be integrated electronically or online single submission, which is very fast. The Head of State asked that once the investment reaches the region, the process must also be done quickly. Given their importance, President Joko Widodo asked that exports and investment be paid close attention. He added that currently, the Job Creation Law and the supporting regulations have been promulgated. This makes it very easy for entrepreneurs to open up investment and jobs.