Secretary General of the Ministry of Home Affairs Suhajar Diantoro has invited all parties - starting from the central government, regional governments, to the community - to prioritize spending on local products.
"That doesn't mean we can't buy others' (products). We must prioritize local products," he said here on Thursday.
He made the appeal after officially opening the 2022 Indonesia Maju (Indonesia Moving Forward) Expo and Forum, themed "Proud of, Love, and Use Indonesian Products,” which was held in a hybrid format at the Jakarta Convention Center on Thursday.
Prioritizing spending on local products will be in line with the instruction of President Joko Widodo, who has emphasized the importance of using local products, especially products made by micro, small, and medium enterprises (MSMEs), Diantoro noted.
The total state budget (APBN) is estimated at more than Rp2,000 trillion, while the overall regional budget (APBD) across Indonesia is projected to be more than Rp1,100 trillion, he pointed out.
Of the total amount, at least 40 percent of the budget allocated for the procurement of goods and services is expected to be spent on local products, he said.
If the realization could be higher, for example, 70 percent, it would be able to drive the economy more, especially in the MSME sector.
Moreover, MSMEs are the mainstay of the economy and support people's lives, he noted.
The government has issued several regulations to encourage spending of 40 percent of the budget on the procurement of local goods and services, especially those made by MSMEs, he said.
This encouragement is in accordance with Presidential Instruction (Inpres) Number 2 of 2022 concerning the Acceleration of Increasing the Use of Local Products and Products of Micro, Small, and Cooperatives in a bid to support the Proud of Indonesian-Made Products National Movement through government procurement of goods and services.
Another regulation issued in this regard is the Joint Circular of the Home Affairs Minister with the Head of the National Public Procurement Agency (LKPP) Number 027/1022/SJ and Number 1 of 2022 regarding the Proud of Indonesian-Made Products National Movement among regional governments. (Antaranews)