Not Only The Big Industry, The Ministry Of Industry Affirms The Double Impact P3DN Program To IKM

Expert Staff to the Minister of Business Climate and Investment Andi Rizaldi. Photo: Doc. Ministry of Industry

JAKARTA - The Ministry of Industry (Kemenperin) said that the Program to Increase the Use of Domestic Products (P3DN) could have a double impact or multiplier effect on various parties, including for industry players on a small and medium scale (IKM).

"The P3DN program does not only have an impact on large industries because downstream there are many small and medium-sized industrial-scale companies (IKM). The multiplier effect can be felt by many parties," said Expert Staff of the Minister for Climate Business and Investment Andi Rizaldi in a written statement, quoted Tuesday, May 9.

Andi said that the implementation of the P3DN program could also increase labor absorption, which had previously been reduced due to the impact of the COVID-19 pandemic on the company's condition, and returned to a position close to 20 million people.

He said, there was a commitment to spending on domestic products worth more than Rp1,000 trillion throughout 2023. This figure emerged in the 5th PDN Business Matching organized by the Ministry of Industry in collaboration with the Ministry of Defense in March 2023.

"Business Matching activities are the government's effort to bridge the interests between entrepreneurs and budget users," said Andi.

The purchase of domestic products (PDN) is said to stimulate industrial companies to increase the Domestic Component Level (TKDN) in a product, which then encourages the deepening of the industrial structure. This will attract investment in Indonesia, which will allow the expansion of job opportunities.

As daily chairman of the P3DN National Team, the Ministry of Industry urges every ministry/institution to form a P3DN team in their respective agencies. Meanwhile, for industry players, the Ministry of Industry encourages to disseminate information to their respective stakeholders regarding the ability to produce local products that are able to compete.

The Ministry of Industry also provides a TKDN certification budget that is currently prioritized for IKM players. In addition, imposing self-assessment in the issuance of TKDN certificates for small industries. "This is because P3DN has become a global issue. Other countries such as the United States have also begun to require the use of their domestic products," said Andi.

On the same occasion, Deputy for Tourism and Creative Economy Coordination, Odo RM Manuhutu, said that several things are still challenges in intensifying the P3DN program, such as promoting domestic industrial capabilities that must be more aggressive.

In addition, investment in the research & development (R&D) sector must also be encouraged if you want to achieve the GDP target of US$4.5 trillion in 2038.

Therefore, so that the P3DN program can run well, Odo appealed to the public to prioritize purchasing domestic products. Meanwhile, for manufacturers, especially large-scale industries, to prioritize R&D activities in order to increase TKDN.

Meanwhile, Secretary General of the Indonesian Brand Technology and Information Industry Association (AitIMI) Danny Harjono appreciated the government's alignment with local products. The reason is, the P3DN program can increase sales of the domestic laptop industry by up to 90 percent.

"In the future, the industry also expects consistent orders from the government for Indonesian brands. This can encourage the growth of the upstream industry," Danny concluded.