Rachmat Gobel Supports The Utilization Of The State Budget For Domestic Product Expenditure

JAKARTA - Deputy Chairman of the Indonesian House of Representatives for Coordination of Industry and Development (Korinbang) Rachmat Gobel stated that the Indonesian House of Representatives (DPR-RI) fully supports the use of the State Revenue and Expenditure Budget (APBN) for spending on goods/services for local (domestic) products, in order to advance the national industry.

"For products that have been produced domestically, the State Budget (APBN), Regional Budget (APBD), and SOEs (BUMN)/Regional-owned Enterprises (BUMD) expenditures must be for domestic products. This will have a good effect on the progress and prosperity of the Indonesian people," he said in a written statement, in Jakarta, quoted from Antara, Friday, August 26.

Rachmat Gobel supports and appreciates President Joko Widodo (Jokowi)'s statement regarding the necessity of APBN funds for spending on domestic products, as he conveyed at the Indonesian Chamber of Commerce and Industry, August 23, 2022.

On that occasion, President Jokowi even mentioned that there were around 842 imported products in the e-catalog that had to be dropped because domestic products could already be fulfilled.

"This must be carried out by their subordinates. Ministers must coordinate so that state fund spending, including SOE and BUMD spending, is channeled to domestic products. In addition, it can encourage foreign investors to invest in Indonesia," said Rachmat Gobel.

The former Deputy Chairperson of the Indonesian Chamber of Commerce and Industry said that the number of 842 products in the e-Catalog is a large number. As an industrialist, he highlighted that there are a number of products that can be produced domestically but are imported, such as iron and steel, medical equipment, electronics, lamps, and so on.

"By stopping imports, it will encourage producers to open industries in Indonesia," said the former Trade Minister. In addition, he continued, it will create employment opportunities, revive MSMEs, and create an ecosystem of a business family.

"This means that there is a transfer of skills, transfer of knowledge, transfer of technology, and of course building people's prosperity, building economic equality. Also building the quality of human resources. These are strategic points from using domestic products. Not just economic transactions, but building Indonesian civilization," said the Nasdem Party politician.

Furthermore, Rachmat Gobel, reminded the government that it must also be serious about building an environmentally friendly industry in line with the 2030 FOLU Net Sink target.

"This is a matter of realizing the industry's commitment to carbon sequestration, both in terms of the process, raw materials, and the carbon trade. There needs to be a side from the government towards environmentally friendly industries by giving priorities and other incentives," said Gobel.

He said industries that are not environmentally friendly will cause social and health problems. "In the end, it reduces the quality of human resources and sucks up state budget funds because the environment is dirty and people are suffering from diseases," he said.