Minister Of Industry Agus Gumiwang Targets 95 Percent Of SOE Projects To Use Domestic Products

JAKARTA - Minister of Industry Agus Gumiwang Kartasasmita targets 95 percent of projects owned by State-Owned Enterprises (BUMN) to use domestic products.

According to him, this is a target given by the President of the Republic of Indonesia Joko Widodo to optimize the program for Increasing the Use of Domestic Products (P3DN) in 2024.

The target of 95 percent in 2024 is that the entire APBN and APBD budget, as well as the 95 percent SOE project must come from domestic products. That's the President's target," he said at the 2024 P3DN Award Kick Off event in Jakarta, quoted from Antara, Monday, February 12.

He conveyed that the target aims to revive the domestic industry by using the existing budget in ministries and institutions (K/L), as well as SOEs.

The Minister of Industry assessed that the target given by the President was not wrong, this was because the processing industry, which is the main sector for production for development, was the largest contributor to the Indonesian economy.

So according to him, the 95 percent target of budget realization for local products provided by the government is appropriate.

"So it's not wrong if the government sets a very high target, after all, the budget for spending, whether it's ministries and institutions, local governments, and SOEs, all come from people's money, from taxes. So it would be better if absorption or spending were also directed at domestic products that bring benefits to the community," he said.

In addition, in his remarks, the Minister of Industry conveyed, to increase the commitment of K/L in Indonesia so that they can optimize budgets and expenditures for local industries, his party will give awards for institutions or business entities that meet the provisions of the obligation to use domestic products.

Meanwhile, awards will also be given to domestic industry players who have proven to produce highly competitive products.

The Minister of Industry said the commitment and realization of P3DN for industries in the country in 2023 reached IDR 1,000 trillion.