Minister Of Industry Agus Gumiwang Aims For IDR 250 Trillion In Expenditures For Indonesian Local Products

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. (Photo: Doc. Ministry of Industry)

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang is eyeing IDR 250 trillion for the contract value of domestic product spending in the first quarter of 2024 by the central government and local governments at Business Matching in Sanur, Bali, March 4-7.

"In 2024, the potential for goods and capital expenditure from the APBN and APBD will reach IDR 1,223 trillion and that is also outside of BUMN and BUMD spending," said Agus Gumiwang on the sidelines of the opening of the 2024 Business Matching exhibition in Sanur, Denpasar, Bali, quoted from Antara, Tuesday, March 5.

At the opening of the event which brought together the owner of the budget and producer / business actor until Tuesday at 12.00 WITA, a commitment of spending on domestic products has been achieved to reach Rp90 trillion.

The value of this commitment is currently carried out by 2,167 work units with the number of incoming commitments reaching 87,538 data, based on the temporary dashboard of the domestic product shopping exhibition.

There are also government institutions that have the highest spending on domestic products at exhibitions for the time being, including the Ministry of Defense, the Ministry of Public Works and Public Housing (PUPR), the Ministry of Health, the Ministry of Law and Human Rights, and the Ministry of Education, Culture, Research and Technology.

On that occasion, the Ministry of Defense and State-Owned Enterprises also signed a contract for domestic product spending, including PT LEN Industri and PT Pindad.

The total realization of defense sector spending at the exhibition reached Rp9.38 trillion.

Agus Gumiwang added that based on data from the Government Goods/Services Procurement Policy Institute (LKPP), the commitment to use domestic products in 2023 reached Rp1,208 trillion for the procurement of government goods and services.

However, the realization is still below the commitment, which is IDR 659.61 trillion.

Even so, he believes that the realization is higher than this achievement because there is spending from third parties.

Previously, the Minister of Industry continued, in the implementation of the first similar event in 2022 in Bali, the realization of the value of the domestic product expenditure contract reached Rp. 100 trillion.

The realization then increased at the second exhibition at Istora Senayan Jakarta in 2023 to reach Rp180 trillion and until the first quarter of 2024 it was targeted at Rp250 trillion.

The Minister of Industry added that the domestic product shopping exhibition was attended by 3,162 people including representatives of local governments, central governments (ministeries/agencies) and representatives of SOEs as well as associations and industrial companies.

The domestic product on display is presented at 182 booths or an increase compared to the previous year's implementation of 109 booths.

Domestic products in the exhibition already have domestic component-level certificates (TKDN) with a variety of products including small industrial products, crafts, food and beverages, large-scale products such as medical devices, to transportation equipment.