Coordinating Minister Airlangga Encourages People to Use Domestic Products Instead of Imports

Menteri Koordinator Bidang Perekonomian, Airlangga Hartarto. (Foto: Dok. Kemenko Perekonomian)

JAKARTA - The Program for Increasing the Use of Domestic Products (P3DN) is one of the government's efforts to encourage people to use domestic products more than imported products.

P3DN should always be encouraged in the context of national economic recovery. The optimization of the P3DN program is expected to ensure the independence and stability of the national economy.

As an instrument for implementing P3DN, the Government has issued PP 29 of 2018 concerning Industrial Empowerment, which regulates the Domestic Component Level (TKDN) policy. The industrial sector is the driving force for the economy that makes Indonesia a producing country, not an importer, so that it can open up business and work opportunities, and has the power to accelerate equitable development and national resilience.

With TKDN, domestic products that have a total TKDN value and a Company Benefit Weight (BMP) value of at least 40 percent must be used in the procurement of government goods and services. Domestic producers or officials for the procurement of goods and services are encouraged to follow the provisions of the TKDN.

The government also continues to support the P3DN program in the procurement of goods and services that are needed by Ministries/Agencies.

"For example, currently being encouraged to use domestic Information and Communication Technology (ICT) products, including laptops and other office electronic products carried out by the Ministry of Education, Culture, Research and Technology, the Ministry of Religion, and the Ministry of Manpower", said the Coordinating Minister Economic Affairs, Airlangga Hartarto, at a virtual coordination meeting of the P3DN National Team working group, Monday, October 18.

State-Owned Enterprises (BUMN) as one of the pillars of the national economy has also shown great commitment in supporting programs to increase the use of domestic products as demonstrated by PT Pertamina (Persero) and PT PLN (Persero).

PT Pertamina (Persero) managed to record a TKDN achievement of 55.6 percent in 2020 and targets a TKDN achievement of 59.45 percent in 2021. Meanwhile, PT PLN (Persero) managed to achieve a TKDN value of 40.1 percent in 2020 and targeted TKDN achievement of 45 percent in 2021 and then 60 percent in 2025.

In addition to PT Pertamina (Persero) and PT PLN (Persero), the commitment to support the P3DN program was also shown by 32 other SOEs that we're able to record an average TKDN realization of above 50 percent with a total value of IDR 115.2 trillion in 2020.

"Through this coordination meeting, it is hoped that each Ministry/Institution will provide an overview of the P3DN Action Plan to optimize the use of domestic products and increase the commitment to implementing P3DN in their respective agencies", said Minister Airlangga.

The P3DN National Coordination Meeting also evaluates the work of each Pokja to date, discusses the preparation of the P3DN national team's work agenda/roadmap, and reviews the replacement/change of the nomenclature of the P3DN National Team Pokja members (institutions/positions or individuals).