JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said, based on the results of a study by economic researchers who worked with the P4DN of the Ministry of Industry (Kemenperin), every Rp1 spent on domestic products is able to generate a multiplier effect of 2.2 for the manufacturing sector. against the national economy.
This means that every Rp1 spent on domestic products has the potential to create economic output of Rp2.2.
"Thus, it has a significant impact on industry growth, employment absorption and increased added value in the country," said Agus as quoted from a written statement, Thursday, July 23.
Meanwhile, based on the simulation of the Central Statistics Agency (BPS), if government and SOEs spending on imported products of Rp400 trillion is replaced with domestic products through the same purchase value, the policy has the potential to increase national economic growth by 1.71 percent and generate additional economic output of Rp627.58 trillion.
"This shows that every rupiah spent on domestic products will provide much greater economic benefits for Indonesia than if it is allocated for imported products," he said.
For this reason, the Ministry of Industry continues to carry out reforms to the Domestic Component Level (TKDN) policy as part of the implementation of the Program for Increasing the Use of Domestic Products (P3DN).
As of July 21, 2026, the government has issued 56,555 TKDN certificates covering more than 7,000 industrial companies in Indonesia.
The reform was strengthened through the Minister of Industry Regulation (Permenperin) Number 35 of 2025 which simplifies the certification process to be faster, simpler, easier and more efficient without reducing the credibility of the verification and supervision process.
Agus said that the TKDN reform was built using four main pillars, namely incentives, simple, easy and fast. Through this reform, it is hoped that the certification process can be faster, there is ease of doing business while strengthening the competitiveness of the national industry.
He also invited all stakeholders to make P3DN a national movement involving the government, SOEs, BUMD, the business world, and all industry players in strengthening the structure of the Indonesian industry.
"I am confident that through stronger synergy, the use of domestic products will continue to increase, the competitiveness of the national industry will be more solid, and its contribution to Indonesia's economic growth will be greater," he said.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
