JAKARTA - President Joko Widodo (Jokowi) ordered his staff to provide incentives for investors and industries that have succeeded in producing imported substitute goods.
"Give incentives to investors and industries that develop and produce imported substitution products," said President Jokowi when giving an online speech at the Coordination Meeting of Monitoring for the Evaluation of Presidential Instruction Number 2 of 2022, quoted by Antara, Tuesday, November 29, 2022.
Presidential Instruction Number 2/2022 is related to accelerating the increase in the use of domestic products and products of Micro, Small Enterprises (UMK) and cooperatives in the success of the Proudly Made in Indonesia National Movement (Gernas BBI) in the implementation of procurement of government goods/services.
The provision of incentives, said President Jokowi, is one of four steps to increase the use of domestic products.
Another step, the President continued, is to increase domestic products that have a Domestic Component Level (TKDN) certificate. Then, he said, there needs to be an acceleration of the digitization process to increase the absorption of domestic products and UMK products and cooperatives.
In this step, it also includes the use of central and local government credit cards in the procurement of goods and services.
Another step is to increase research to create industries that are able to substitute imported products.
With the increasing use of domestic products, said President Jokowi, employment will increase and become a stimulus for small industries.
"So that the national economy will continue to move and grow sustainably," said President Jokowi.
According to data from the Goods and Services Procurement Policy Institute (LKPP), the achievement of using domestic products has reached IDR 547 trillion or 44.9 percent. The 44.9 percent portion, said President Jokowi, is quite good because it has passed the target set at 40 percent.
"But spending on domestic products in 2023 must be even higher," said President Jokowi.
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