Indonesian Government Continues to Optimize Domestic Product Usage

Monday, 18-October-2021 21:00

Airlangga Hartarto, Indonesian Coordinating Minister of the Economy
Image : ANTARA/HO-Kemenko Perekonomian
Airlangga Hartarto, Indonesian Coordinating Minister of the Economy

JAKARTA, NETRALNEWS.COM - Indonesian Coordinating Minister for the Economy Airlangga Hartarto says the government continues to support the program to Increase the Use of Domestic Products (P3DN) as an effort to encourage people to use domestic products more than imported products.

"For example, the government is currently encouraging the 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," Airlangga said at the coordination meeting of the P3DN National Team working group that was held online, on Monday (10/18/2021).

Airlangga said that 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 Government Regulation (PP) 29 Year 2018 on Industrial Empowerment, which regulates the Domestic Component Usage Level (TKDN) policy. The industrial sector is the driving force for the economy that makes Indonesia a producing country, not an importer, so that Indonesia can open up business and work opportunities, and has the power to accelerate equitable development and national resilience.

The Coordinating Minister continued that with TKDN, domestic products that have a total value of TKDN 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 TKDN provisions," said Airlangga.

Furthermore, he said that state-owned enterprises (SOEs), as one of the pillars of the national economy, have also shown a great commitment in supporting the program to increase the use of domestic products, as shown by PT Pertamina (Persero) and PT PLN (Persero).

Pertamina managed to record a TKDN achievement of 55.6 percent in 2020, and is targeting a TKDN achievement of 59.45 percent in 2021. Meanwhile, PT PLN (Persero) which has managed to achieve a TKDN value of 40.1 percent in 2020, is targeting a TKDN achievement of 45 percent in 2021, and a further 60 percent by 2025.

In addition, the commitment to support the P3DN program was also shown by 32 other SOEs that were able to obtain an average TKDN realization of above 50 percent with a total value of IDR 115.2 trillion in 2020.

"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 Coordinating Minister Airlangga, as reported by Antara.

Reporter : turkhan
Editor : turkhan