Buying Domestic Products

Increasing the use of domestic products can drive increased growth and create quality jobs.

STEFANUS OSA TRIYATNA

Phase II Business Matching Exhibition at the Smesco Building, Jakarta, Monday (11/4/2022). Various domestic products and medical devices with higher local content were exhibited.

President Joko Widodo has determined that the use of domestic goods and services, especially the products of small and medium enterprises (SMEs), must be a spending priority for central and regional governments. The budget allocation is extraordinary. Out of more than Rp 1.2 quadrillion in government spending, 40 percent must be used to buy goods produced by SMEs, according to Presidential Regulation No. 12/2021. The President then formed the Government Goods & Services Procurement Policy Institute (LKPP) to ensure that this goal is achieved.

Provincial and regency/municipal administrations are to spearhead the implementation of this regulation by determining the types of goods and services to be purchased. It is interesting that almost all 14 mayors who are members of the Kompas Collaboration Forum and the Association of Indonesian Municipalities (Apeksi) who attended the meeting at Bogor Botanical Gardens on Saturday (3/9/2022) admitted that they did not really understand the mechanism for accelerating spending to buy domestic SME products.