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INDUSTRY Minister Agus Gumiwang Kartasasmita targets IDR250 trillion (US$16 billion) contract value for domestic product purchases in 2024 first quarter by central and regional governments at the Business Matching in Sanur, Bali, on March 4-7.
“In 2024, the potential for expenditure on goods and capital from the state budget and regional budget reached IDR1,223 trillion, excluding state-owned enterprises (SOEs) and regional enterprises spending,” he stated on the sidelines of the opening of the 2024 Business Matching Exhibition on Tuesday.
At the opening of the event, which brought together budget owners and producers and business actors, until Tuesday at 12:00 local time, a commitment to spend on domestic products reached IDR90 trillion.
This commitment value is currently carried out by 2,167 work units, with the total number of commitments received reaching 87,538 data, based on the temporary dashboard of the domestic product shopping exhibition.
Moreover, government institutions, including the Ministry of Defense, Ministry of Public Works and Public Housing (PUPR), Ministry of Health, Ministry of Law and Human Rights, and Ministry of Education, Culture, Research, and Technology, currently spend the most on domestic products at exhibitions.
On that occasion, the Ministry of Defense also signed contracts for purchasing domestic products with state-owned companies, including the state-run railway signaling industry, PT LEN Industry, and the state-run defense equipment manufacturer, PT Pindad. Total realization of the defense sector spending at the exhibition reached IDR9.38 trillion.
Kartasasmita stated that based on data from the Government Goods/Services Procurement Policy Institute (LKPP), the commitment to use domestic products in 2023 reached Rp1,208 trillion for the procurement of government goods and services.
However, the realization is still below the commitment of IDR659.61 trillion. During the first similar event in 2022 conducted in Bali, the realization of contract value for purchasing domestic products reached IDR100 trillion.
“This realization then increased at the second exhibition at Istora Senayan Jakarta in 2023 to IDR180 trillion. By the first quarter of 2024, the target is increasing to IDR250 trillion,” he remarked.
He stated that the exhibition was attended by 3,162 people, including representatives of regional governments, central government comprising ministries and institutions, and representatives of SOEs as well as associations and industrial companies. Domestic products on display were presented at 182 booths, an increase as compared to the previous year’s 109 booths.
The minister stated that domestic products in the exhibition have received domestic component level (TKDN) certificates with a variety of products, including small industrial products, crafts, food and beverages, and large-scale products, such as medical equipment and transportation equipment. [antaranews]
