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THE COORDINATING Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan targets spending on domestic products (PDN) of 95% by displaying 5 million domestic products in e-catalogues in 2023.
To achieve this target, Luhut in a coordination meeting on the Preparation of the V PDN Business Meeting at the Office of the Coordinating Ministry for Maritime Affairs and Investment (Kemenko Marves), Jakarta, Tuesday (01/02), plans to hold four business meetings, following the success of a similar event in 2022.
“In 2023 we must hold four business meetings to achieve the PDN spending target of at least 95% of the goods and services budget and display 5 million domestic products in e-catalogues, increase domestic demand for PDN, and increase the number of Micro Small and Medium Enterprises (MSMEs)/IKM onboarding to digital ecosystem,” he said in his official statement in Jakarta, Tuesday (01/02).
Luhut explained that holding business meetings in 2022 had contributed to the achievement of spending on domestic products. As of January 2, 2022, the realization of PDN spending by ministries/agencies, the central government, regional governments and State-Owned Enterprises (BUMN) reached IDR698.68 trillion or 69.78% of the commitment of IDR1,001.26 trillion.
A total of 10 ministries/agencies with the largest budgets have realized 64.55% of the PDN spending commitment. In addition to encouraging the absorption of domestic products, Luhut explained that the Proud Made in Indonesia (BBI) affirmation is also expected to maintain demand for domestically manufactured products.
The government assesses that demand for domestic products is still strong following the achievement of the Indonesian Manufacturing Purchasing Managers’ Index (PMI) which also increased to 50.9 in December 2022, higher than the ten-year average and is projected to continue to rise in 2023 and 2024.
Furthermore, Luhut revealed the challenges of increasing spending on domestic products (PDN) realization, namely the limited availability of PDN for import substitution, PDN production capacity, and the variants and number of products in e-catalogues.
Therefore, he stated that there are five aspects that must be improved in implementing the PDN business meeting of the Buy Indonesian Goods (BBI) National Movement (Gernas) Affirmation Action in order to realize the Instruction of the President of the Republic of Indonesia (Inpres) Number 2 of 2022, namely sharpening the identification of needs for government spending products, increasing the number of industries or domestic MSEs. as import substitutes, increasing the number of domestic showcase participants, purchasing directly through e-catalogues and involving the general public.
“The 2023 business meeting is targeted to achieve a spending commitment of at least IDR250 trillion per stage, by presenting supporting industries/UMK/artisans according to government spending needs,” he explained.
Luhut then asked the Indonesian National Army (TNI) through the Ministry of Defense and the Ministry of Industry to identify procurement of imported government goods/services and increase the number of business meeting participants from industry/UMK/artisan circles to conduct showcases of domestic products, especially import substitutions.
In addition, the Ministry of Industry and the Ministry of Defense were asked to coordinate with the Government Goods/Services Procurement Policy Agency (LKPP) to display PDN e-catalogues that were exhibited and purchased directly (live shopping) during business meetings.
“Furthermore, LKPP should socialize the Draft Law on Procurement of Government Goods and Services at the implementation of each business meeting,” he concluded. [antaranews/photo special]
