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Two Days of Business Matching: Local Product Spending Exceeds IDR 95 Trillion

Two Days of Business Matching: Local Product Spending Exceeds IDR 95 Trillion

The Ministry of Industry initiated the Domestic Product Spending Business Matching in Nusa Dua, Bali, over three days, 22–24 March 2022, as follow-up to affirmative action on buying and using local products, part of the National Proud of Made in Indonesia Movement and a form of government support for national industry.

“This event is Kemenperin's idea to encourage the use of domestic products in ministries, agencies, state-owned enterprises and regional governments,” Minister of Industry Agus Gumiwang Kartasasmita said while reviewing the Domestic Product Spending Business Matching in Nusa Dua, Bali, on Wednesday (23/3).

The Minister hopes that through this Business Matching, ministries, agencies, state-owned enterprises and regional governments will commit to optimizing their budgets to buy domestic products, especially from Micro, Small and Medium Enterprises (MSMEs). “Because in fact, the products they need can already be produced domestically,” he said.

The Minister is optimistic that of central and regional government spending potential of IDR 1,071.4 trillion, IDR 400 trillion will be absorbed through domestic product spending throughout 2022. “Alhamdulillah, in just two days, up to 15.00 WITA, domestic product spending commitments from this Business Matching in Bali have exceeded IDR 95 trillion. We are confident the figure will keep rising,” he said.

Agus stressed that events like Business Matching will continue, given the enthusiasm of domestic industry and users. “This event in Bali is the kickoff of their commitments, and each has initialed them,” he added. The Business Matching will also be reported directly to President Joko Widodo.

Business Matching is also part of a three-stage program, beginning with the pre-Business Matching stage interconnecting data through government applications such as the Ministry of Home Affairs' SIPD, the Ministry of Finance's SAKTI and LKPP's SIRUP, which will connect with the Ministry of Industry's P3DN Information System (SIP3DN).

“So all ministries, agencies, state-owned enterprises and regional governments can submit their spending plans to us through SIP3DN. This is what we will pursue to accelerate the target, because from here we will match their spending plans with domestic industries,” Agus explained.

He said the government is serious about optimizing the Increased Use of Domestic Products (P3DN) program, believed to significantly boost national economic growth. Simulations by Statistics Indonesia (BPS) show purchasing IDR 400 trillion in domestic products can increase national economic growth by 1.67% to 1.71%.

“If economic growth was 3.69% in 2021, then by maximizing the use of domestic products, Indonesia's economy can be boosted to 5.36% to 5.4%,” he said.

Source: Press Release of the Ministry of Industry of the Republic of Indonesia

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