The Ministry of Industry (Kemenperin) has affirmed its commitment to strengthen the use of domestic products (P3DN) by optimizing government procurement, especially by flooding the National Public Procurement Agency (LKPP) and the e-catalog with domestic products. This step is an important strategy for protecting national industry while strengthening Indonesia's manufacturing structure.
In line with this policy, Minister of Industry Agus Gumiwang Kartasasmita once again promoted the National Proud of Made in Indonesia Movement and the Buy Domestic Products Movement.
“This is a movement to buy domestic products, or even a movement to make people ashamed of buying imported products when products with the same specifications are already made at home. If we can already produce it ourselves, buying imported products should be something embarrassing. This is important to protect domestic industry and also to protect our fellow citizens who work in those industries,” Minister of Industry Agus Gumiwang Kartasasmita said in his remarks at the opening of the Domestic Product Business Matching 2025 in Jakarta on Monday (15/12).
In his view, government procurement must be the locomotive of national industrial growth. “One way is to ensure the e-catalog is flooded with domestic products that have a TKDN value,” he added.
The Minister of Industry stressed that policies favoring domestic products are a global practice. Almost every country seeks to protect its domestic industry.
“Mexico is one example of a success story. The country has consistently applied local content policies to strengthen its manufacturing industry. Indonesia must also dare to do the same,” he stressed.
In the national context, the policies on Increased Use of Domestic Products (P3DN) and the Domestic Component Level (TKDN) are strategic instruments for facing serious challenges, including import mafia practices.
“The import mafia is a tremendous challenge for us. That is why the TKDN policy is a strategic effort by the government to protect domestic industry,” the Minister of Industry said.
The Minister of Industry added that the preference for P3DN aims not only to increase manufacturing added value, but also to strengthen supply chain self-reliance and the competitiveness of national industry sustainably. Leading by example is also part of this policy. At the event, the Minister wore domestically produced batik with a TKDN value as a tangible symbol of support for national products.
To accelerate industry participation, Kemenperin has completed the reform of TKDN policy through the latest Regulation of the Minister of Industry. The reform includes simplifying TKDN calculation, speeding up certification, making things easier for small industries and providing incentives for companies that invest at home.
“Through the new Ministerial Regulation, we want to convince producers to be brave and active in listing TKDN values on their products. That way, we can flood LKPP and the e-catalog with domestic products,” he explained.
The Domestic Product Business Matching 2025, held on 15–16 December 2025, focused on strengthening the commitment of central and regional governments and state-owned enterprises (BUMN) to prioritize domestic products, expanding market access for small and medium industries, and increasing the use of domestic products for strategic needs, including Hajj and Umrah.
As part of the series of events, Kemenperin also presented the 2025 Domestic Product Use Awards to users and producers of domestic products in recognition of their commitment to supporting national industry. The awards were given to a number of ministries/agencies, regional governments, state-owned enterprises and industry players of various business scales.
Source: Press Release of the Ministry of Industry of the Republic of Indonesia