Indonesia to Push 95% of Govt Expenditure for Local Products

President Joko "Jokowi" Widodo targets 95 percent of the budget ceiling for procuring goods and services in every ministry, agency, central and regional government, and State-Owned Enterprise (BUMN) to be used to purchase domestic products. Jokowi said that consuming local products would automatically hoist Indonesia's economic growth.

"The target is that 95 percent of the budget ceiling for goods and services must be purchased for domestic products. All our domestic industries will live and develop if we can do this. We don't have to look far for investors if this can work," Jokowi said when inaugurating the opening of the 2023 Domestic Product Shopping Business Matching at Istora Senayan, Jakarta, on Wednesday.

Jokowi claimed that Indonesia had taken earlier measures than other nations to promote the use of domestic goods. Jokowi stated that the United States would not begin implementing this plan until 2023 when Indonesia started to increase its use of local products in 2022.

Jokowi appreciates the work of all parties who have significantly increased the use of domestic products in the past year. Jokowi said that a year earlier, only 50,000 domestic products were included in the e-catalog. The number of local products included in the e-catalog has increased to 3.4 million.