Jokowi Urges Government Agencies to Purchase Local Products to Boost Economy

Jokowi Urges Government Agencies to Purchase Local Products to Boost Economy (photo: Raul Gonzalez Escobar - Unsplash)

The President of Indonesia, Joko Widodo, has called on the country’s government institutions to prioritize purchasing local products listed in the electronic catalog (e-catalog) of the Policy Procurement of Goods or Services Agency (LKPP).

Speaking at the opening of the National Coordination Meeting for the Acceleration of the National Economic Recovery (BM P3DN), President Jokowi emphasized the importance of not only including Indonesian products in the e-catalog but also buying them.

President Jokowi expressed his satisfaction with the significant increase in the number of local products available on the LKPP e-catalog, which has grown from 50,000 to 3.4 million products in just one year.

However, he emphasized that it is not enough to simply list these products, they must also be purchased by government agencies at both the national and regional levels.

He specifically addressed government entities such as ministries, institutions, state-owned and regional-owned enterprises, as well as provincial, city, and district governments, urging them to buy Indonesian-made products listed on the e-catalog: “I’m only asking that if locally-made products have been listed on the e-catalog, don’t just let them be listed, but also purchase them,” he said.

The President also supported the proposal by the Minister of Maritime Affairs and Investment, Luhut B Pandjaitan, and the Minister of Industry, Agus Gumiwang Kartasasmita, to prioritize 95% of the ministry’s budget for purchasing goods and services for locally-made products.

According to Jokowi, if this policy is implemented, it will have a positive impact on the country’s economy: “We don’t have to go far to find investors.

If this policy is implemented, it will be good for investors as a bonus, but buying local products will automatically boost our economic growth,” he said.

As previously reported, the national economic recovery after the Covid-19 pandemic is actually going very well. However, President Jokowi continues to ask the public to shop. This is an effort to boost the national economy.

He asked local governments (pemda) should facilitate this. Jokowi gave an example of tourism. Now is the right time in the morning, the local government is aggressively promoting its tourist sites, inviting people to come and shop.

“Repair and promote what is called tourism in villages in the regions, promote it so that people come to that place to spend their money, also encourage MSMEs to sell there so that people spend as much as possible,” said Jokowi while giving a briefing to the Association of Provincial Governments All Indonesia (APPSI) in Balikpapan, Thursday (23/2/2023)

“The formula is that we encourage people to spend, not save money at this time because we need economic growth to be maintained and if possible it will actually increase,” he said.