TEMPO.CO, Jakarta - The Government continues to encourage the use of domestic products (P3DN policy) amid increasing competition in the Southeast Asian region ahead of the ASEAN Economic Community (MEA) implementation; scheduled to begin at the end of 2015.

"I expect all government agencies to actively participate in implementing the P3DN policy in order to support industrial development and optimize the utilization of the domestic market," Industry Minister Saleh Husin said when opening the 2015 Indonesia Products Exhibition (PPI) in in Surabaya, Thursday, August 6.

The minister said that the P3DN policy is key to the success of improving Indonesian products' competitiveness, as well as enhancing the productivity of domestic industries.

The P3DN is a national program mandated through the Presidential Instruction No.2/2009 on the Use of Domestic Products in the Procurement of Government Goods/Services. Its implementation is reinforced through Law No.3/2014 on the Industry and Presidential Decree (Perpres) No.4/2015.

"The rules stipulate that government institutions—central and regional—must use domestic products when procuring goods/services using funds sourced from the state and local budgets," said the minister.

He also expects industry players to keep improving their production capacity and capability, so that they could produce goods and services with added values and high competitiveness that can meet the domestic and export markets' demand," he said.

In the 2015 Indonesia Products Exhibition (PPI) is being held from August 6 to 9, 2015. As many as 150 Indonesian companies participated, with 35 percent of the exhibitors originating from East Java.

Carrying the theme 'Proud to Use Indonesian Product', the exhibition displays a variety of locally-made leading products ranging from crafted goods, jewelry, to transport equipment and electronics and telematics products.

ANTARA | RR