State Budget Must Be Spent on Local Products, Jokowi Suggests

TEMPO.CO, Jakarta - President Joko Widodo, or Jokowi, in a press release on Tuesday, instructed state ministries to prioritize State Budget (APBN) and Regional Budget (APBD) spending on locally-made products over imported goods as it would give back to the taxpayers. 

The current State Budget is Rp2,417 trillion while Regional Budget amounts to Rp1,197 trillion. The President also lamented the benefits it would bring to other countries instead of to Indonesia, Bisnis.com reported. 

"This is the State Budget and Regional Budget, you know. But [you] buy imported products. It's other countries that will gain the added value, [and the] employment opportunities," said Jokowi in the written statement dated June 14. 

Jokowi believes both budgets should produce added value, and increase domestic economy and spending efficiencies. He, therefore, ordered the government internal control apparatus (APIP) to oversee and guard the process of domestic spending.

During the 2022 National Coordination Meeting for Government Internal Control at the State Palace today, Jokowi also compared a number of tools, such as a low-speed sewing machine. Imported low-speed sewing machines, for example, are priced at Rp13 million per unit, while local ones are priced lower at Rp12.8 million.

Meanwhile, imported mechanical equipment costs Rp22.9 million, while domestically made products cost Rp28 million. "Don't say it's cheaper. Because of the added value for the country, it opens up domestic job opportunities. Buy PDN (local products) so that there will be more jobs because we buy domestic products," Jokowi emphasized.

BISNIS

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