Presidential Instruction of 2022 Concerning Acceleration of Increased Use of Domestic Products

The success of the Proud Made in Indonesia National Movement (BBI) in the Implementation of Government Procurement of Goods/Services. Based on this regulation, said the Minister of Religion, government agencies, both central and regional, BUMN, and other legal entities are required to use domestic products within certain limits for expenditures implemented if these expenditures are financed with financing sourced from the APBN/APBD, financing sourced from loans/grants, financing obtained from the exploitation of resources controlled by the state, and carried out through a pattern of cooperation between the government and business entities.

Violation of this provision may be subject to sanctions. For verification bodies, sanctions can range from written warnings to revocation of New Zealand Phone Number Data appointments as TKDN independent verification bodies. For procurement officials, sanctions are given in the form of written warnings, administrative fines, to dismissal from the position of procurement of goods/services. Meanwhile, producers of goods/service providers may be subject to sanctions in the form of revocation of TKDN certificates, blacklisting, and administrative fines. “The P3DN program is the government’s effort to encourage people to use domestic products more than imported products,” explained the Minister of Religion.

The use of PDN in the Procurement of Government Goods/Services is also an effort to drive growth and empowerment of existing industries in Indonesia, increase added value, absorb labor, increase the competitiveness of PDN, support and enhance PDN innovation and technology, and increase the use of PDN, through awarding domestic users and producers (pricing preference). The Minister of Religion added that the stake leaders must also know the benefits of implementing TKDN, including the absorption of local workers and the creation of new jobs.