Indonesia launches strategy to replace 35 percent of imported goods

A port in Jakarta, Indonesia (Photo: www.joc.com)

Jakarta (VNA) - Indonesian Minister of Industry Agus Gumiwang Kartasasmita on August 17 announced a strategy to replace 35 percent of imported products in 2022 so as to bolster self-reliance and promote the domestic industrial sector.

The country will cut down imports of products with high values such as machinery, chemicals, metals, electronics, foodstuff, electrical equipment, textiles, automobiles, and metal products.

Agus said that the strategy is to reduce imports in order to stimulate the growth of import-substitution industries and of the domestic manufacturing industry, and investment in import substitution production.

Another strategy is to optimise the increase in the use of domestic products through the determination of the Domestic Content Level (TKDN) of at least 40 percent.

The stipulation of the TKDN aims to encourage all domestically produced items to be included in domestic goods/services procurement projects, either through the state budget or budgets of state-owned enterprises.

In addition, education and campaigns are strengthened to foster public pride and love for domestic products. 

The public must be made aware that prioritising the use of domestic products is a commendable and patriotic act, the minister said, adding that the government has launched a national programme encouraging people to use local goods./.