Workers screen printing cloth for t-shirt production at Fakelab, Yogyakarta, Tuesday (28/3/2023). Realization of spending on domestic products by the government has only reached IDR 196 trillion or 16.4 percent.
Armfalcon.com, JAKARTA — Realization of spending on domestic products by the government has only reached IDR 196 trillion or 16.4 percent of the 2024 target of IDR 1,171 trillion as of May 8 2023. Although it is still minimal, the government is optimistic that this target will be achieved.
Deputy for Tourism and Creative Economy, Coordinating Ministry for Maritime Affairs and Investment, Odo Manuhutu, said the realization of this expenditure was still quite low. However, this was due to the early part of the fiscal year.
“If we look at it, at the beginning of the year it is usually sloping, then in August, September it will start to increase,” Odo said at the Merdeka Barat Forum (FMB), Monday (8/5/2023).
Odo said, one of the significant spending on domestic products was related to medical devices. In addition, spending on defense equipment for national resilience is also quite large.
Expert Staff of the Ministry of Industry for Business Climate and Investment, Andi Rizaldi, said that spending on domestic products does not only have an impact on large industries engaged in the upstream sector. However, it directly has a positive impact on small and medium industries or IKM.
He explained that many downstream industries in Indonesia are run by IKM. Indirectly, those involved in the downstream production of local products will also receive an increase in income. On the other hand, IKM that operates downstream also plays an important role in absorbing labor.
Since the Covid-19 pandemic broke out in Indonesia starting in 2020, Andi admits that Indonesia has experienced a decline in its workforce of nearly one million people. However, the existence of domestic products whose uptake continues to be increased will directly boost employment again.
“So far, we have recorded nearly 20 million people working in the manufacturing industry sector,” he said.