The Ministry of Industry
encourages state-owned and private enterprises to enhance the use of domestic
products. During this time, the role of state-owned and private enterprises are
not yet maximal in improving this program. Minister of Industry, M.S. Hidayat,
in Jakarta on Monday (May 26), said that under the rules that prevail during
this time, the program for increase of use of domestic products (P3DN) is only
required for ministries/government agencies/ institutions. And, state-owned and
private enterprises cannot be forced to comply with these rules.
The minister admitted that
the application of P3DN program on state-owned enterprises is a bit difficult
because there are no rules that require it. However, all of it can begin
gradually with awareness. He hoped that in the future, state-owned enterprises
could further enhance P3DN program to guard against the influx of imports.
According to Hidayat, the program will be effective if all government agencies
run the program. As for the community, this program cannot be imposed because
it is only an appeal. Society will use domestic products if the domestic
industry could improve quality.
The minister also urged
state-owned enterprises, central government and local governments to cooperate
with each other in using local products as an appreciation in the strengthening
of domestic products. He said that a number of national industrial products
are considered able to compete with regional and global products. He criticized
the policies of the local governments and state-owned enterprises who prefer to
buy Chinese products compared to local products.
According to him, domestic
product is considered to have good quality, such as design, price, and
competitiveness in the international market. If people love domestic products,
the manufacturers will further improve the quality and design. He considered
that domestic product should be used by people so that foreign products did not
flood the domestic market.
He explained that
Presidential Instruction No. 2/2009 on the Use of Domestic Products in the Procurement
of Government's Goods/Services expressly mandates government agencies to
maximize the use of domestic products in the procurement of goods/ services
financed by state/regional budget (APBN/ APBD), especially for products whose
local content has reached a minimum 25% or 40% including Company Benefit Point
(BMP).
To support P3DN, the
government will impose strict sanctions on officials who violate the regulation
on the procurement of goods and services. Secretary General of the Ministry of
Industry, Ansari Bukhari, said that there are many regulations governing P3DN.
But, these regulations did not specify the rights and obligations of industry
players, consumer rights and responsibilities, and the role and authority of
the government and the sanctions.
Currently, the rules
governing P3DN have been set forth in several laws, among other, Law No. 22/
2001 concerning Oil and Gas which mandates the use of domestic goods and
services, Law No. 27/2003 concerning Geothermal, Law No. 30/2009 on
Electricity, which more or less stipulates about mandatory use of local
products.
And, many regulations
regarding local products have been issued, such as Presidential Decree No.
8012003 regarding procurement of government's goods and services. The President
has issued Presidential Decree No. 2/2009 on the use of domestic products in
the procurement of government's goods and services. Sanctions are required so
that the application of P3DN can run optimally, so as to improve the
competitiveness of products of domestic industries. Article 85 of Industry Act
states that for the empowerment of domestic industry, the government shall
increases the use of domestic products.
According to Ansari, the
mandatory use of domestic products is done according to the amount of domestic
components in each good/service as indicated by the level of domestic
components. Rules and procedures for the calculation of the level of domestic
component refer to the regulations stipulated by the Minister of Industry. (E)
Business New - May 28, 2014
No comments:
Post a Comment