RRI.CO.ID, Jakarta – The Indonesia's Ministry of Industry has emphasized the importance of the Program to Increase the Use of Domestic Products (P3DN) as a strategic instrument to spur national economic growth and strengthen the competitiveness of the manufacturing industry in the global market. Optimizing spending by the government and state-owned enterprises (SOEs) is seen as a way to protect Indonesia’s highly promising domestic market from the pressure of expanding imported products.

This effort to strengthen domestic demand focuses on the procurement of goods and services from the domestic processing sector, which currently accounts for approximately 78.39 percent of total national manufacturing output. This strategy is expected to increase production capacity utilization, expand local supply chains, and create more new jobs amid the dynamics of global economic uncertainty.

At the 2026 Inter-Ministerial P3DN Summit in Jakarta on Wednesday, July 22, 2026, the government emphasized that all government spending must serve as the primary driver for the national industrial ecosystem from upstream to downstream. This policy is considered crucial for strengthening the economic structure and the self-reliance of the domestic industry.

“P3DN is not merely a policy for the procurement of goods and services, but a major strategy to strengthen the national industrial structure. Every purchase of domestic products will generate a multiplier effect that drives the industrial sector, increases demand for local raw materials, expands employment opportunities, and boosts national economic growth,” Industry Minister Agus Gumiwang Kartasasmita said.

The government also commended the efforts of state-owned enterprises (SOEs) such as the Pertamina Group, which successfully allocated spending on domestic products totaling Rp531.5 trillion in 2025, including by engaging micro, small, and medium-sized enterprises (MSMEs). Support from these large companies is considered crucial in ensuring industrial sustainability and driving equitable economic recovery across various regions.

In addition to maximizing domestic spending, the government is implementing industrial protection measures through the registration of Indonesian National Standards (SNI), import approvals based on technical considerations, and anti-dumping duties. These protective measures are designed to maintain healthy business competition and shield local producers from the onslaught of cheap imported goods.

“By strengthening these instruments, we aim to create an increasingly healthy business climate so that the utilization of the national industry increases and the competitiveness of Indonesian products grows stronger,” Agus said.