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Mar 15, 2023
Jokowi to Reward Buying Local as $50 Billion Budget Spurs Growth
Bloomberg News
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(Bloomberg) -- Indonesia will reward its officials for buying local after their shopping spree added to economic growth last year, according to the president.
President Joko Widodo told his ministers, officials and regional chiefs that he was still finding imports of goods that can be produced onshore, including military uniforms, shoes, and even army rations.
“We want to buy fighter planes? Go ahead, because we can’t make that yet. But if it’s weapons, bullets, we can already do it, so why do we have to buy from outside?” he said in a speech on Wednesday. Those who insist on imports could even be punished, especially those repackaging overseas goods to hide their origin.
“You think I don’t know? I’ve ordered this to be checked properly,” he added.
Jokowi has focused his final term on improving Indonesia’s terms of trade, from pushing for higher-value exports to reducing the flow of imports to support local businesses. He also wants state spending to be used to buy products made in the country. Last year’s 762.7 trillion rupiah ($50 billion) of government purchases of local goods helped economic growth reach a nearly decade high of 5.31%.
Indonesia charted its 34th straight month in trade surplus as exports exceeded imports by $5.48 billion in February.
©2023 Bloomberg L.P.