Mustaqim Adamrah, Jakarta – The government is intensifying efforts to bolster the domestic market, already boosted by the introduction of import restrictions.
As part of such efforts, Industry Minister Fahmi Idris said Sunday the government was finalizing a regulation that would mandate the use of local products by, for instance, civil servants.
He said the decree would serve as an auxiliary regulation to a presidential instruction on the guidance of local product consumption, still being drafted and aimed at helping local industries cope with the fallout from the global economic downturn.
"There has to be a joint decree to oblige, for instance, civil servants to wear locally produced shoes," he said on the sidelines of a four-day footwear, leather and leather products exhibition, held at the Jakarta Convention Center over the weekend.
The planned presidential instruction will urge government and administrative institutions to use local products and services in their procurements using state budgets.
Fahmi said the decree, expected to be issued by the end of this month, would involve himself, State Minister for Administrative Reforms Taufik Effendi, National Education Minister Bambang Soedibyo and Home Minister Mardiyanto.
"I will talk with Pak Taufik next week to formulate this decree; how to require civil servants to wear locally made shoes," he said. "Besides the administrative reforms minister, I will talk with the education minister and the home minister too."
Fahmi added the decree would not only regulate locally produced shoes, but also other products.
The government has made several attempts in an effort to help domestic industries survive the crisis, especially those losing their overseas markets because of shrinking global demand.
As a result, local industries are now having to rely more on the domestic market, which is currently 70 percent controlled by local products.
Late last year, the Trade Ministry issued a ministry regulation to control imports in five key categories, namely food and beverages, textiles and garments, footwear, electronics and children's toys.
Under that ministry regulation, imports of goods in these categories may only enter the Indonesian market through Belawan Port in Medan, North Sumatra, Tanjung Priok Port in Jakarta, Tanjung Emas Port in Semarang, Central Java, Tanjung Perak Port in Surabaya, East Java, and Soekarno-Hatta Port in Makassar, South Sulawesi, as well as all international airports, while imports of food and beverages may also enter through Dumai Port in Riau.
Imports through ports other than those highlighted in the regulation will be declared illegal.
Also, imports of goods in these categories will have to undergo a pre-shipment inspection at origin ports before being delivered to the country.
Trade Minister Mari Elka Pangestu, who also attended the weekend exhibition, said the regulation had successfully curbed illegal imports.
"Local garment, electronics and shoe manufacturers tell me they have begun to see an increase in domestic demand for their products," she said. "For instance, demand for local electronics has increased by 20 percent since the issuance of the regulation."
Echoing Mari, Indonesian Textile Association (API) chairman Benny Soetrisno also said at the exhibition that demand for locally produced textiles had jumped by 10 percent.