Contractors to be required to use local products

Contractors to be required to use local products

Adianto P. Simamora, The Jakarta Post, Jakarta

The Ministry of Industry and Trade will issue a decree requiring
all contractors on government projects to use locally made
products.

The move is part of the effort to help the country's
manufacturers, which have been hurt by a flood of cheaper
imported products in the domestic market.

Gunaryo, a director at the ministry, said on Friday an
interdepartmental team was now identifying which local products
and services would be included in the decree.

"Our priority now is to boost the use of locally made products
at home," he said.

Gunaryo said the decree would buy time for local manufacturers
to improve their quality, making them more competitive both at
home and in the international market.

"We want to help local producers so they can keep their
businesses alive," he said after opening a trade expo here.

The expo, organized by PT Panorama Convex, features products
and services related to the renovation of homes, offices and
buildings.

Many contractors on government projects use less expensive
imported products to help increase their profits.

"If the current situation remains unchanged, our country will
only be a market for overseas products," Gunaryo said.

Local producers have long complained of the high-cost economy
here, leaving them unable to compete against imported products.

The ministry also has issued a decree on the supervision of
both imported and locally made products sold in local markets.

Under this decree, producers and traders must meet government
regulations on labeling, marketing, advertising and after-sales
service.