VP calls for more local content in government projects
The Jakarta Post
Vice President Jusuf Kalla has called on officials in the government and state-owned enterprises (SOEs) to increase the use of local content in their projects to help reduce imports of raw materials.
He urged ministers to review the usage of local content in projects financed by the state budget and SOEs. “The list of projects are being prepared,” Kalla said in Jakarta on Tuesday as reported by kontan.co.id.
Kalla stressed the need to review projects handled by the Public Works and Housing Ministry, the Transportation Ministry, state-owned electricity company PLN and state-owned oil and gas holding company Pertamina.
Coordinating Economic Minister Darmin Nasution said the relevant ministries would review projects. “The lists are there. We just need to decide which projects can be postponed,” Darmin added.
Public Works and Housing Minister Basuki Hadimuljono said the amount of local content in his ministry had reached 86.6 percent, with 96.6 percent for water resource projects, 94.4 percent for sanitation and residential projects, 78.4 percent for road projects and 76.6 percent for housing projects.
He explained that domestic producers often failed to fully supply the ministry with materials. In one case, he said, the ministry needed 14.41 million tons of steel, but local producers could only supply 7 million tons, and it needed 8.26 units of heavy equipment, but only 4.48 million units were supplied.
Meanwhile, local content in the transportation sector reached 60 percent, Transportation Minister Budi Karya Sumadi said. (bbn)
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