– Lecturer at the Faculty of Economics and Business at the University of Pancasila (FEB UP) who is also responsible for the S-1 management studies program, Muhammad Nuruddin Subhan said that the import barrier is a deduction for other variables in the calculation national income
National income itself, according to “economic philosophy”, is the total production of goods and services that can be produced by a country, either by the community or by businesses in that country. The productivity of a nation can be assessed from its national income. A country’s national income will tend to fall if the import variable is high enough, especially when imports are used for consumer goods, and not for capital and production goods, he said. declared, Sunday (14/3/2021). Also read: Revealing the reason Jokowi hates foreign products, Luhut: his carefree Pertamina seeks forgiveness
He reminded us not to let the incident of 2008, where the total value of imports from Indonesia was $ 129,197 million, happen again. This value came mainly from non-oil and gas imports (USD 98 644 million), or about 76.3% of total imports. An irony because Indonesia has an abundant natural wealth. Also at that time, according to the category of economic goods, the most important imports came from the imports of raw materials. It is therefore natural that President Joko Widodo is angry with the current import conditions. We strongly support the measures taken by President Joko Widodo, namely the revitalization of national products and the development of the potential for national products, both food products and household needs, he said. Also read: Revealed! 4 Facts About Why Jokowi Hates Foreign Products
According to him, the president’s steps must be continued with strategic policies that support companies in the food and drink sector that are already quite developed and nearly 30 companies in the food and drink sub-sector that have been listed. on the Indonesian Stock Exchange (IDX). For example, by offering tax incentives and an export facility, so that Indonesian food products become more competitive in terms of price and quality. Companies engaged in food products are expected to have a blessing in demand due to the fairly large population of Indonesia. As for household products, currently still dominated by multinationals, only a few local players play in this niche, for example Maspion and Polytron.
There is a need to develop more industries according to household needs and increase the number of businesses. For information, more than 50% of the raw material components used by Polytron come from within the country. Thus, Polytron can reduce production costs as domestic raw materials tend to be cheaper and are not affected by global economic conditions. Imagine the “multiplier effect” if more and more local businesses are operating in home industries. On its own, Polytron has 3 factories in Central Java, with a total employee of over 11,000 people, he explained.
The media can also support President Joko Widodo’s decision. Awards like Top Brand, ICSA and Superbrands can drive public opinion so that local products can be hosted in their own country. Online shopping (e-commerce) platforms can also help convey the president’s message, for example Tokopedia through a proud promo made in Indonesia. With this promotion, people get one of the benefits, which is free shipping. Besides spending more economically, this is an opportunity for all of us to support products made in Indonesia. “Finding domestic products is not difficult because we can get them on various online shopping platforms,” he said.
Finally, SNI (Indonesian National Standard) certification issued by government agencies can also boost the self-esteem of domestic products themselves and domestic consumers, as domestic products are safe to use and are already of good quality.
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