Luhut: Domestic ICT product spending will reach IDR 17 trillion in 2024

Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan targets the use of domestic Information and Communication Technology (ICT) products in the education sector through government procurement to reach IDR 17 trillion in 2024.

Luhut said government spending on domestic products (PDN) in the field of education, especially Information and Communication Technology (ICT) products is still very low compared to imported products.

"So over the next 4 years, we will spend that much. We want as much as possible, gradually, we will make it domestically," he said at an online press conference about increasing the use of domestic products in the education sector, Thursday.  .

For the 2021 budget, the total needs of the Ministry of Education and Culture, Research and Technology and local governments (Pemda) for the procurement of laptops are 431,730 units, which is worth Rp. 3.7 trillion.  This amount consists of 189,165 units (approximately Rp1.3 trillion) through the 2021 APBN and 242,565 units (approximately Rp2.4 trillion) through the physical education DAK.

"Currently, a contract signing for the use of PDN worth Rp1.1 trillion has been signed," he said.

Luhut said, currently there are six domestic laptop manufacturers with a Domestic Component Level (TKDN) value of more than 25 percent and have been able to meet the procurement needs of the Ministry of Education and Culture, Research and Technology and the Regional Government in 2021.

It is noted that the readiness of domestic laptop production is 351,000 units in September 2021 and a total of 718,100 units in November 2021.

Furthermore, the government has also mapped the need for ICT products for the 2021-2024 fiscal year.  For example, the need for laptops until 2024 reaches 1.3 million units, access points reaches 99 thousand units, and LCD projectors reach 99 thousand units.

"We hope that more and more will be produced domestically in line with the funds that the Ministry of Education and Culture has and also later we will make more rules so that as many as possible are used. And we will limit imports from outside," he said.

Luhut also reminded the government to be firm in eradicating import practices carried out by a number of individuals.  According to him, imports should not be necessary when the domestic capacity is sufficient to be able to produce similar products.

"We really encourage this (purchase of domestic products). So we can't import-import even though we can produce it ourselves. So it must be eradicated by people who are still playing here," he said.

 To be able to meet the target for spending on domestic ICT products, Luhut said the local government is also obliged to allocate physical education DAK to buy domestic products as the Ministry of Education and Culture and Research and Technology does to spend on PDN laptops.

In addition, the government will also try to prepare domestic research capabilities to increase the TKDN content so that it can produce Red and White laptops from design to development.