Indonesian Government's Role in Increasing Domestic Product Consumption: An Analysis of Act Number 3 of 2014 on Industry

To empower the domestic industry, the Indonesian government has introduced policies aimed at increasing the utilization of domestic products. The government's policy, as encapsulated in the Program for the Enhancement of Domestic Product Utilization (EDPU), seeks to encourage the populace to favor domestic products over imports. The use of Domestic Products (DP) is a strategy to stimulate growth and empower domestic industries in Indonesia, fostering value addition, employment generation, improving the competitiveness of domestic products, supporting innovation and technology within domestic products, and increasing the use of these products. The EDPU is regulated by Articles 85 through 90 of Act Number 3 of 2014 Concerning Industry. The government provides incentives in the form of preferential pricing and administrative ease in the procurement of goods/services, along with certification of domestic component levels. Additionally, the government has established regulations regarding administrative sanctions for entities that do not utilize domestic products. The purpose of this paper is to explore the government's policies related to EDPU, intending to foster national economic development by creating a robust economic structure through the advancement of domestic industries as the catalyst for the national economy. This research follows a normative approach, grounded in literature research, and utilizes secondary data sources.