Put state spending to work for industry
Jakarta, Oct. 8 -- Government spending on goods and capital is a direct stimulus for absorbing domestically manufactured products. Yet a high share of local procurement does not automatically translate into stronger manufacturing competitiveness.
The long-term impact of such spending depends largely on whether manufacturers can use procurement revenue to deepen supply chains, reduce production costs, and build capabilities in upstream industries.
Data from the Ministry of Finance shows that central government spending reached Rp1,791.5 trillion as of August 31, 2026, or 56.9 percent of the Rp3,149.7 trillion state budget allocation.
Goods spending accounted for Rp389 trillion, while capital spending reached Rp159.8 trillion.
These fig...
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