The policy is decided at a limited cabinet meeting headed by President Joko Widodo, Husin said in a statement here on Wednesday.
The minister pointed to a 270-kilometers long gas transmission pipe project extending between Gresik in East Java and Semarang, Central Java.
The contract to build the project, which is owned state oil company PT Pertamina, was won by a consortium of PT Wijaya Kartya, a construction company, which is also owned by the state, but it uses steel from South Korea," the minister said .
Other members of the consortium of construction companies are Remaja Bangun Kencana and Kelsri.
The minister asked the consortium to give priority to local products of steel as steel pipes are already produced domestically in Batam, Cilegon, and Bekasi.
The meeting also discussed projects to build power plants with a total capacity of 35,000 megawatts in five years.
The projects will use locally produced components including turbines, transformers, and transmission cables, the minister said.
"We also finalized plan at the meeting to produce heavy equipment for infrastructure project using locally produced steel materials," he said.
Meanwhile, the public works ministry will need 1,000 units of excavators and state owned defense industry PT Pindad also produces heavy equipment, he said.
"We will coordinate with the public works ministry and PT Pindad, which is preparing a prototype to be launched in June or July," he said.
He said President Joko Widodo wants to push for acceleration of capacity expansion toward self reliability in economy in line with his target of Trisakti and Nawa Cita in social welfare .
Development of the industries and the use of local contents will save foreign exchange and open more jobs. (WDY)
: I Gusti Bagus Widyantara
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