Manufacturing Industry Contributes 27.4 Percent To Indonesian Tax Revenue In Semester I 2023

Spokesperson for the Ministry of Industry (Kemenperin) Febri Hendri Antoni Arif. (Photo: Doc. Ministry of Industry)

Spokesperson for the Ministry of Industry (Kemenperin) Febri Hendri Antoni Arif said the non-oil and gas manufacturing industry contributed 27.4 percent of total tax revenue in the first semester of 2023 which reached Rp970.20 trillion.

Seperti yang disampaikan Menteri Keuangan Sri Mulyani Indrawati, penerimaan pajak dari sektor industri pengolahan sedang mengalami tren menurun. Namun demikian, indikator-indikator masih menunjukkan bahwa kinerja sektor industri tetap produktif. Inilah yang terus kita jaga, kata Febri dalam keterangan di Jakarta, dikutip Rabu 26 Juli.

The indicator in question is the Purchasing Manager of the Manufacturing's Index' (PMI) and the Industrial Trust Index (IKI). He mentioned that among the more than 40 countries in the world surveyed by S&P Global, about 61.9 percent of them experienced a contraction shown by PMI below 50.

"Meanwhile, Indonesia for 22 consecutive months or almost two years continues to be in an expansive phase with a manufacturing PMI value above 50," he said.

Febri added that the condition of the world manufacturing PMI in January-August 2022 was in an expansion position, but contractive to an average of 49 in September 2022-June 2023.

"However, the Indonesian and ASEAN manufacturing PMIs are still better than the world's manufacturing PMIs, with an average of more than 50," he explained.

Based on the S&P Global report, Indonesia's manufacturing industry sector expansion is quite high, from 50.3 in May 2023 to 52.5 in June, driven by an increase in new demand. This has resulted in an increase in production, which also has an impact on increasing the number of workers.

This indicator is also in line with the Industrial Trust Index (IKI) released by the Ministry of Industry. In June 2023, IKI reached 53.93 or an increase of 3.03 points compared to May 2023. This value was driven by the increase in IKI in 21 industrial sub-sectors.

"The majority of industry players stated that business conditions in general have increased and have a positive view of business conditions in the next six months," explained Febri.

The performance of the non-oil and gas processing sector can also be seen from utilization which was around 70 percent in January-June 2023. This shows a relatively stable, higher industrial production rate compared to 2021-2022 and moving back to pre-pandemic conditions at 76 percent.

As one of the 10 countries in the world with the highest contribution from the manufacturing sector to global output (based on data from the United Union Statistics Economics), Indonesia continues to pursue increased productivity and competitiveness in the industrial sector. The Ministry of Industry implements industrialization policies based on industrial downstreaming so that increased added value of commodities can be optimized domestically.

"With a multiplied export value compared to only exporting raw materials, the industrial sector is able to contribute more to the country's foreign exchange," explained Febri.

On the other hand, investment in the manufacturing industry sector in January-June 2023 reached IDR 270.3 trillion, up about 17 percent from the same period in the previous year. The increase in investment has had a positive impact on downstreaming in the industrial sector, with the increasing number of industrial projects in various locations in the country.

The investment condition of the non-oil and gas processing industry sector has experienced a significant increase in recent years. This shows investors are optimistic and believe in the condition of the industrial sector in Indonesia.

The increase in investment has also created more and more new jobs that have a positive impact on the welfare of the community. In August 2022, the workforce in the industrial sector was recorded at 19.11 million people or covering 14.13 percent of the total workforce. This number exceeded the labor figure of the industrial sector before the COVID-19 pandemic (18.87 million people in 2019).

"The industrial sector also provides a multiplier effect on state revenues, with increased individual taxes from industrial workers," said Febri.