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JAKARTA - The Ministry of Industry noted that the Metal, Machinery, Transportation and Electronics Industry (ILMATE) grew by 12.16 percent (yoy), in the second quarter of 2023.

Secretary of the Directorate General of ILMATE at the Ministry of Industry Yan Sibarang Tandiele said the growth of the ILMATE sector consistently exceeded national economic growth since the first quarter of 2021.

The ILMATE sector itself is a manufacturing industry group that plays a very important role in the formation of Gross Domestic Product (GDP). In the second quarter of 2023, the ILMATE sector contributed 4.15 percent to the national GDP or reached 25.44 percent of the GDP of non-oil and gas industries.

The ILMATE sector which grew double digits during the second quarter of 2023, namely the Metal, Computer, Electronic Goods, Optical, and Electric Equipment Industry at 17.32 percent (yoy), Metal Industry at 11.49 percent (yoy), and the Transportation Equipment Industry at 9.66 percent (yoy).

"The increase in the performance of the Metal, Computer, Electronic Goods, Opticals and Electric Equipment Industry is due to an increase in demand for computers for the new school academic year as well as an increase in foreign demand for electronic tube products and other electronic components," Yan said in a written statement in Jakarta, on Monday, August 28.

Yan added that the impressive growth this quarter was also supported by an increase in exports above 100 percent in the Non-Aluminum Metal Non-Aluminum Goods Industry commodity ready to Install, as well as the Electronic Tube Industry and Electronic Connectors.

Meanwhile, the Metal Basic Industry is a sector that has been able to survive during the pandemic and recorded positive growth since the first quarter of 2020. The surge in the performance of this sector in the second quarter of 2023 was due to increased exports of steel and ferronickel commodities.

This positive growth in the Basic Metal Industry sector is in line with policy improvements at the Ministry of Industry regarding the national steel supply-demand smart mechanism with measured Technical Considerations in accordance with the provisions of the Minister of Industry Regulation Number 4 of 2021 which is an improvement of the Regulation of the Minister of Industry Number 1 of 2019 and Regulation of the Minister of Industry Number 32 of 2019 with better technical criteria.

"The increase in the Basic Metal Industry GDP is supported by the development of a number of smelter industries spread across various provinces in Indonesia, namely Central Sulawesi, Southeast Sulawesi, North Maluku, and Banten," he said.

Then, Yan continued, the control of the Transportation Equipment Industry was caused by an increase in demand for electric vehicles as a result of the implementation of Value Added Tax (VAT) incentives since April 2023 and the better supply of motor vehicle semiconductors.

"We hope that the performance of the growth of the ILMATE Sector can spur the expansion of investment and increase industrial technology through technology cooperation that can improve the export performance of ILMATE commodities," he concluded.


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