Indonesia Explores Opportunities for Collaboration with France in the Industrial Sector

JAKARTA - The Ministry of Industry (Kemenperin) is exploring opportunities for collaboration with a number of French companies in business forums in a series of events entitled Fête de l'Archipel held by the Embassy of the Republic of Indonesia (KBRI) in Paris, France.

Director General of Cooperation, Regional and International Industrial Access (KPAII) of the Ministry of Industry, Eko S.A Cahyanto, who was present at the business forum, also held one-on-one meetings with several French companies, such as ARCHETYPE Group, THALES, KSAPA, HDF Energy, Energy Pool , Flying Whales, and Michelin.

"With these various strategic steps, Indonesia is determined to advance the industrial and economic sectors to achieve sustainable and competitive growth in the global market," said Eko in a written statement received by VOI, Tuesday, October 17.

Apart from that, one-on-one meetings were also held between Indonesian and French companies, namely PT Yogya Presisi Teknikatama Industri (PT YPTI) and Airbus, as well as PT Free The Sea with KSAPA and Thales.

These companies are exploring cooperation and will hold follow-up meetings as a follow-up.

In this business forum, the Indonesian side provided a strategic view covering a number of important issues. One of the points expressed was the important role of the manufacturing industry as the main driver of economic growth.

This is proven by the performance of the manufacturing industry in Indonesia in the second quarter of 2023 which was able to contribute 16.30 percent to Gross Domestic Product (GDP). Apart from that, the industrial sector also succeeded in contributing 27.4 percent to tax revenues, 37.8 percent to investment, and up to 71.09 percent to national exports.

The World Bank noted positive developments in national income, with Indonesia's Gross National Income (GNI) per capita increasing by 9.83 percent to 4,580 US dollars in 2022. Further projections show an increase in GNI per capita to 5,550 US dollars in 2025 and the GNI target per capita reaches 30,300 US dollars in 2045.

The Indonesian government itself has a National Industrial Development Master Plan (RIPIN) as the main guide, covering 10 priority industries which are divided into upstream, supporting and downstream industries, with a focus on sectors such as agro-based upstream industry, metal and non-metal base minerals, as well as oil and gas.

The distribution of industrial areas in Indonesia is adjusted to the potential of natural resources, including Sumatra which is related to downstream resources, Kalimantan which is green and renewable energy oriented, as well as Sulawesi, Maluku and Papua which utilize resources such as nickel and gas.

The potential that Indonesia has is a large capital for the development of domestic industry to support local content.

Furthermore, the Indonesian Government is also focusing on developing Smart Eco-Industrial Parks to improve environmental, economic and social performance in industry.

As of July 2023, there are 136 Industrial Areas (KI) spread throughout Indonesia. To increase industrial competitiveness, the government also provides fiscal incentives, such as Tax Holidays, Tax Allowances, as well as non-fiscal incentives such as training and certification.