The Ministry Of Industry Seeks To Raise Investment In The Manufacturing Industry

JAKARTA - The government is focusing on raising the value of investment in order to strengthen the structure of the national economy. One sector that plays an important role is the manufacturing industry, because its growth will increase foreign exchange earnings and create jobs.

"Mr. President Joko Widodo said that the development of the industrial sector, especially manufacturing, is very important for a country. Because, he is indeed an industrialist, so he knows very well the needs or constraints of industry players, "said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Monday, February 3.

Minister of Industry Agus explained, according to President Jokowi's direction, every rupiah spent, whether through investment or other sources, the goal is to create jobs.

"So, what needs to be done now is to bring the maximum investment possible," he said.

Furthermore, any strategic government policies, especially those related to efforts to spur economic growth, must have an impact on the creation of a conducive business climate. This step is believed to increase the confidence of investors who want to invest in Indonesia.

“Moreover, Indonesia is still the main destination country for investors. This is the result of our meetings with global companies. In addition, their response has been very positive towards the commitment of the Indonesian Government and its investor-friendly policies, "said Agus

Therefore, concrete steps that need to be continued include simplifying business licenses, improving policies that affect national and global supply chains, harmonizing policies of central and regional governments, and fixing regulations that can attract labor-intensive sector investment.

"An example is the issuance of an omnibus law on taxation and employment copyright, we are optimistic that we will be able to attract investment. In fact, the provision of fiscal incentive facilities in the form of super tax deduction has become a sweetener for potential investors, "he added.

The Minister of Industry emphasized that his party is determined to boost the value of national investment, by actively engaging and escorting a number of potential industry players to immediately realize their investment in Indonesia.

This will be able to boost the rate of economic growth, reduce the current account deficit, strengthen the structure of the domestic manufacturing industry, encourage downstreaming, produce import substitution products, increase the value of exports, and reduce unemployment.

"In accordance with the implementation of the Making Indonesia 4.0 roadmap, we prioritize five sectors, namely the food and beverage industry, the textile and clothing industry, the automotive industry, the electronics industry, and the chemical industry," he said.

Based on the records of the Ministry of Industry, throughout 2019, the manufacturing industry was able to make a significant contribution to the achievement of national investment value. This can be seen from the contribution of domestic investment (PMDN) in the industrial sector amounting to IDR 72.7 trillion or 18.8 percent of the total PMDN which is at IDR 386.5 trillion.

Meanwhile, foreign investment (PMA) in the industrial sector touched Rp. 143.3 trillion or 33.8 percent of the total FDI which reached Rp. 423.1 trillion. So, as a whole, the industrial sector disbursed funds of up to Rp. 216 trillion or contributed 26.7 percent of the total investment realization in Indonesia worth Rp. 809.6 trillion last year.

The five manufacturing sectors that contributed the most to the investment value in 2019, namely the base metal industry with an achievement of Rp. 58.3 trillion, followed by the food and beverage industry Rp. 54 trillion, the chemical industry and goods from chemicals Rp. 23.5 trillion, the non-mineral goods industry. metal Rp.10.7 trillion, and the paper and paper goods industry Rp.8.9 trillion.