The Ministry Of Industry Targets Chemical, Pharmaceutical And Textile Industries To Grow 6.59 Percent In 2025

JAKARTA - The Ministry of Industry (Kemenperin) targets the growth of the chemical, pharmaceutical and textile (IKFT) industry to grow 6.59 percent by 2025, in line with the national economic growth target of 8 percent in the next five years.

Based on data from the Ministry of Industry, the average growth of the IKFT sector in 2018-2024 grew by 2.5 percent with the highest growth of 6.1 percent in 2019. In terms of contribution, the national IKFT sector to gross domestic product (GDP) reached 2.8 percent in the last two years.

Acting Director General of IKFT at the Ministry of Industry, Reni Yanita, said that his party is targeting the contribution of the IKFT sector to reach 3.62 percent next year. He is optimistic about this target, supported by a number of sectors.

"The performance of the IKFT sector will continue to skyrocket if the implementation of strategic programs and activities carried out is supported by a conducive business climate through regulations that favor domestic industry players," said Reni in a written statement, Wednesday, December 18.

In this case, the sub-sector which is expected to be the driver of the growth target, includes the chemical, pharmaceutical and traditional medicine industries at 7.98 percent-9.33 percent and the non-metal goods industry growing 8.36 percent-8.74 percent.

According to Reni, there are a number of policies needed for IKFT to encourage 8 percent economic growth targets, namely facilitating petrochemical investment in Bintuni Bay, Tanjung Enim to East Kutai, promotion of textile, footwear and downstream chemistry sectors and downstream industrial downstreaming to business licensing.

On the other hand, other non-fiscal policies that are being encouraged are the ease of providing incentives and controlling imports. Furthermore, there is a policy of increasing technology and innovation through engine restructuring to implementing economic circulars.

Reni also said that his party would encourage improvements to supply chains through policies to strengthen the upstream industry in the TPT sector, harmonize tariff and non-tariff policies between upstream-between-ilir and policies to increase the efficiency of material flow flow.

"We are also implementing several policies that focus on optimizing the domestic market, such as facilitation in the context of implementing and increasing the value of the domestic component level (TKDN) and increasing domestic products (P3DN) in the IKFT sector," he said.

With these policies, the Ministry of Industry is targeting IKFT growth in 2027 to reach 7.97 percent and in 2029 it is 7.59 percent. Meanwhile, the contribution to GDP is targeted to increase to 3.86 percent in 2029.

Subsectors that are expected to drive this contribution include the traditional chemical, pharmaceutical and drug industry with a contribution of 1.44 percent-1.62 percent and the textile and clothing industry with a contribution of 1.07 percent -1.09 percent.