Metal And Food Industry Mainstay Of Indonesian Exports

JAKARTA - The basic metal industry and the food industry are still able to make a significant contribution to foreign exchange through the achievement of their export value, despite the impact of the COVID-19 impact. Cumulatively, throughout January-May 2020, the manufacturing sector remains the largest contributor to national export performance.

"The positive record from the metal industry sector shows that the downstream policy can run well, by being able to increase the added value of domestic raw materials and to meet the needs of the international market," said Industry Minister Agus Gumiwang Kartasasmita in Jakarta, Friday, June 19.

Referring to data from the Central Statistics Agency (BPS), in the first five months of this year, the shipping value of the non-oil and gas processing industry exceeded US $ 51 billion or contributed up to 79.25 percent of the total national export value which reached US $ 64.4 billion.

For example, the base metal industry was able to record a brilliant export value in January-May 2020 of 9.2 billion US dollars or an increase of 41 percent compared to the acquisition in the same period in 2019 of around 6.5 billion US dollars.

In addition, the food industry was also able to carve its export performance positively amidst the pressure from the impact of the COVID-19 outbreak. During January-May 2020, the shipping value of the food industry exceeded US $ 11.4 billion, an increase of 8 percent compared to achievements in the same period in 2019 of around US $ 10.5 billion.

"In accordance with the aspirations of the Making Indonesia 4.0 roadmap, we are targeting the food and beverage industry to become a sector capable of dominating the Southeast Asian region," said Agus.

Other manufacturing sectors that contributed significantly to the export value of the non-oil and gas processing industry in the first five months of this year included the chemical and chemical goods industry, which recorded an export value of US $ 4.9 billion, followed by the apparel industry. 2.8 billion US dollars.

"In the chemical industry, we are targeting this sector to become a leading player in the biochemical industry. Meanwhile, for the textile and clothing industry, the government is focusing on becoming a leading functional clothing manufacturer," he explained.

The next manufacturing group that has a large export market potential is the computer industry, electronic goods and optics. In January-May 2020, the value of shipments from this sector was able to penetrate US $ 2.4 billion, an increase of around 14 percent compared to the achievements in the same period in 2019 of around US $ 2.1 billion.

For the electronics industry, the Minister of Industry said, his party would focus on increasing the ability of business actors in the domestic market. In addition, the leather, leather goods and footwear industry recorded an export value of US $ 2.3 billion in January-May 2020, an increase of about 4 percent compared to the achievement in the same period in 2019 of around US $ 2.2 billion.

"By seriously developing export-oriented sectors, we are optimistic that Indonesia can become part of the 10 countries with the largest economies in the world by 2030," said the Minister of Industry.

Agus also believes that the performance of the manufacturing industry will move quickly after handling COVID-19 is complete. This is because operational permits have been granted to strategic industrial groups while still applying health protocols.

"It should not be too far (the productivity aspect distance), must continue to be tight and not be left behind, so that later the new normal, at least when the vaccine has been found, the manufacturing industry will not take long to rebound back to the point like before COVID-19 was present," he explained.

According to the Minister of Industry, President Joko Widodo, who launched the tagline for productive and safe COVID-19, showed great concern for both health and the economy. In that sense, both are equally important to carry out with the new normalcy to deal with the most difficult times due to the COVID-19 pandemic.

"It can be read that the economic side is very important, although we must prioritize the health side and become a priority. The economic side in our context, the development of the manufacturing industry must be able to follow from behind, related to health management carried out by the government," he concluded.