Minister Of Industry Agus Gumiwang Targets National Metal Production To Reach 6 Million Tons Per Year In 2022

JAKARTA - The Ministry of Industry (Kemenperin) targets industrial production of minerals and metals to reach 6 million tons per year next year. This target will be achieved by integrating upstream production.

The Minister of Industry Agus Gumiwang Kartasasmita said that one of the industries that has built integration in the upstream sector is stainless steel. Where its production is capable of producing nickel derivative products with a capacity of 4 million tons per year.

"The production capacity is targeted to reach 6 million tons per year in 2022. The government has also built a processing facility for bauxite ore to alumina with a production capacity of 3 million tons per year", he said in an official statement, quoted Wednesday, August 18.

Agus said that in order for the production to be accepted by the international market, the government would increase its competitiveness globally. According to him, this will become an important concern for the government in developing the national metal industry in the next few years.

"Improving the global competitiveness of industry in Indonesia is an important agenda that is also a concern of the government", he said.

Agus said, one way to increase the competitiveness of the national industry is to ensure the availability of energy. Because in the production of manufacturing, energy is the most important component. Including the price of industrial electricity which continues to be gradually lowered by the government.

Agus is optimistic that the target can be achieved with the various policies that have been taken. Moreover, he said, the competitiveness rating of the national industry continues to increase in the international arena.

"The 2020 Competitiveness Industrial Performance (CIP) Index report shows an improvement in Indonesia's manufacturing competitiveness ranking, which is now ranked 39th in the world. One important factor in the competitiveness of the manufacturing industry is the availability of energy", he said.

Ministry of Industry achieves 35 percent import substitution in 2022

Agus revealed the strategy of the Ministry of Industry in achieving the 35 percent import substitution policy target by 2022 to reduce import dependence while encouraging the strengthening of the domestic industrial structure.

"The Ministry of Industry has issued a 35 percent import substitution policy in 2022 with priority on industries with a large import value in 2019 such as machinery, chemicals, metals, electronics, food, electrical equipment, textiles, motor vehicles, metal goods, as well as rubber and materials of rubber", said Agus.

The strategy adopted is to reduce imports to stimulate the growth of the domestic import substitution industry, increase the utility of the domestic industry, and increase investment in the production of imported substitute goods.

Agus said all countries must use various instruments to protect their industry, fortify their production sector, and protect their workforce and citizens. Partisanship and security support are aimed at providing opportunities for domestic industries to develop and increase competitiveness until they are established and able to compete in global competition.

Otherwise, imports will be rampant and domestic industries will never be able to be sovereign in their own territory. In addition, the independence and sovereignty of the domestic industry must also be supported or supported by changes in mindset and behavior.