JAKARTA - The Ministry of Industry noted that the development of the national manufacturing industry sector in 2022 is still colored by turmoil and challenges, both domestically and globally.
Even so, Indonesia has a strong foundation to keep going and answer all the challenges that lie ahead, compared to neighboring countries.
Minister of Industry Agus Gumiwang Kartasasmita said, in 2020, the growth of the non-oil and gas processing sector had been depressed to minus 2.52 percent due to the impact of the COVID-19 pandemic.
However, through various strategic policies to accelerate the national economic recovery, the performance of the manufacturing industry sector in the country continues to rise.
"The performance will be excited again in 2021 with a growth rate of 3.67 percent. Then, the positive trend will continue in 2022, which is reflected in the first quarter growing by 5.47 percent, the second quarter increasing by 4.33 percent, and the third quarter by 4.88 percent," Agus said at the 2022 End of Year Press talks and the 2023 Industry Outlook Seminar in Jakarta, Tuesday, December 27.
This brilliant achievement, said Agus, proves that the government is able to maintain industrial conditions so that it continues to grow positively in the midst of turmoil and challenges.
"As for (economic growth) from the contribution aspect in GDP, the non-oil and gas processing industry in the third quarter of 2022 was 16.1 percent. However, it does not mean that the industry is de-industrialized," he said.
According to Agus, the contribution of the industry is still the highest among other economic sectors.
The value of industrial exports in January-October 2022 is known to reach 173.20 billion US dollars or contribute 76.51 percent of the total national export value.
"This figure has exceeded the export achievements of manufacturing throughout 2020, amounting to 131.09 billion US dollars, when compared to January-October 2021, the export performance of the manufacturing industry in January-October 2022 increased by 20.39 percent," said Agus.
Next, the realization of investment in the manufacturing sector in January-September in the third quarter of 2022 was recorded at IDR 343.06 trillion. This figure is up 49.24 percent when compared to the realization of investment in the same period in 2021, which is IDR 229.87 trillion.
"The realization of investment in 2022 is arguably the achievement of realization with the highest value compared to 2019-2021, when the world is full of challenges," said Agus
In the employment aspect, the manufacturing industry sector also shows recovery in terms of employment.
As a result of the COVID-19 pandemic, the number of workers in the manufacturing industry has decreased by two million people, from 19.14 million people in 2019 to 17.4 million people in 2020.
However, along with the rise of the manufacturing industry sector from the impact of the pandemic, there will be an additional employment of 1.2 million people in 2021, bringing the total number of workers in this sector back to 18.64 million people.
"This year, 500 thousand more, so that 19.11 million people are recorded in the manufacturing industry," said Agus.
Agus added that the manufacturing industry in the country was also seen from the achievement of the Industrial Trust Index (IKI) in November which showed an expansion direction, which was at 50.89.
"From this figure, we can identify that there are 11 sub-sectors that are expanding (71 percent of GDP Industry) and 12 sub-sectors that have contracted (29 percent of GDP Industry)," he added.
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