Growth Of The Centering Industry Sector 5.01 Percent In 2022, Minister Of Industry Agus: Downstreaming And Expenditure Of Domestic Products Is The Key

Minister of Industry, Agus Gumiwang Kartasasmita. (Photo: Doc. Kemenperin)

JAKARTA - The world of industry is still predicted to face a number of challenges this year. Because, the world is faced with the threat of a global recession.

Even so, the industrial sector is still showing very good performance in 2022, by recording a growth rate of up to 5.01 percent and becoming the highest source of growth for the national economy, which is 1.01 percent.

The Ministry of Industry (Kemenperin) said, there are at least three things that support the growth of this sector, namely industrial downstream which continues to increase, the growth of the automotive industry which has reached double digits, and Indonesian manufacturing products that have been included in the global value chain section.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the success of downstreaming was shown by the growth of the basic metal industry which reached 14.8 percent or double-digit growth.

"Similarly, the automotive industry is 10.67 percent. Both products have also entered the global chain, so it can be said that the downstream program that we are fierce in has reached the target. We hope that double-digit growth can continue in 2023," Agus said in his official statement, Wednesday, February 8.

In addition, domestic consumption also contributes to economic growth.

The Central Statistics Agency noted that the stability of people's purchasing power was maintained, as can be seen from the sales of passenger cars which increased by 18.76 percent (c-to-c), an increase in motorcycle sales by 3.24 percent (c-to-c), and the growth in income from PPh article 21 which reached 18.36 percent (c-to-c).

"Increasing domestic demand has an effect on production activities, making it more expansionary," said Agus.

This can be seen in indicators, such as the Industrial Trust Index (IKI), the Indonesian manufacturing Purchasing Managers Index (PMI), and the Prompt Manufacturing Index Bank Indonesia.

The Ministry of Industry released IKI results in January 2023 which was at the level of 51.54, an increase compared to IKI December 2022 which touched the level of 50.9. Meanwhile, S&P Global reported that Indonesia's manufacturing PMI in January 2023 was 51.3, an increase compared to December 2022 at 50.9.

BI also released the Prompt Manufacturing Index of Bank Indonesia which reached 50.06 percent in the fourth quarter of 2022. "All these indexes show that the condition of the industrial sector remains expansive," said Agus.

Therefore, Agus said, his party will continue to encourage the implementation of the Program for Increasing the Use of Domestic Products (P3DN), this year.

"It can be seen that the president's commitment to this program is very large. There are hundreds of trillions of APBN allocated for the purchase of domestic industrial products. This is also proven in the electronics industry which has increased," he explained.

According to BPS data, the metal, computer, electronic goods, optics and electrical equipment industries grew by 7.62 percent, supported by high demand at the end of last year.

Along with that, the export value of the non-oil and gas processing industry in 2022 also reached 206.35 billion US dollars, an increase of 16.45 percent from the figure in 2021, which amounted to 177.2 billion US dollars, and is targeted to increase to 225 -245 billion US dollars, this year.

"The export performance (Indonesia) in 2022 is also extraordinary, when compared to the previous year. Apart from downstreaming, this increase is also driven by production diversions from several countries, which previously relied on supplies from Russia or Ukraine, then received supplies from Indonesia," said Agus.

Nevertheless, Agus stated the need to be vigilant against global economic conditions because of the conflict that is still happening today.

"This will result in its own disruption to the supply chain. We at the Ministry of Industry are trying to provide convenience to industry players through various incentives to reduce the impact felt by global economic turmoil," he said.