The Value Of Manufacturing Investment Is Considered To Be A Spike In The Last Decade

Manufacturing (Photo: dock. Antara)

JAKARTA - The value of Indonesia's investment is considered to have increased in the non-oil and gas processing sector in the last decade or 10 years.

CORE Indonesia economic researcher Yusuf Rendy Manilet explained that the manufacturing industry in 2014 had an investment value of IDR 186.79 trillion, then increased to IDR 565.25 trillion in 2023. According to him cumulatively, the realization of investment in the non-oil and gas processing sector for 10 years (2014-2023 period) has reached IDR 3,031.85 trillion.

"The continued increase in the value of investment in the manufacturing industry is one indication that Indonesia is not experiencing a deindustrialization condition," he said, quoting Antara.

In addition, he said that one of the programs well received by manufacturing industry players was downstream policy. He assessed that downstreaming recorded significant investment realization performance, especially for the sub-sector of the basic metal industry, so that if the program continues, it will be in line with the government's efforts to encourage the realization of various mining products.

He hopes that the added value of the product produced from the downstream program will also help the growth of the manufacturing industry sector in the medium to long term.

Furthermore, the CORE economist said, to maximize the potential of the manufacturing industry, it is necessary to increase coordination between ministries and institutions.

This is so that the policies that are rolling can provide greater sustainable benefits for the Indonesian economy. "The regulations or regulations that have been decided at the central level cannot be implemented at the regional level for certain reasons and I think this needs to be improved. I think the government is in a position to improve, just now how to ensure that this repair process takes place as expected by the government," he said.

Meanwhile, PermataBank Chief Economist Joshua Pardede said that the progress of the manufacturing industry sector, which is supported by the downstream program, is seen as having a positive impact in overcoming the problem of widening the current account deficit (CAD) faced by Indonesia.

He assessed that several main causes of CAD widening could already be reduced by the government through downstreaming policies.

Indonesia's position in the world manufacturing ranks is strengthened by the value of industrial output which continues to increase in the period 2020 to September 2023. In 2020, the value of industrial output was recorded at 210.4 billion US dollars, then increased to 228.32 billion US dollars in 2021, and increased again by 241.87 billion US dollars in 2022.

Meanwhile, until September 2023, the value of industrial output has reached around US$192.54 billion.