Minister Of Industry Claims Indonesia's Manufacturing Add Value Reaches 255 Billion US Dollars In 2023

Minister of Industry Agus Gumiwang Kartasasmita (Photo: Kemenperin)

JAKARTA - The Ministry of Industry (Kemenperin) noted, the added value of manufacturing value added (MVA) reached 255 billion US dollars in 2023.

The added value of the manufacturing sector in the country increased by 36.4 percent on an annual basis. Given, in the previous year, Indonesia's MVA was recorded at 187 billion US dollars.

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the increase in added value also made Indonesia's ranking as Top Manufacturing Countries move from 14th in the world in 2022 to 12th in 2023.

"For this reason, the manufacturing industry must continue to strengthen its competitiveness with the spirit of Making Indonesia 4.0," Agus said on the Tech Link Summit agenda, quoted Friday, July 19.

Through this program, domestic industries must be able to jump technology innovation in a series of business processes with the aim of increasing added value and streamlining production costs.

In this case, the Ministry of Industry encourages industrial companies to collaborate with domestic startups to implement advanced manufacturing technology, such as AI to increase productivity, sustainability and robustness of the supply chain or supply chain industry.

Moreover, Agus said, until January 11, 2024, the number of Indonesian startups reached 2,566 companies or ranked 6th largest in the world based on the Startup Ranking report.

The number of startups in the country is only below the United States (78,073), India (16,302), England (7,079), Canada (3,876) and Australia (2,793). Indonesia is actually above Germany (2,445), France (1,650), Spain (1,492) and Brazil (1,185).

"It also contributes to the value of Indonesia's digital economy which will reach 82 billion US dollars in 2023 and is estimated to reach 109 billion US dollars by 2025," said Agus.

According to Agus, this potential must be utilized as well as possible. Cooperation with tech startups is a quick wins strategy for the industry, especially to accelerate the implementation of technological innovation according to market demands.

"Good collaboration between tech startups, industry, academics and the government will certainly accelerate the adoption of the latest technology in the manufacturing sector, which in turn will significantly increase economic growth," he said.

This is in line with the Ministry of Industry's efforts to bring together industries with various technological innovations through Startup4industry as technology providers that prioritize the implementation of green industries and support industrial sustainability.