Minister Of Industry Agus Gumiwang Is Happy That Entrepreneurs In Batam Are Increasing The Investment

Minister of Industry Agus Gumiwang Kartasasmita (Photo: Special)

JAKARTA - The government, through the Ministry of Industry, is targeting investment in the manufacturing sector to reach IDR 323.56 trillion in 2021 or an increase of IDR 58.28 trillion from the 2020 target of IDR 265.28 trillion.

"The government is determined to continue to create a conducive business climate through strategic policies, which can attract foreign and domestic investors so that they are more confident about investing in Indonesia", said Industry Minister Agus Gumiwang Kartasasmita in an official statement on Sunday, April 18.

In line with these efforts, the Ministry of Industry's Director General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE), Taufiek Bawazier conveyed that the government's commitment to encouraging increased investment in the industrial sector has been stated in several recently launched regulations.

"For example, the issuance of the Job Creation Law and its derivative regulations, will build a conducive investment climate ecosystem and become an attraction for investors, and it is hoped that the import substitution program is targeted to reach 35 percent by the end of 2022", said Taufiek.

The Director-General of ILMATE also mentioned several sectors that are still excellent for investors to invest in, one of which is the electronics industry.

"We continue to strive to spur investment development in the electronics industry sector, where the electronics industry is one of the priority sectors on the road map for Making Indonesia 4.0", he said.

PT. Pegatron Technology Indonesia, one of the electronics manufacturers from Taiwan that has been operating in Indonesia since 2010 has started to expand in 2019. One of the expansions of its new business is producing other telecommunication equipment.

Pegatron's first business unit in Southeast Asia is located on a one-hectare land, in lot 5 of the Batamindo Industrial Estate, Sungai Beduk District, Batam.

At the opening ceremony in 2019, the company employed 40 workers with an investment of USD 40 million. This value is the initial investment of the planned USD 1.5 billion which will be realized in stages, and at the same time will increase employment.

Until 2021, PT Pegatron Technology Indonesia has invested USD 7 million to renovate the factory and around USD $ 1 million to procure machinery and equipment, which is currently in the trial production development stage.

"In the midst of the current COVID-19 pandemic conditions, we appreciate the commitment of investors who have invested in Indonesia", said Taufiek.

PT Pegatron Technology Indonesia has made its first export to the United States market for smarthome, wi-fi, and power bank products by cooperating with PT. Sat Nusapersada in running his business.

The company's target market, for the time being, is 100% for the export market, but if there is domestic demand that matches economic and business calculations, the company will reconsider filling the domestic market.

In mid-2021, PT Pegatron Technology Indonesia also plans to apply for technical verification of industrial business licenses (IUI) for other new business fields.

"Once again, we appreciate PT Pegatron Technology Indonesia for the plan to expand its investment in Batam. In the near future they will bring in experts to help set up factories in Indonesia for six months", said Director of the Electronics and Telematics Industry of the Ministry of Industry, Ali Murtopo Simbolon.