The Increase In Government Capital Expenditures Makes The Industrial Industry Grow 18.75 Percent

Director of Machinery Industry and Agricultural Machinery Equipment of the Directorate General of ILMATE, Ministry of Industry Solehan. Photo: Doc. Ministry of Industry

JAKARTA - The performance of the metal, engine, transportation and electronic industry (ILMATE) recorded positive growth of 5.19 percent (year on year) until the second quarter of 2025.

This achievement was, among other things, supported by a surge in sub-sectors of the machinery and equipment industry which grew 18.75 percent or the highest since 2012.

Director of the Industrial Machinery and Agricultural Machinery of the Directorate General of ILMATE of the Ministry of Industry (Kemenperin) Solehian revealed that the performance of the machinery and equipment industry cannot be separated from the increase in government capital expenditure which increased by 30.37 percent.

The increase in capital expenditure has a direct impact on increasing production and investment.

"We are optimistic that the growth and contribution of the manufacturing sector can still be increased even higher if it is supported by a pro-industrial policy," said Solehan as quoted from his written statement, Thursday, August 14.

Solehan highlighted the importance of transformation towards digitization and automation as a strategic step that cannot be delayed to increase national competitiveness.

This strategy must be accompanied by the strengthening of human resources, the development of digital infrastructure and the push for sustainable innovation.

He said the government continues to accelerate independence in its efforts to produce machinery and industrial equipment as a basis for more in-depth industrialization. Among other things, by focusing on government collaboration, industry players and research institutions to increase design capacity and domestic manufacturing.

"This collaborative step is to ensure that the national industry is able to produce tools according to the needs of the priority sector. In addition, it is expected to be able to reduce dependence on imports and strengthen product competitiveness in the domestic and global markets," he said.

The Ministry of Industry's Directorate of Industrial Engineering and Agricultural Machinery also formed the Indonesia Manufacturing Center (IMC) which acts as a facilitator of industrial collaboration, users, R&D and academic institutions.

The IMC aims to accelerate downstream technology and produce engine products according to trends and technological needs in Indonesia.

"The government has also prepared incentives, such as super tax deduction for industries that invest in research and development," he said.

Meanwhile, Chairman of the Indonesian Industrial Robots Association (ASRII) Malik Khidir conveyed the importance of developing an innovation-based ecosystem to strengthen the competitiveness of the national industry. One of the strategic steps that is encouraged is through the integrated Indonesia Manufacturing Center national movement.

Malik hopes that the innovation center can be a forum for collaboration between industry players, academics and the government in developing technology, especially in the field of automation and robotics.

"We need to build an ecosystem that not only produces research, but is also able to commercialize innovation into useful products for industry and society," he said.

Adapun salah satu narasumber dalam agenda FGD tersebut adalah PT Kubota Indonesia.

Perusahaan itu telah melakukan ekspor produknya ke tujuh negara, di antaranya ke Australia dan Afrika Selatan, yang menunjukkan kualitas dan daya saing produk di pasar global.

One of the speakers on the FGD agenda is PT Kubota Indonesia.

The company has exported its products to seven countries, including Australia and South Africa, which show product quality and competitiveness in the global market.