Manufacturing Exports Reach 111 Billion US Dollars, Minister Of Industry Agus Gumiwang: Industry Becomes The Strongest Sector In Facing COVID-19

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

JAKARTA - The Ministry of Industry (Kemenperin) reports that the export performance of the manufacturing or processing industry increased by 34.12 percent from January to August 2021 compared to the same period the previous year or year on year (yoy). The resulting export value reached 111 billion US dollars.

Minister of Industry Agus Gumiwang Kartasasmita explained that the industrial sector contributed the most to 78.16 percent of the total national export value for eight months this year which reached US$ 142.01 billion.

Furthermore, Agus said this achievement shows that the industry is the economic sector that has the strongest resistance to the COVID-19 pandemic.

"We thank and give the highest appreciation to industry players in the country because they are still aggressive in continuing to penetrate their export markets in the midst of the current pandemic," he said in a statement, quoted on Thursday, September 16.

Based on data from the Central Statistics Agency (BPS), the export value of the processing industry in August 2021 amounted to 16.37 billion US dollars, an increase of 20.67 percent compared to July 2021 or month to month (mtom) and a 52.62 percent jump compared to August 2020 ( yo). The industrial sector contributed the largest up to 76.42 percent of the total national export value in August 2021 amounting to US$21.42 billion.

Furthermore, Agus is optimistic that the outstanding performance recorded by the industrial sector can spur efforts to recover the national economy.

"This proves that in the midst of the limitations of the pandemic, the Indonesian manufacturing industry in general has high resilience so that it can still record positive growth," he said.

The government, said Agus, is determined to maintain the continuity of industrial activities so that they can continue to run well. Therefore, Agus said, support from all parties is needed in an effort to create a conducive business climate in the country.

Moreover, Agus said, the activity in the industrial sector will have a broad impact on the economy, including foreign exchange earnings and employment.

"Therefore, we work hard to maintain the availability of raw materials, provide ease of business permits, facilitate incentives, and also encourage the expansion of the export market," he explained.

The added value of the national manufacturing industry reaches 281 billion US dollars

Previously, the Ministry of Industry (Kemenperin) stated that the added value of the national manufacturing industry reached US$281 billion or equivalent to Rp. 3,990 trillion. Meanwhile, this number is the highest in Southeast Asia (ASEAN). With this notch, Indonesia is a manufacturing base in the region.

Spokesman for the Ministry of Industry, Febri Hendri Antoni Arif, said the government would optimize this opportunity to improve economic conditions. That way, there will be a double effect or a multiplier effect, including employment, export foreign exchange, and increasing contributions to taxes and excise.

"Various steps have been taken by the Ministry of Industry to increase added value in the industrial sector, including encouraging downstreaming, import substitution, and making industry in the country part of the global supply chain," he said in a written statement, Tuesday, September 14.

The potential of the national manufacturing industry, said Febri, could further dominate the international market with the abundance of natural resources (SDA) that are sufficiently available, as well as the potential of skilled productive-aged human resources (HR). So as to increase the competitiveness of domestic production.

He said, Indonesia has many superior resources compared to neighboring countries such as Malaysia, Vietnam and Thailand. In fact, this is reflected in the added value generated by Thailand which is only 1.23 billion US dollars, Malaysia 81.19 million US dollars, or Vietnam 41.7 million US dollars.