JAKARTA - The processing industry consistently provides the largest contribution to the achievement of national export value. In January-December 2019, exports of processing industrial products were able to penetrate up to US $ 126.57 billion or contributed 75.5 percent of Indonesia's total exports which touched US $ 167.53 billion over the past year.
"The government is indeed focusing on boosting the value of exports to improve our trade balance. Therefore, the manufacturing sector has a very important role to play in achieving these targets, "said Minister of Industry Agus Gumiwang Kartasasmita in a statement received in Jakarta, Thursday, January 16.
Based on data from the Central Statistics Agency (BPS), the five sectors that contributed most to the achievement of the export value of the processing industry throughout 2019, namely the food industry, which contributed up to US $ 27.16 billion or contributed 21.46 percent. This was followed by the base metal industry at US $ 17.37 billion (13.72 percent).
Next, the shipping value of the chemical industry and goods made of chemicals was recorded at 12.65 billion US dollars (10 percent), the apparel industry exceeded 8.3 billion US dollars (6.56 percent), and the paper and paper goods industry is a major contributor 7.27 billion US dollars (5.74 percent).
The five main export destinations for Indonesian manufactured products in the January-December 2019 period, namely to the United States (13.64 percent), China (13.48 percent), Japan (8.7 percent), Singapore (6.94 percent) , and India (5.17 percent).
"The government continues to strive to expand the export market, especially to non-traditional countries," said Agus.
The Minister of Industry said that various strategic steps have been carried out by the Ministry of Industry in an effort to increase the export value of the manufacturing sector. These efforts include fostering industry through increasing competitiveness and preparing superior products.
"Then, the use of free trade agreements (FTA) such as accelerating FTA negotiations, expanding to non-traditional markets, and initiating bilateral FTAs according to industry needs," he said.
In addition, international promotion programs are carried out through promotion and export assistance, increasing the capacity of producers for exports, and linking and matching with global production networks.
"It is also necessary to support facilities such as facilitation of export financing, assistance in unfair trading cases, and reduction of export barriers (NTMs)," he added.
The Minister of Industry added, Indonesia as the country's official partner at the Hannover Messe 2020 event, could be a good momentum to introduce the readiness of Indonesian industry in the industrial era 4.0. Then, he continued, promote investment and export cooperation in the industrial sector, as well as strengthen bilateral cooperation with Germany and with other countries that are oriented towards technological innovation.
"This event is important for Indonesia not only because it is the first country in ASEAN to become an Official Partner Country, but also supports national branding efforts on Indonesia's position as a new power in the world economy and a global manufacturing player," he explained.
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