JAKARTA - The Minister of Industry, Agus Gumiwang Kartasasmita, is active in conveying the various potentials of Indonesia in its efforts to develop the manufacturing industry. He expressed this during a meeting with a number of global industry players, such as Nestlé and Amazon Web Services, Inc., at a series of activities at the World Economic Forum (WEF) 2020 in Davos, Switzerland.

"One of our interests is to find potential investors. We say that Indonesia has a huge wealth of natural resources and markets. Moreover, the current government is determined to spur the competitiveness of the manufacturing sector, especially in readiness to enter the industrial era 4.0, "said the Minister of Industry Agus in a statement received in Jakarta, Wednesday, January 22.

The industrial sectors targeted are in accordance with the priority road map of Making Indonesia 4.0, namely the food and beverage industry, the textile and clothing industry, the automotive industry, the chemical industry, and the electronics industry.

"We are approaching potential investors who are included in the five sectors, because those sectors can contribute up to 60 percent to GDP, exports and labor," said Agus.

The Minister of Industry said that the influx of investment from the industrial sector is believed to be able to strengthen the domestic manufacturing structure while simultaneously producing import-substituted products and spurring exports.

"Industrialization activities have so far provided a broad multiplier effect for the economy, such as an increase in the added value of raw materials, absorption of labor and foreign exchange earnings," he said.

According to Agus, potential investors are now starting to be interested in eyeing Indonesia as the main investment destination country because they see changes and policy reforms that can make it easier to run a business. For example, regarding the plan to issue the omnibus law.

"There are about 11 clusters discussed in the omnibus law Bill on Job Creation. There are clusters that make Indonesia an attractive country for potential investors. For example, about regulating the provision of land that is easier, and about employment. This regulation is very important, which makes Indonesia more attractive to potential investors, "he explained.

Agus added that the government has facilitated the development of a number of Special Economic Zones and integrated Industrial Zones to accommodate potential industrial sector investors who are interested in entering Indonesia. In fact, the government is also focused on efforts to develop the small and medium industrial sector (IKM).

"The government also encourages the competitiveness of IKM, by getting better access, starting from the supply of raw materials to licensing. In addition, we have invited them to go digital. We also encourage the application of SNI to protect domestic markets and consumers, "he added.

In addition, in an effort to face the development of the industrial era 4.0, the government has set a program to improve the quality of human resources (HR) as a national priority agenda. This is to seize the demographic bonus opportunities that Indonesia will enjoy until 2030.

"Therefore, the Ministry of Industry has taken various strategic steps in creating competent industrial human resources, such as the launch of a vocational education program that links and matches between SMK and industry," said Agus.

Furthermore, the government has also facilitated the provision of fiscal incentives in the form of super deduction taxes to invite industry players to be involved in the implementation of vocational education and R&D activities. "So, with skilled human resources and innovation, is the key for our industry to be more competitive in the global arena," he explained.

Other strategic steps that the government will focus on in efforts to develop the industrial sector include maintaining the availability of raw materials for sustainable productivity.

Then, we are trying to get energy more easily at competitive prices, such as electricity and industrial gas. "This will certainly accelerate the downstream industry," concluded the Minister of Industry.


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