The Minister Of Industry Admits That The Corona Virus Has An Impact On The Processing Industry

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

JAKARTA - Minister of Industry Agus Gumiwang Kartasasmita said that the emergence of the corona virus could have an impact on the growth of the processing industry in the short term.

"Now with the corona virus, it will certainly affect the industrial sector," said Agus Gumiwang in Jakarta, Wednesday, February 5.

The Minister of Industry said the outbreak could reduce the supply of raw materials or capital materials from China needed by domestic industries to boost production.

On the other hand, he added, national manufactured goods will also experience export barriers to China due to closed trade access and limited purchasing power.

"We have to aggressively seek out non-traditional markets to sell our products," said the Minister of Industry.

However, Agus Gumiwang said the government would focus on strengthening the competitiveness of the domestic industry by making a number of improvements so as not to be affected by the corona virus.

These improvements include lowering industrial gas prices, building new industrial estates outside Java and strengthening access to finance for Small and Medium Industries (IKM).

In addition, making industrial waste management facilities and preparing electricity and water energy facilities to maintain the smooth running of production.

The Minister of Industry is optimistic that through the improvement the manufacturing industry growth target in 2020 of 5.3 percent can be achieved, especially since the manufacturing sector in 2019 only recorded a growth of 3.8 percent.

The role of the processing industry is very large for the economy because it is the largest contributor to the structure of the Gross Domestic Product (GDP), reaching 19.7 percent in 2019.