Minister Of Industry Agus Gumiwang: Want The Manufacturing Industry To Grow 4 Percent? Succeed In Covid-19 Vaccination!

Illustration of industrial activities (Photo: Ministry of Industry)

JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said the COVID-19 vaccination program and the application of Law Number 11 of 2020 concerning Job Creation are the two main keys to reviving the performance of the national industry this year.

For this reason, his party has prepared four strategic steps to support the projection predictions. First, maintaining industrial productivity during a pandemic through the policy of granting Operational Permits and Industrial Activity Mobility (IOMKI). Meanwhile, 18,527 IOMKIs have been awarded to industrial companies to be able to protect jobs for 5.16 million workers.

Second, increasing the capacity of the domestic industry in supporting the handling of Covid-19, especially the pharmaceutical industry for the supply of medicines and medical devices. Third, optimizing the Domestic Product Use Improvement (P3DN) program.

"The fourth is to continue the 35 percent import substitution program, which is carried out simultaneously by increasing production utilization, encouraging the deepening of the industrial structure, and increasing investment," he said in an official statement, Thursday, January 14.

Through these various programs and policies, the Minister of Industry is optimistic that the manufacturing industry in the country will grow positively, approaching 4 percent in 2021.

For information, in quarter III / 2020, the growth of the manufacturing industry contracted by 4.31 percent and in quarter II / 2020 also contracted 6.19 percent.

Agus 'optimistic attitude is also based on improvements to the Indonesian Manufacturing Purchasing Managers' Index (PMI) which continues to be at an expansionary level. In December 2020, the Indonesian Manufacturing PMI was at the level of 51.3, an increase compared to the previous month's achievement at 50.6.

An index figure above 50 means expansion, while below 50 means contraction. The Indonesian Manufacturing PMI at the level of 51.3 is the highest achievement in Indonesia's history during HIS Markit's survey in industrialized countries.

Furthermore, Bank Indonesia noted that business activities in the manufacturing industry began to show signs of expansion. The industry's performance is predicted to continue improving in the first quarter of 2021.

This expansion was reflected in the Bank Indonesia Prompt Manufacturing Index (PMI BI) in the fourth quarter of 2020 which reached 47.29 percent. This achievement is much higher than the two previous quarters which touched 45.64 and 44.91 percent.

In terms of investment value, continued the Minister of AGK, investment in the industrial sector for the January-September period also increased 37% compared to the same period in 2019.

"Apart from that, exports of manufactured products have also increased significantly. This condition brings hope for economic recovery in 2021, "concluded the Minister of Industry.