Minister Of Industry Agus Gumiwang Kartasasmita: Manufacturing Industry Investment Reaches IDR 103.5 Trillion In Quarter I-2022

Minister of Industry, Agus Gumiwang Kartasasmita. (Doc. Ministry of Industry)

JAKARTA - The Minister of Industry (Menperin) Agus Gumiwang Kartasasmita reported that the realization of investment in the manufacturing sector during January-March 2022 reached Rp. 103.5 trillion.

This amount gave a significant contribution of 36.7 percent to the total value of investment in the country in the first quarter of 2022, which reached IDR 282.4 trillion.

"Investment in the industrial sector in the first quarter of 2022 rose 17 percent year on year. This means that in the midst of global economic turmoil and the impact of the Covid-19 pandemic, investors' confidence, especially from the industrial sector, is still very high," he said, quoted on Tuesday, May 3.

The Minister of Industry explained that his party was proactive in attracting national and global investors to continue to invest in Indonesia. This is to strengthen the structure of domestic industrial manufacturing so that it can be more globally competitive.

In addition, Agus continued, the Indonesian government is determined to further create a conducive investment climate for business actors through the provision of various fiscal and non-fiscal incentives.

"The increase in investment also shows that government policies are still on the right track," he said.

The Ministry of Investment/Investment Coordinating Agency (BKPM) noted that in the first quarter of 2022, the realization of domestic investment (PMDN) in the manufacturing industry sector amounted to Rp. trillion.

The manufacturing sector that disbursed the largest funds in that period was the food industry with a value of Rp9.7 trillion through 2,181 projects. Then followed by the chemical and pharmaceutical industries of Rp. 4.6 trillion (846 projects), and the basic metal industry, metal goods, non-machinery and equipment of Rp. 2.6 trillion (432 projects).

Meanwhile, in January-March 2022, the realization of foreign investment (PMA) in the manufacturing industry sector amounted to USD 5.4 billion or contributed 52.9 percent of the total FDI achievement which was at USD 10.3 billion.

"The manufacturing industry sector contributed the most to the realization of FDI in the first quarter of 2022," said Agus.

The dominant contributors are the base metal, metal goods, non-machinery and equipment industries, amounting to US$2.5 billion with a total of 443 projects. Then followed by the chemical and pharmaceutical industries with US$ 854 million (650 projects), the food industry with US$ 686 million (951 projects), and the automotive industry and other means of transportation with US$ 542 million (468 projects).

"In total PMDN and PMA, the largest investment realization was contributed by the basic metal industry, metal goods, not machinery and equipment amounting to Rp39.7 trillion," concluded Agus Gumiwang Kartasasmita.