Anticipate The 2023 Recession, Government Incentives For Industrial Actors

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

Minister of Industry Agus Gumiwang Kartasasmita plans to provide incentives and stimulus to industry players in order to anticipate the impact of the global recession which is predicted to occur in 2023.

"The government will make policies, especially incentive policies or stimulus that we have carried out in the beginning of COVID-19, which are basically much more complicated than we are currently facing," he said at the "Link and Match IKM Automotive Component with Supply APM" event in Jakarta, Tuesday, October 31.

Minister of Industry Agus said that the incentives or stimulus provided are expected to encourage economic optimism in Indonesia.

"Domestic market is important for us to create, domestic market strength is also important, it is our capital," he said.

Even so, the Minister of Industry has not disclosed what incentives will be given. He admitted that he would still study and review it because many factors made it difficult for the industry, ranging from global markets, to industrial raw materials.

Agus also added that so far he has not received reports regarding layoffs from industry players affected by the global crisis.

Furthermore, Agus said, the Ministry of Industry will strive so that industry players can continue to run their businesses without having to reduce employees in the midst of difficult conditions.

"We have not received a report from industry players regarding layoffs, but we continue to carry out escorts so that they can continue to operate without reducing their employees," he added.

It is known that Deputy Chairman of the Indonesian Chamber of Commerce and Industry for Maritime Affairs, Investment, and Foreign Affairs Shinta W Kamdani predicts the labor-intensive sector will lay off layoffs because market demand from this sector has fallen sharply.

However, Shinta did not predict when the labor-intensive sector layoffs would occur. He believes that many companies are doing efficiency in various fields in order to maintain their survival.