Many Industries Grow Slow, Ministry Of Industry Implements Three Mitigation Policies

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

JAKARTA - The Ministry of Industry said the food and drink industry has not grown normally as before the COVID-19 pandemic this year. The slowdown has also become a big job for the Ministry of Industry (Kemenperin).

Minister of Industry Agus Gumiwang Kartasasmita said industrial growth was slowing because foreign demand was disrupted due to global pressure. Likewise, the input of raw materials is quite high, both in terms of availability and price.

"Before COVID-19, this sector grew above the average national economic growth. This is what we will return to," Agus said in a virtual press conference, Monday, November 7.

Despite weakening global demand, said Agus, the food and beverage industry grew by 17.83 year on year in the third quarter of 2022.

Agus also said that the negative growth occurred in the chemical and pharmaceutical sectors, then the non-metallic minerals and pharmaceutical industries.

"This has a lot to do with the weakening market in Europe and the high value of raw material inputs," he said.

Before the data was released by BPS, Agus said the issue had been discussed by internal parties together with various associations. A number of mitigation measures to deal with global pressures and risks have also been prepared.

The first important step, said Agus, is to find new markets for exports. The government will also open access to Latin America and South America, Africa, as well as Middle Eastern and Asian countries.

"The second mitigation step is to increase the domination of the domestic market. This strengthens promotion and cross-sectoral cooperation so that the use of domestic products can grow and grow the industry itself," he said.

The third or final mitigation step is to strengthen industrial competitiveness through easy access to raw materials, strengthening the business ecosystem, and strengthening the production side. The instruments to be used are import duties borne by the government, relaxation of industrial raw materials, and so on.