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JAKARTA - The Ministry of Industry (Kemenperin) continues to encourage downstreaming in the petrochemical industry. This effort is considered strategic because it can produce primary raw materials to support many downstream manufacturing industries, such as textiles, automotives, machinery, electronics, and construction.

"Currently, the Government is overseeing a number of giant petrochemical industry development projects, such as petrochemical investments in Cilegon, coal gasification in Muara Enim, and Bintuk in Papua," said Minister of Industry, Agus Gumiwang Kartasasmita in Jakarta, as quoted, Monday, December 26.

Until October 2022, export performance from the chemical industry also showed brilliant achievements, which amounted to 18.5 billion US dollars, an increase of 20 percent, compared to the same period in the previous year.

"We estimate that 2022 will reach 21-23 billion US dollars and by 2023 it is targeted to reach 25 billion US dollars," said Agus.

He said, multiplier effects or multiple impacts of industrial downstream activities that have been proven to be real, namely increasing the added value of domestic raw materials, attracting investment in the country, producing large foreign exchange for exports, and increasing the number of labor absorption.

"In order to achieve this target, the government is determined to create a conducive business climate, so that businesses can run well," said Agus.

Furthermore, Agus said, strong synergy and coordination between the government and the business world are needed. "We will always hear the aspirations of business actors," he explained.

Agus also said that there are several challenges at this time that need attention so that the downstream industry policy can run well.

"The availability of competent human resources (HR), the expansion of international cooperation to fill new export markets, such as Europe and Africa, providing incentive facilities, and strengthening negotiating capabilities and positions in an effort to deal with pressure from international trade and diplomacy," he concluded.


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