The Ministry Of Industry Notes The Investment Of The Manufacturing Sector Of Tembus IDR 497.7 Trillion Throughout 2022

Minister of Industry Agus Gumiwang Kartasasmita. (Photo: Theresia Agatha/VOI)

JAKARTA - The Ministry of Industry (Kemenperin) noted that the manufacturing industry earned investments of IDR 497.7 trillion throughout 2022.

This indicates that Indonesia is still an investment destination for national and global manufacturing industry players.

"This achievement increased by 52 percent compared to investment in the manufacturing sector in 2021. The industrial sector is still the largest contributor to investment compared to other sectors. In addition, this is an important signal that the level of trust in Indonesia is still high. Investors still see Indonesia is good for business and investment," said Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in a press statement, Thursday, January 26.

Agus said that the government also continues to make proactive efforts to attract national and global investors to invest in Indonesia.

"The government seeks to create a conducive investment climate for business actors by maintaining good economic and political stability in the country. This increase in investment shows that government policies are still on the right track," he said.

Referring to data from the Ministry of Investment/Investment Coordinating Agency, throughout 2022, total investment in the country has reached IDR 1,207.2 trillion.

This is based on the establishment of business capital, investment through Domestic Investment (PMDN) in that period, which reached Rp552.8 trillion or 45.8 percent, while investments originating from Foreign Investment (PMA) in January-December 2022 amounted to Rp654.4 trillion or 54.2 percent of total investment throughout 2022.

Of the total investment (PMDN and PMA) in January-December 2022, the manufacturing sub-sectors that contributed the most are the basic metal industry, metal goods, not machinery and equipment which reached Rp171.2 trillion.

"This brilliant achievement cannot be separated from the course of the downstream industry policy, one of which is the efforts to eliminate nickel which is being driven to support the acceleration of the development of an electric vehicle ecosystem with the development of a battery factory," said Agus.

In addition, the chemical and pharmaceutical industry sub-sector is also in the top five investments for PMDN and PMA, reaching IDR 93.6 trillion.

Meanwhile, the food and beverage industry is the industry's highest sub-sector to contribute to PMDN investment, reaching IDR 54.9 trillion or 9.9 percent.

Domestic investment also has a broad impact on the national economy, one of which is through employment.

From the additional investment during January-December 2022, it is recorded that it has absorbed 1.3 million workers.

"We hope that the increase in investment, especially in the industrial sector, can have an impact on the absorption of local workers in each region, and be able to drive the small industrial sector in the areas where the investment is aimed", said Agus.

Agus said, in order to encourage investment in the industrial sector, his party will carry out policies in the form of a 35 percent import substitution program, a program to increase the Use of Domestic Products (P3DN), and downstream natural resources.

Acceleration of increasing investment in the industrial sector is also pursued through equitable industrial development, namely by developing industrial estates throughout Indonesia.

The performance of the program can be seen from the large investment in several investment destinations outside Java in January-December 2022, including Central Sulawesi (Investment of PMA of US$ 7.5 billion), North Maluku (investment of PMA of US$4.5 billion), Riau (investment of PMDN of Rp43.1 trillion), and East Kalimantan (investment of PMA of Rp39.6 trillion).

"The government also continues to encourage investment in the development of halal industrial areas by offering several incentives, including incentives for halal industries that export, import substitution, developing halal product process technology, innovating the halal industry, as well as providing export guidance and assistance for halal Small and Medium Industry (IKM) players," concluded Agus.