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JAKARTA - The metal, engine, means of transportation and electronics (ILMATE) industry grew 14.23 percent (yoy), in the first quarter of 2023. This achievement surpassed the national economic performance which grew by 5.03 percent in the same period in 2022.

Secretary of the Directorate General of ILMATE of the Ministry of Industry (Kemenperin) Yan Sibarang Tandiele said, the ILMATE sector remains the main contributor in supporting the growth of the manufacturing industry in the first quarter of 2023, with its contribution reaching 25.96 percent (yoy) or an increase compared to the previous period (4-2022 quarter) which was only 25.16 percent.

"In detail, almost all ILMATE sub-sectors grew in double digits, with the largest growth in the transportation industry sector that advanced at 17.27 percent, followed by the basic metal industry (15.51 percent), as well as the metal goods industry, computers, electronic goods and electrical equipment (12.78 percent)," Yan said in a written statement, Monday, May 8.

Yan said, the transportation equipment industry has grown rapidly above national economic growth since the second quarter of 2022. This is because it is driven by the success of the sales tax discount incentive program on luxury goods borne by the government (PPnBM-DTP) four-wheeled vehicles that are able to provide stimulus for improving the performance of their supporting industries, especially those engaged in the automotive component industry.

"In addition, the growth of the transportation equipment industry in the first quarter of 2023 grew significantly and contributed 9.67 percent to the achievements of the non-oil and gas processing industry, which was also driven by increased vehicle production to meet demand for new vehicles ahead of Eid, as well as increased production of electric vehicles," he said.

Furthermore, the performance of the basic metal industry is among those consistent above national economic growth since 2020. This shows that the basic metal industry is one of the sectors that has been able to survive in the midst of the COVID-19 pandemic some time ago.

"In the first quarter of 2023, double-digit growth in the basic metal industry was driven by a surge in foreign demand, especially nickel ore processed products, such as nickel fero, nickelcurrency, and nickel pig iron," said Yan.

The growth of the basic metal industry is in line with the government's program in implementing industrial downstream policies to increase the added value of domestic raw materials which have a broad impact on the national economy.

"We will continue to make efforts to increase the growth of the manufacturing industry, especially the ILMATE sector with policies that support industrial transformation 4.0, increasing competitiveness, and increasing industrial products, such as green transportation policies through the development of electric-based motorized vehicles and industrial downstreaming," he concluded.


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