Manufacturing Industry Records Investment Of IDR 270.3 Trillion In Semester I 2023

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. (Photo: Doc. Ministry of Industry)

JAKARTA - The manufacturing industry sector recorded an investment of IDR 270.3 trillion during the first semester of 2023, an increase of 17 percent compared to the achievement in the same period the previous year (yoy).

Based on data from the Ministry of Investment/BKPM, the investment achievement in the manufacturing sector contributed 39.8 percent of the total investment realization in the country for the January-June 2023 period which reached IDR 678.7 trillion.

"We can see in the same period last year, the figure reached Rp230.8 trillion, while this year it reached Rp270.3 trillion. This shows a significant increase," said Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in a statement in Jakarta, quoted from Antara, Saturday, July 22.

The Minister of Industry said that he continues to strive so that the non-oil and gas industry sector increases the realization of investment in Indonesia.

"The Ministry of Industry (Kemenperin) is always open to industry players who need support in order to expand their business in Indonesia," added Agus.

The government also continues to be proactive in attracting national and global investors by creating a conducive investment climate for business actors.

Investment opportunities continue to be pursued, with priority for downstream-based industrialization to increase added value.

"We also encourage that increasing investment can provide benefits in accelerating technological transformation 4.0, improving the quality of Human Resources (HR), and developing green industries," explained the Minister of Industry.

The increase in investment realization until June 2023 is one of the indications showing the growth of the Indonesian economy. The Minister of Industry assessed that this positive signal is in line with the positive numbers shown by other indicators.

"As we can see in the Industrial Trust Index (IKI) in June 2023 with 53.93, as well as the Purchasing Manager's Index (PMI) Manufacturing which was recorded at 52.5, increased investment in the non-oil and gas processing industry also showed optimism for industry players. Therefore, we are determined to maintain this trust by continuing to provide support to the industrial sector in Indonesia," said the Minister of Industry.

In detail, in the second quarter of 2023, the realization of investment as a whole reached IDR 349.8 trillion, an increase of 15.7 percent yoy. The basic metal industry, metal goods, non-machinery and equipment are included in the top five sub-sectors with the highest investment realization, reaching IDR 42.4 trillion.

Other sub-sectors that also show high investment realization include the food industry, the chemical and pharmaceutical industry of the textile industry, as well as the rubber and plastic industry.

During that period, 464,289 workers were absorbed. Meanwhile, investment realization outside Java reached IDR 182 trillion, dominating the total investment of 52 percent.

"The distribution of investment is increasingly evenly distributed with the growth of industrial areas throughout Indonesia. We can see that investment realization in Central Sulawesi is in fourth place in the second quarter of 2023, amounting to IDR 26.6 trillion," said the Minister of Industry.