The Ministry Of Industry Encourages Service Actors To Design To Build Industrial Construction To Be Involved In Downstreaming

Head of the Standardization and Industrial Services Policy Agency (BSKJI) of the Ministry of Industry, Doddy Rahadi. (Photo: Doc. Ministry of Industry)

JAKARTA - The government through the Ministry of Industry (Kemenperin) is committed to continuing to support industry service players Engineering, Procurement, and Construction (EPC) or design and industrial construction services as one of the services needed in building raw material processing facilities infrastructure into various products that have high added value.

Moreover, EPC services in Indonesia have a greater chance with a potential investment of US$44.9 billion for the petrochemical industry development project and US$54.64 billion for the metal processing industry development project.

"Hopefully in the future, industrial services can provide high added value to downstream products by increasing the quality of use of materials and equipment, as well as industrial service technology so that they can become the main support in downstreaming industries in Indonesia," said Head of the Ministry of Industry's Standardization and Industrial Services Policy Agency (BSKJI) Doddy Rahadi in Jakarta, Friday, September 15.

Doddy assessed that downstreaming policies could increase the growth of the national industry in order to encourage an increase in Indonesia's GDP.

"Hilirization is considered an opportunity for Indonesia to achieve progress, with the wealth of natural resources (SDA) owned, including mineral materials, plantation products, marine products, as well as new and renewable energy sources (EBT)," he said.

To optimize the increase in added value by processing commodities into downstream products, the Ministry of Industry takes steps to bring industry, such as through investment promotion for downstream products including fiscal and non-fiscal incentives, expansion of international cooperation to fill the new export market, as well as strengthening the ability of negotiations and positions in an effort to deal with pressure from international trade and diplomacy.

Meanwhile, based on data from the Central Statistics Agency (BPS), the transportation and warehousing sectors in 2022 will grow the highest, reaching up to 19.87 percent.

It is estimated that the logistics of the manufacturing sector will be the largest potential in 2023.

Previously, the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita said that downstreaming of the industry was one of the policies that had been the focus since the beginning of President Joko Widodo's (Jokowi) leadership.

"Mr. President continues to strive so that all added value remains in Indonesia," he said.