In the midst of global economic uncertainty, a number of industrial sectors are still confident to disburse their funds in Indonesia in order to build new factories or expand their business (expansion). This is reflected in the realization of investment in the industrial sector during January-September 2021 which reached Rp236.8 trillion or contributed 35.9% to total national investment. "Despite being faced with various global challenges, especially the impact of the Covid-19 pandemic, the manufacturing industry sector in Indonesia still plays an important role, especially as the main support or driving force for the national economy," said Industry Minister Agus Gumiwang Kartasasmita in a statement received in Jakarta, Saturday (30/10).
Referring to data from the Ministry of Investment / Investment Coordinating Board (BPKM), for nine months this year, domestic investment (PMDN) in the industrial sector reached Rp. 63 trillion and foreign investment (PMI) in the industrial sector contributed Rp. 173.8 trillion. This means that foreign investors believe that Indonesia is the right destination country to build their production base. Meanwhile, in January-September 2021, the total value of national investment was recorded at Rp. 659.4 trillion, up 7.8% compared to the same period last year of Rp. 611.6 trillion. The realization of national investment during these nine months has reached 73.3% of the target of Rp900 trillion in 2021. The Minister of Industry stated that the confidence of industry players in investing in the country is because it is supported by several strategic programs and policies that have been issued by the government. For example, the issuance of Law Number 11 of 2020 concerning Job Creation.
“The issuance of the Job Creation Law is a concrete manifestation of the government's commitment to creating a conducive business climate in Indonesia. In its implementation, the Job Creation Law has provided many conveniences for investors in the industrial sector, both in terms of obtaining business licenses and receiving fiscal and non-fiscal incentive facilities," he explained. The Minister of Industry explained that investment activities in the industrial sector have been proven to have a broad positive impact on the national economy, ranging from foreign exchange earnings to employment. "In addition, through increased investment, we are optimistic that the national industry can be globally competitive due to the deepening of the domestic manufacturing structure," he said.
In fact, investment also encourages the growth of import substitution industries. This is in line with the determination of the Ministry of Industry which wants to reduce imports by 35% by 2022. "We continue to work hard in building a manufacturing industry sector that is sovereign, independent, competitive, and inclusive," said Agus. Minister of Industry AGK added that the basic metal industry, metal goods, non-machinery and equipment were the biggest contributors to FDI achievements in the third quarter of 2021, with a value of USD 1.5 billion or contributed 20.9%. Meanwhile, cumulatively, the total realization of investment (PMA and PMDN) in the sector reached IDR 25.1 trillion. “This investment is in line with the government's steps to accelerate downstream policies in the industrial sector. The goal is to increase the added value of domestic raw materials so that they can spur the national economy. In accordance with the direction of President Joko Widodo, we no longer want to export raw materials, but export finished goods that have high economic added value," he added.
