The Ministry of Industry (Kemenperin) noted that the realization of investment in the manufacturing industry sector reached IDR 365.2 trillion in January-September 2022 during uncertain world economic conditions. "This achievement increased by 54 percent compared to the same period last year IDR 236.8 trillion. The confidence of investors in this industrial sector must be maintained, which is supported by various strategic policies," said the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in a statement in Jakarta, Tuesday. Referring to data from the Ministry of Investment, in January-September 2022 the manufacturing sector contributed 40.9% to the total investment which reached IDR 892.4 trillion. Cumulatively, investment in Indonesia grew by 35.3% (YoY) and over the past nine months, it has reached 74.4% of the target of IDR 1,200 trillion in 2022. Meanwhile, domestic investment (PMDN) in the manufacturing sector was IDR 104.9 trillion, with the largest contribution being the food industry at IDR 38 trillion or 9.2% of the total realization of PMDN of IDR 413.1 trillion.
Meanwhile, foreign investment (PMA) in the manufacturing sector reached IDR 260.3 trillion with the largest contribution from the basic metal, metal goods, non-machine, and equipment industries amounting to USD 8.5 billion or contributed 25.3% of the total PMA IDR 479.3 trillion. "During the current world situation that is hit by food, energy, and financial crises, all countries are competing for investment. The reason is that with this investment there is an increase in added value, job creation, and an increase in foreign exchange," said the Minister of Industry. Therefore, the government focuses on creating a conducive business and investment climate by maintaining good economic and political stability in the country. "Moreover, various important development indicators continue to show improvement, and this indicates optimism for all of us to accelerate recovery and growth so that we can move towards an inclusive and sustainable economic transformation," said the Minister of Industry.
Following the direction of President Joko Widodo (Jokowi), he continued, industrial downstream is one of the keys to the progress of the Indonesian economy because it will contribute significantly to state income through export taxes, royalties, Non-Tax State Revenue (PNBP), and dividends. "As the President has often said, industrial downstream is the number one priority. As an illustration, when it was exported in the form of raw materials, the contribution of nickel commodities was around IDR 15 trillion in a year. After entering industrialization, its value jumped sharply to USD 20.9 billion or the equivalent of IDR 360 trillion," said the Minister of Industry. Based on data from the Ministry of Investment, in the third quarter of 2022 investment in the basic metal, metal goods, non-machinery, and equipment industrial sectors reached IDR 44 trillion. This figure provides the highest contribution (14.3%) to the total investment in the third quarter of 2022 of IDR 307.8 trillion. "We believe that increased investment in this sector is correlated with government policies in spurring downstream industry, especially the mining sector. This means that the government is very consistent in the investment realization that is not only driven by the service sector but has developed downstream industries so that we deepen our manufacturing structure so that it can be more efficient. competitive," said the Minister of Industry.
