The Indonesian Ministry of Finance (Kemenkeu) is actively formulating policies aimed at continually enhancing the added value in the country's manufacturing sector. Febrio Nathan Kacaribu, Head of Fiscal Policy Agency at Kemenkeu, expressed the government's commitment to improving the competitiveness of the manufacturing sector to compete globally. Strategic policies are being devised, with a particular focus on sectors that yield high multiplier effects. Febrio emphasized the significance of consistent policies in determining the competitiveness of the manufacturing sector. Efforts are directed toward refining and elevating the competitiveness of manufacturing to enhance its global standing. Addressing a press conference on the State Budget, Febrio highlighted the need for strategic measures to reinforce the manufacturing sector. The automotive sector in Indonesia currently enjoys relative strength, but the government sees opportunities to leverage the green economy ecosystem. By doing so, Indonesia aims to generate increased value within the country, contributing to the global value chain (GVC). This approach aligns with the government's vision for a robust and consistent manufacturing policy, intending to elevate the competitiveness of Indonesia's manufacturing sector.
Febrio illustrated the government's commitment to providing substantial fiscal support for the business landscape, with the manufacturing sector being the largest beneficiary of tax expenditures. Notably, the government remains focused on fiscal incentives, such as tax holidays and tax allowances, ensuring their effectiveness in augmenting the value-added by various business sectors. In summary, the Indonesian Ministry of Finance is proactively crafting and implementing policies designed to propel the manufacturing sector to greater competitiveness globally. The emphasis on strategic measures and fiscal support, especially for tax incentives, reflects the government's dedication to fostering a resilient and globally competitive manufacturing environment in Indonesia.
