The Minister of Industry, Agus Gumiwang Kartasasmita, expresses optimism about the manufacturing sector achieving a growth target of 5.8% in 2024 despite global geo-economic and geopolitical challenges. The manufacturing industry has been a vital contributor to Indonesia's economic growth, holding a prestigious position as one of the top 10 global manufacturers, being the only ASEAN country on the list. Minister Agus Gumiwang emphasizes the well-managed growth of the manufacturing industry, making it a focal point for collective attention. The manufacturing sector has played a crucial role in the national Gross Domestic Product (GDP), accounting for 16.83% in the third quarter of 2023. During the same period, the manufacturing industry achieved a growth rate of 5.02%, surpassing the national economic growth rate of 4.94%. Additionally, the manufacturing sector continues to be a major contributor to Indonesia's export value, with over USD 171.23 billion in exports from January to November.
Minister Gumiwang expresses confidence that the manufacturing sector's performance will continue to soar in the Year of the Wood Dragon, anticipating improved global conditions and national economic prospects. Projections for non-oil and gas processing industry growth are set at 4.81% for 2023, with a target of 5.80% in 2024. To achieve these goals, the Ministry of Industry will focus on several priority programs such as competency-based vocational education and training programs, restructuring machinery and/or equipment for small and medium-sized enterprises (SMEs), and fostering new entrepreneurship and technology-based SME startups. Efforts will also be made to enhance value addition and competitiveness through the Domestic Component Level (TKDN) certification program, continuing downstreaming natural resources in three sectors: agro-based industry, mining and mineral-based industry, and oil and coal-based industry. Other planned initiatives involve government assistance programs for the purchase of new two-wheeled motorized vehicles, industrial zone development, and facilitation of green industry certification. It is noteworthy that the Ministry of Industry's budget allocation in the 2024 State Budget is IDR 3.76 trillion. In 2023, the budget reached IDR 4.53 trillion, including a subsidy for electric motorcycle programs amounting to IDR 1.4 trillion. Minister Gumiwang reaffirms the ministry's dedication to achieving optimal budget absorption, highlighting that in 2023, the absorption rate was 98.3%. Notably, the electric motorcycle subsidy program in 2023 saw 11,532 units disbursed, amounting to IDR 80.7 billion out of the targeted 200,000 units with a total budget of IDR 1.4 trillion.
