Minister of Industry Agus Gumiwang Kartasasmita highlighted Indonesia's continued appeal to global investors for expanding their businesses in the industrial sector. Investment in the non-oil and gas processing industry exhibited a fluctuating yet upward trend during 2014-2023, with significant growth in investment value from IDR 186.79 trillion in 2014 to IDR 565.25 trillion in 2023. Cumulatively, investments in this sector totaled IDR 3,031.85 trillion over the decade, indicating sustained investor confidence. Despite the Covid-19 pandemic, investors maintained faith in Indonesia, as evidenced by a substantial increase in manufacturing sector investments from IDR 213.44 trillion in 2019 to IDR 457.60 trillion in 2023. Notably, growth peaked from 2021 to 2023 at 48.77%, demonstrating robust post-pandemic recovery. Minister Agus emphasized that increased investment in manufacturing aligns with the government's strategy to promote downstreaming of natural resources, contributing significantly to national revenue through export taxes, royalties, and dividends.
President Jokowi's prioritization of industrial downstreaming underscores its importance, with nickel commodity value soaring from IDR 15 trillion annually to USD 20.9 billion (approximately IDR 360 trillion) post-industrialization. Agus underscored the broader impact of increased industrial investment on the national economy, particularly in employment. Despite a temporary decline in workforce numbers in 2020 due to the pandemic, the industrial sector saw continuous growth, with employment rising from 15.62 million in 2014 to 19.29 million in August 2023. The minister's optimism stems from the correlation between industrial investment growth and government policies aimed at enhancing downstream industries to boost competitiveness. The government's commitment to industrial downstreaming remains unwavering, focusing not only on service sector investment but also on developing downstream industries to deepen manufacturing capabilities. Agus concluded that industrial investment's positive trajectory reflects Indonesia's attractiveness as an investment destination, offering lucrative opportunities for global investors and contributing significantly to economic growth and employment generation.
