March 08, 2021 | Invest Indonesia

Indonesia Optimizes Role of Industry to Spur Economic Recovery

Source from: Tempo

Original News HERE

The Indonesian Government is optimizing the role of industry to spur the national economic recovery by issuing policies and stimulus meeting the needs of businesses, according to an official.

“The Ministry of Industry has made various strategic efforts to increase the competitiveness of industry so that it can boost the national economic growth amid the pandemic,” Eko SA Cahytanto, the Director General of Resilience, Territory and International Industrial Access (KPAII) at the Ministry of Industry, said.

The country’s industry consistently became the largest contributor to the national GDP. In 2020. The manufacture, for instance, contributed 17.89 percent, he a statement on Sunday.

“In 2020, industrial sector exports reached US$131.13 billion or contributed 80.30 percent of the total national exports. Meanwhile, the investment value in the industrial sector in 2020 amounted to Rp272.9 trillion, an increase compare to Rp216 trillion in 2019, ” he noted.

Currently, the government has developed 128 industrial zones and is constructing 38 more across the country.

In accordance with the 2020-2024 RPJMN (National Middle Term Development Plan), 27 priority industrial zones will be developed mostly outside Java Island. They comprise 14 industrial zones in Sumatra, six in Kalimantan, two in Java, three in Sulawesi. and Maluku, one in Papua, and one in Nusa Tenggara.

The Ministry of Industry has also been very active in accelerating the development of the halal industrial zones.

The government has been making efforts to boost the competitiveness of the national industry through the application of the Making Indonesia road map.

This program is to prioritize the development of seven industrial fileds in implementing digital technology in their production processes to make them more efficient and competitive.

The seven priority sectors are the food and beverage industry, chemical, textile and clothing, automotive, electronics, pharmaceuticals, and medical devices.

“These sectors are capable of providing contribution more than 60 percent to the national GDP. Hence, it is hoped that Indonesia will be in the top 10 of the strongest economies in the world by 2030,” he said.

In addition to, in order to attract global investment and expand the export market for the industrial sector, the Ministry of Industry is seeking Indonesia’s participation as a partner country for the Hannover Messe 2021 Digital Edition which will take place from April 12 to 16, 2021.

The government has also encouraged the industrial sector to expand non-traditional markets such as Africa, South Asia and Eastern Europe, particularly, for Indonesia’s economic recovery.

Translator: Antara
Editor: Petir Garda Bhwana