The Ministry of industry noted that there are plans for a number of manufacturing companies invests in Indonesia with a total value over than Rp1,000 trillion (US$67.57 billion) until 2023 - Photo by the Ministry Office

JAKARTA (TheInsiderStories) – The Ministry of industry noted that there are plans for a number of manufacturing companies invests in Indonesia with a total value over than Rp1,000 trillion (US$67.57 billion) until 2023. The investment comes from 12 companies.

“We are ready to oversee the realization of this investment, because it will be very helpful for the import substitution program,” said the minister, Agus Gumiwang Kartasasmita, in an official statement.

The sectors included the agricultural machinery and machine tools industry, upstream and downstream chemical industry, pharmaceuticals, metal, smelter, electronics and telematics, also seafood and fisheries industry. Next, beverage, tobacco and fresheners, textile, leather and footwear, automotive, non-metal mineral, and the forest and plantation products industry.

The ministry, he added, also focused to realize an import substitution program by 35 percent in 2022 to accelerate the national economic recovery due to the impact of the pandemic. Kartasasmita emphasized to achieve the targets, his office will implementing the Making Indonesia 4.0 road map.

There are seven priority sectors on the roadmap for Making Indonesia 4.0 like food and beverage, textile and clothing, chemical, automotive, and electronics industries. These five sectors alone has presented 70 percent of the industrial GDP in Indonesia, 60 percent of total exports and labor absorption.

During the second quarter of 2020, the industrial sector still gave the largest contribution to the national gross domestic product (GDP) structure, reaching 19.87 percent. While, in the first semester (1H) of 2020, total export values of the manufacturing products recorded $60.76 billion or 79.52 percent of the total national exports which reached $76.41 billion, despite pressured from the global economy and the pandemic, said industry minister today.

“The trade balance of the non-oil and gas processing industry in June 2020 recorded a surplus of USD 531.47 million,” said Kartasasmita.

Based on data from the statistics bureau, the export of non oil and gas processing industry in June 2020 was $9.6 billion, up 15.96 percent compared to May 2020 which touched of $8.3 billion. In addition, the shipment value of manufacturing industry products in the sixth month of this year also experienced a 7 percent jump compared to the achievements in June 2019 which were recorded of $9 billion.

In terms of volume, manufacturing industry exports in June 2020 were recorded at 8.87 million tones, or a 9.28 percent increase compared to May 2020 which reached 8.12 million tones. The food and beverage industry sector became the largest contributor to foreign exchange revenues from the non-oil and gas manufacturing industry during June 2020, which reached $2.23 billion.

Followed by exports from the base metal industry which penetrated $1.67 billion, then shipping chemical industry products and goods from chemicals amounted to $1 billion. While, sectors that experienced an increase above 30 percent from the previous month included the printing and reproduction industry of recording media, which rose by 228.63 percent with an export value of $2.55 million.

Then, other transportation equipment industry jumped 74.15 percent with export value of $131.83 million, electrical equipment industry rose 50.39 percent to $383.55 million, textile industry ride 45.38 percent to $271.38 million, non-metal mining industry climbed 44.19 percent to $83.85 million, motor vehicle industry, trailers and semitrailers up 37.98 percent to $223.69 million

In addition, the apparel industry rose 37.90 percent to $561.76 million, the computer industry, electronic goods and optics jumped 36.79 percent to $522.11 million and the rubber, also rubber goods and plastics industry up 35.95 percent with an export values of $486.36 million.

Sectors that experienced an increase in exports above 30 percent from the previous year include the furniture industry which rose by 80.87 percent to $164.70 million, then the pharmaceutical industry, chemical drug products, and traditional medicines climbed 42.41 percent to $58.37 million.

Furthermore, the tobacco processing industry ride 42.38 percent to $104.23 million, the printing and reproduction industry of recording media up 41.38 percent to $2.55 million), also the leather, leather goods and bedding industries feet rose 40.76 percent to $433.07 million.

US$1: Rp14,800

Written by Editorial Staff, Email: theinsiderstories@gmail.com