The ministry of industry sees the non-oil and gas processing industry to grow 3.95 percent in 2021, based on the assumption that the COVID-19 pandemic can be controlled and vaccines are gradually available in Indonesia - Photo by Industry Ministry Office

JAKARTA (TheInsiderStories) – The ministry of industry sees the non-oil and gas processing industry to grow 3.95 percent in 2021, based on the assumption that the COVID-19 pandemic can be controlled and vaccines are gradually available in Indonesia. Before the COVID-19 pandemic, the department still optimistic the industry sector could grow 5.3 percent.

The official at the ministry, Eko Cahyanto, still optimistic the growth of the non-oil and gas processing industry will continue until the fourth quarter of 2020 in line with the increase in exports and Indonesia’ manufacturing Purchasing Manager’ Index (PMI) by around 2.22 percent.

The sub-sectors that support the improvement of national manufacturing performance during the current pandemic include the pharmaceutical industry, products, chemical drugs and traditional medicines, the chemical industry and goods made of chemicals, the basic metal industry, and the food industry.

“For 2021, we are optimistic that all sub-sectors of the non-oil and gas processing industry will improve so that they can encourage higher growth,” said the official.

Nex year, adds by Cahyanto adds, the investment in the manufacturing industry is projected to grow by 22 percent next year to Rp323.56 trillion compared to 2020′ targets. In nine months, the amount grew 37.1 percent compared to the same period last year.

“This proves that investment in the industrial sector is not affected by the COVID-19 pandemic,” he noted.

The largest investment was contributed by base metal industry, metal goods, and non-machinery amounting to Rp69.79 trillion. Followed by the food industry Rp40.53 trillion, and the pharmaceutical chemical industry Rp35.63 trillion.

Despite being hit by the pandemic, according to him, the contribution of the non-oil and gas processing sector to gross domestic product still high at 17.9 percent compared to other sectors.

Commenting on the targets, senior economist of the Institute for Development of Economics and Finance, Faisal Basri, predicted that almost all sectors of the non-oil and gas processing industry would recover in 2021. He rated, the food and beverage industry one of the sector that continues to grow positively amid the virus outbreak beside the automotive industry.

While, Deputy chairperson of the Indonesian Employers’ Association, Shinta W. Kamdani, the country needs priority sectors map to boost the manufacturing sectors. The stimulus is also very important, both on the supply and demand side, said the businesswoman.

US$1: Rp14,100

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