JAKARTA (TheInsiderStories) - The Ministry of industry recorded around Rp32.5 trillion (US$2.30 billion) of investment in agro industry has potential to enter Indonesia, said the official last week. Director general at the department, Abdul Rochim, the investments will separate in 26 projects.
The projects, said the official, divided in three sectors such as food industry (Rp19.94 trillion). Then, beverage industry, tobacco products, and fresheners, bottled drinking water, milk and milk products, soft drinks, and chocolate (Rp2.66 trillion). And, forest and plantation products industry which includes refinery and fractionation of palm oil, biodiesel, palm oil, pulp and paper (Rp10 trillion).
The director at the ministry, Supriadi, added, investing in the food and beverages industry has reached Rp40.5 trillion. This number is 20 percent of the total investment into the processing industry, which is valued of Rp201.8 trillion in the nine months of 2020.
“The government has also set several priority industrial sectors to be developed contained in the National Industrial Development Master Plan, in which the food industry is prioritized,” he explained by adding one of focuses to maintain the availability of the raw materials for the food and beverage industry and assured the availability of markets and fiscal facilities.
Previously, industry minister, Agus Gumiwang, said that the development of the agro industry in Indonesia is quite prospective due to the support of a large domestic market. He also noted that there are plans from 12 manufacturers to invests in Indonesia with a total value over than Rp1,000 trillion until 2023. T
“We are ready to oversee the realization of this investment, because it will be very helpful for the import substitution program,” said the minister.
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.
Kartasasmita conveyed, his office 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. He emphasized to achieve the targets, his ministry will implementing the Making Indonesia 4.0 road map.
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 $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: Rp14,100
Written by Editorial Staff, Email: theinsiderstories@gmail.com
