JAKARTA - The processing industry is increasingly disbursing funds to increase capacity and make Indonesia a production base to meet the needs of the domestic and export markets. This is reflected in the realization of investment in the industrial sector which reached Rp230.8 trillion or contributed 39.5% of the total investment value, which reached Rp584.6 trillion in the first semester of 2022.
The Minister of Industry explained that increased investment in the industrial sector has always provided an overall multiplier effect for the national economy. In addition to increasing foreign exchange and employment, it will also strengthen the domestic manufacturing structure so that industries in Indonesia can be more competitive on the global stage.
Agus emphasized that the government is determined to improve a conducive business and investment climate consistently. Through maximum efforts to controlling the Covid-19 pandemic, the realization of investment realization will continue to increase.
Referring to data from the Ministry of Investment / Investment Coordinating Board (BKPM), in January-June 2022, domestic investment (PMDN) in the industrial sector was IDR 65.2 trillion or contributed 23.8% of the total PMDN, which reached IDR 274.2 trillion. Meanwhile, foreign investment (PMA) in the industrial sector penetrated Rp. 165.6 trillion contributed the highest at 53.4% of the total FDI, reaching Rp. 310.4 trillion.
During the first semester of 2022, the manufacturing sector that contributed the most to the achievement of PMDN was the food industry, with a value of Rp. 24.2 trillion, up 8.8% year-on-year (year-on-year). Furthermore, for FDI achievements, the largest contribution from the manufacturing sector was the basic metal, metal goods, non-machinery, and equipment industry which reached USD 5.7 billion or an increase of 26.3% (YoY), and the chemical and pharmaceutical industry, which amounted to USD 1.8 billion or up 8.1% (YoY).
According to him, the government's policy of consistently implementing industrial downstream and stopping exports of raw materials is considered a potential for increasing investment, especially in the smelting and refining (smelter) industry.
In addition, efforts are needed to make Indonesia a country with an environmentally friendly industry. This is because today's world prefers products from industries that use new and renewable energy (EBT).