Govt to Provide Incentives for 5 Export Industries

TEMPO.CO, Jakarta - The government planned to grant incentives for five industries that highly contributed to the national gross domestic product (GDP) and export next year. Industry Minister Airlangga Hartarto expected this development of the processing industry could recover the trade balance deficit which valued US$7.5 billion up to November 2018.

The five industries are: 1. food and beverages; 2. chemistry; 3. metal, computer, electronics, and machinery; 4. transportation equipment; and 5. textiles and clothing. “The government is currently considering kind of incentives that can boost export. Discussion on this matter is still afoot,” said Airlangga, Wednesday, December 10.

The minister pinned hope incentives distribution would encourage those five industries to increase export business and utilize more domestic components (TKDN).

“We believe those five sectors can boost the trade balance. Besides, export from the processing industry contributes up to 72.28 percent in 2018,” Airlangga added.

The ministry’s Secretary-General Haris Munandar further explained the government also concerned on the use of domestic components and implementation of non-tariff measures (NTM) in a bid to protect the domestic producers and encourage the competitiveness of local products through human resources training and industry vocational school.

“Industrial growth in 2018 is averagely recorded at 4.9 percent. We hope in the forth quartal of 2018 the figure can increase. I am optimistic it will rise to 5 percent,”

LARISSA HUDA