Ministry of Industry Targets 8.3 Percent Industrial Growth



Mahinda Arkyasa

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  • TEMPO.CO, Jakarta - The Ministry of Industry attempted to achieve the industry growth target of 8.3 percent in 2024. Achieving the target is also expected to boost the manufactur sector contribution in the national economy to 18.9 percent.

    "Therefore, we are focused on improving investments and export. We will convince potential investors of the industry sector to enter Indonesia, especially to produce import substitution product," said Minister of Industry Agus Gumiwang Kartasasmita on Saturday, February 15, 2020.

    Agus delivered his statement after a work meeting with echelon II officials of the Ministry of Industry in Labuan Bajo, East Nusa Tenggara.

    The Minister had urged all of his staffs to be able to analyze quantitative target achievement. "In addition, what's important is that capable of drafting quick and correct policies," Agus added.

    Agus stated that his ministry is determined to encourage investors planning to invest in Indonesia to fullfill their commitment.

    "We are highly optimistic with a number of commitment in large scale industries, such as Hyundai, Toyota, and Amazon," Agus said.

    Furthermore, to improve national manufacture export value, the Ministry of Industry are becoming more active to encourage industries to be more aggressive in expanding their markets in non-traditional countries.

    "Aside from that, there has to be an expansion or diversification of export products aimed at benefitting from export funding facilities," Agus addded.

    The Minsitry of Industry asserted that the establishmet of an industrial financing institution is an important issue in accordance with provisions of Law No. 3 of 2014 concerning Industry.

    "We are sure that with the establihsment of a financing institution, can provide rooms for domestic industry to tap into products currently being imported. So our industries can easily gain more capital," Agus said.

    In the near future, the Ministry of Industry had also planned to visit a number of stakeholders including, credit financing institutions.

    "We hoped that they will increase the credit ceiling and expand the type of manufactured products. For example, we will talk with the Indonesian Export Financing Institution so that they will expand their program to include automotive component products," Agus explained.

    Moreover, in accordance with President Joko Widodo's instruction, domestic automotive industry needs to be accelerated to fill in the export market, specifically to Australia. This instruction was given in relation to the opportunities presented by the ratification of the Indonesia Australia Comprehensive Economic Partnership Agreement (IA-CEPA).

    "Another step is to optimize the Domestic Product Utilization Improvement [P3DN] program. To encourage P3DN program, the minsitries and institutions that receive the State Budget, especially for capital expenses, must use the budget to purchase domestic products," he said