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Indonesia's Non-Oil and Gas Industries Grow 3.67% in 2021

8 February 2022 10:41 WIB

TEMPO.CO, Jakarta - The Indonesian Ministry of Industry recorded a growth of 3.67 percent in the non-oil and gas processing industry throughout 2021. This is higher than in 2020, where the sector suffered 2.52 percent contraction as an impact of the Covid-19 pandemic.

In his written statement on February 7, Industry Minister Agus Gumiwang Kartasasmita said that the industrial sector's 2021 performance was the result of his ministry's efforts to propose fiscal and non-fiscal incentives to help industrial players in the midst of a pandemic.

According to the Central Statistics Agency (BPS), industries that managed to post two-digit growths last year included transportation equipment (17.82 percent), base metals (11.50 percent), and machinery and equipment industry (11.43 percent).

Agus said that the acceleration of national economic recovery must come with business and legal certainties, as well as the creation of a safe and friendly business climate in the industrial sector.

His ministry now focuses on developing small and medium-sized industries (IKM) and industrial downstreaming. Agus said that Government Regulation No.28/2021 on Implementation of the Industrial Sector guarantees that the manufacturing industry can obtain raw materials through the commodity balance.

In Q4/2021, industrial sectors contributed 18.80 percent to Indonesia's GDP. Minister Agus said that the sector's recovery also helped increase labor absorption by 1.2 million workers in 2021. "Thus, the total number of workers in this sector has again increased to 18.64 million people," he said.

Read: Oil and Gas Reserves Potential in Eastern Indonesia Reaches 9.8bn Barrels

M. FAIZ ZAKI



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