TEMPO.CO, Jakarta - The Indonesia Investment Coordinating Board (BKPM) targets investment in manufacturing sector to increase by 52.7 percent or Rp313.5 trillion from overall investment target of Rp594.8 trillion in 2016.
BKPM head Franky Sibarani said that the increased investment is to promote Indonesia's economic transformation from consumption-based to production-based.
"[President Joko Widodo] in his speech said that there's a change in the economic paradigm from consumptive to productive. By increasing investment realization portion in the manufacturing sector, industrialization will occur in the future," Franky said in a press release.
Franky said that larger value of investment in the manufacturing sector is expected to come from basic metal, metal goods and machine and electronics industry; basic chemistry industry; chemical goods and pharmacy; food industry; paper industry; paper foods and printing as well as other manufacturing industries.
"Investment realization in several manufacturing sectors, such as metal industry, chemical industry, non-metal mineral industry, textile industry and wood industry, can experience high growth. Some industries, however, requires more attention, such as food industry and footwear industry," Franky said.
In order to realize the target, BKPM places the industrial sector as one of the prioritizes in investment marketing in addition to infrastructure, agriculture, maritime and tourism sector.