Investment in manufacturing hits Rs 230 trillion in H1

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The manufacturing sector has an investment value of 167.1 trillion rupees in the first half of 2021 (which has increased) to 230.8 trillion rupees in the first half of 2022, a double-digit increase of 38% .

Jakarta (ANTARA) – Investment in the manufacturing sector rose to 230.8 trillion rupees ($15.4 billion) in the first half of 2022 from 167.1 trillion rupees ($11.2 billion) during corresponding period of 2021, Industry Minister Agus Gumiwang Kartasasmita said. informed.

This figure represented 39.5% of the total investment value, which was recorded at 584.6 trillion rupees ($39 billion) in the first half of 2022.

“The manufacturing sector has an investment value of Rs 167.1 trillion in the first half of 2021 (which has increased) to Rs 230.8 trillion in the first half of 2022, a double digit increase of 38 %”, Minister Kartasasmita noted. here Saturday.

So far, the increased investment in the industrial sector has always had a profound impact on the national economy, he said. Apart from increasing foreign exchange and employment, it also improves the manufacturing structure so that Indonesian industries can become more competitive.

“Indonesia continues to be an investment destination as it is backed by great market potential and business-friendly government policies for business players, including efforts to accelerate national economic recovery due to the impact of the COVID-19 pandemic,” explained the Minister.

The government is committed to consistently improving the conducive state of the business and investment climate, as well as controlling the pandemic so that investment can continue to increase, Kartasasmita said.

“Alongside this, domestic demand is improving, along with the momentum of community activities which has eased, as well as the shipment of booster vaccines for community and industrial workers, which guarantees the interest investors to develop in the country,” he added.

According to data from the Ministry of Investment, in January-June 2022, domestic investment (PMDN) in the industrial sector reached 65.2 trillion rupees ($4 billion), or 23.8% of the total PMDN of 274.2 trillion rupees ($18.3 billion). billion).

Meanwhile, foreign investment in the industrial sector reached 165.6 trillion rupees ($11 billion), accounting for 53.4% ​​or the largest part of the total FDI (foreign direct investment) of 310.4 trillion. rupees ($20.7 billion).

“Investors are currently targeting more productive sectors, such as manufacturing, compared to other sectors. Therefore, in addition to encouraging the capital-intensive industrial sector for technology transfer, we are also encouraging the labor-intensive industrial sector with the aim of increasing job vacancies in the country” , informed Kartasasmita.

During the first half of 2022, the manufacturing sector that recorded the highest domestic capital investment was the food industry, with a value of 24.2 trillion rupees ($1.6 billion), up 8.8% on an annual basis.

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The industries that attracted the most FDI were the basic metals, metal products, and machinery and equipment industries, which recorded an investment of $5.7 billion, up 26.3%, and the chemical and pharmaceutical industry, which raised $1.8 billion in investment. , an increase of 8.1%.

“Cumulatively, for domestic capital investment and foreign domestic investment in the first half of 2022, the most dominant investment in manufacturing was (seen in) basic metallurgical industry, metal products, non- machinery and equipment, valued at Rp.87.9 trillion ($5.9 billion) an increase of 15% (year-on-year), followed by food industry at Rp.42 trillion (2. 8 billion dollars) an increase of 7.2%”, noted the minister.

According to Kartasasmita, the government’s policy to pursue industrial downstream and stop raw material exports could potentially lead to increased investment, especially in the smelting and refining industry.

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“Smelters are starting to appear in a number of regions outside of Java. This means it will promote economic equity or be in line with Indonesia-centered development,” the minister said.

In addition, efforts are needed to make Indonesia a country with environmentally friendly industries, because nowadays the global community tends to choose products from industries that use new and renewable energy. .

“In addition to efforts to increase the added value of domestic raw materials through industrial downstream, we are also committed to pursuing the development of green industries and building an ecosystem of electric vehicles. This is in line with the priority program of the road Making Indonesia 4.0 map, with the goal of reaching the Top 10 countries with the strongest economies in the world by 2030,” the minister added.

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