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Monday, 03 January 2022 09:52

Industrial sector still the main support for national economy

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The Indonesian Ministry of Industry focuses on continuing to build a manufacturing industry sector that is sovereign, independent, competitive and inclusive.However, the Covid-19 pandemic has had an impact on efforts to achieve these national priority targets.Despite the turmoil and challenges caused by the pandemic, the Indonesian manufacturing industry sector has consistently played its important role as the main driver and support for the national economy. Minister of Industry Agus Gumiwang Kartasasmita stated this at the Ministry of Industry's 2021 End of Year Press Conference in Jakarta last Wednesday. He emphasized the manufacturing industry sector is the main driving sector for Indonesia to leave the recession.

Minister of Industry Agus Gumiwang said in 2021 the manufacturing industry sector began to bounce back. This can be seen from a number of brilliant performances, including investment realization, export achievements, tax contributions to gross domestic product (GDP) and the ranking of the Purchasing Managers Index (PMI). During January-September 2021, realization of investment in the manufacturing sector increased by 17.3 percent when compared to investment realization in the same period in 2020.

In terms of the achievement of export value, the contribution of the manufacturing industry sector continues to increase. The export value in January-November 2021 reached 160 billion US dollars or contributed 76.51 percent of total national exports. This figure has exceeded the achievement of manufacturing exports throughout 2020. Agus Gumiwang emphasized, when compared to January-November 2020/ then the export performance of the manufacturing industry in January-November 2021 increased by 35.36 percent, while maintaining the trade balance surplus that was printed in May 2020.

He added the achievements of the manufacturing industry sector in terms of investment and exports accompany the contribution to state revenue and to the formation of national GDP which continues to increase. For the manufacturing industry sector tax throughout the year, on average it contributes 29 percent, while excise revenue from the industrial sector contributes 95 percent of total national excise revenue. As for the contribution aspect in GDP, the contribution of the manufacturing industry in the third quarter of 2021 amounted to 17.33 percent. This figure is the highest among other economic sectors

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