VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

The Indonesian government focuses on encouraging the realization of investment in the industrial sector both from domestic and foreign investors. This strategic step aims to deepen the structure of manufacturing in the country so that it can strengthen the supply chain and competitiveness. Head of Data and Information Center of the Ministry of Industry, Janu Suryanto said in Jakarta, Thursday (4/6) that the Ministry would continue to oversee investment in the industrial sector in a bid to spur production capacity and to meet the needs of the domestic and foreign market. Although in the midst of heavy pressure from the impact of the Covid-19 pandemic, Janu emphasized that the government remains determined to create a conducive business climate in Indonesia.

According to the Ministry of Industry Data and Information Center, in addition to still targeting investments from the industrial sector that produces imported substitute products, the government will also be more aggressive in attracting investments that can create jobs or labor-intensive sectors. According to Janu, industrial activity has so far been proven to have a broad impact on the national economy through an increase in the value added of raw materials, foreign exchange earnings from exports, and employment. He also revealed that Indonesia is still the main destination country for investment, especially for the manufacturing industry sector. This potential is supported by the availability of a large market and abundant raw materials.

In fact, Indonesia is considered to have the advantage to be used as a manufacturing hub in the ASEAN region. Another attraction for investors is because Indonesia has stated its readiness to implement industry 4.0 through the implementation of the Making Indonesia 4.0 road map. The Ministry of Industry noted that during the period 2015-2019, the total value of foreign investment from the manufacturing industry sector amounted to US$61.5 billion dollars. Over the past five years, the sector which has contributed the most to foreign investment has been the base metal industry which has poured funds up to US$12.8 billion dollars. Then, this was followed by the chemical industry and chemical goods as much as US$9 billion dollars, and the food and beverage industry was US$8 billion dollars. Meanwhile, the sector with the highest domestic investment in the same period in a row was the food and beverage industry amounting to 158.3 trillion rupiah.