Heaptalk, Jakarta — Indonesia’s Ministry of Industry revealed that manufacturing investment realization attained US$193 million, equal to Rp3,031 trillion in the last decade (2014 – 2023).
According to the Minister of Industry, Agus Gumiwang, investment realization in the non-oil and gas processing industry tends to fluctuate with an increasing trend from 2014 to 2023. This trend indicates that investors’ outlook towards attractiveness and profitable location possessed for their business in the archipelago.”
The Minister elaborated on the significant improvement in the non-oil and gas industry, from US$11.9 billion, approximately Rp186.79 trillion in 2014, to US$36.1 billion (around Rp565.25 trillion) in 2023.
Despite the pandemic, he said investors still have high confidence in realizing their investments in Indonesia. As a result, investment value in the manufacturing sector also multiplied significantly, from US$13.6 billion (USD1 equals Rp15,646) in 2019 to US$16.5 billion (around Rp259.28 trillion) in 2020 and continues to evolve, attaining US$19.6 billion in 2022, and bumped up to US$29.2 billion in 2023.
In its growth during the 2014-2023 period, the industry increased significantly by 24.22% in 2014 -2015, 39.18% (2015 -2016), and 48.77% in 2021 – 2023.
With this potential, the Minister of Industry is optimistic that investment in the manufacturing sector is correlated with government policy in spurring the downstream of natural resources, specifically the mining sector.
“This matter means the government consistency to make the investment realization is driven by the service sector and the prospect of developing its downstream industry in deepening its manufacturing structure to be more competitive,” Minister Agus added.
On the other hand, realizing investment in the industrial sector also has a broad impact on the national economy, including increasing the number of workers. As is known, the number of non-oil and gas processing industry workers increased to 19.29 million in 15.62 people and tends to elevate to 19.29 per August 2023.
For this reason, Indonesia’s government will continue to boost downstream industry, contributing significantly to state income through export taxes, royalties, non-tax state income, and dividends.
“As President Joko ‘Jokowi’ Widodo said, the downstream industry is a priority. As we know, it is still exported as raw materials, and the contribution of nickel commodities reaches US$959 million annually. After penetrating industrialization, the value has jumped to US$20.9 billion,” affirmed the Minister.
