Indonesia seeks to strengthen its manufacturing industries. But how? (Image via Indoforwarding)

Indonesia's Industry Ministry prepares a strategy to make domestic manufacturing more competitive

Alfonsus Adi Putra
Market & Investment
Export Import
Nov 05, 2019
2547
To strengthen export performance, Indonesia’s Minister of Industry, Agus Gumiwang Kartasasmita, said that he had formulated strategies to make Indonesian manufacturing industries more competitive on a global scale.

For the Industry Minister, Indonesia’s manufacturing industry is being buffeted by the harsh global economy. Therefore, Agus stated that the Indonesian government needs to formulate strategies to revitalize the industries once more.

According to the data from Industry Ministry, from January to September 2019, shipping of manufacturing products contributed as much as 75.51 percent to the national export total, making US$93.7 billion from the total US$124.1 billion.

Agus stated, on Tuesday, that the domestic manufacturing industries, especially automotive and food and beverage, are being encouraged to produce more in order to fulfill export market demand. The surge in export demand was directly proportional to domestic investments.

He also stated that the ministry will focus on extending the structure of domestic manufacturing industries and strengthening the value chain of raw and auxiliary materials. For the medium and long term, Agus said that the Indonesian government is also monitoring to sustain the availability of raw materials and strategic sectors.

Indonesian government released the mapping of “Making Indonesia 4.0” according to the Industrial Revolution 4.0, prioritizing five main manufacturing sectors that could contribute to the national economic growth. These industries are food and beverage; textile and clothing; automotive, chemical, and electronics.

For example, in the petrochemical industry, TubanPetro is being revitalized and extension of PT Chandra Asri Petrochemical. In the base metal industry, PT Krakatau Steel is being revitalized, the Indonesian government is optimizing the operation in Morowali Industrial Area.

Indonesia has also become the official partner for Hannover Messe 2020, a convention for manufacturing technologies. For Agus, it means Indonesia has gained access to expand the export market network for manufacturing products by encouraging cooperation in industry and investment.

It also targeted 18 industries located outside Java Island to be operational until the end of 2019, able to attract Rp250 trillion investment and providing direct job opportunities for 900,000 workers. The Indonesian government aims to shift the "Java-centered" perspective to "Indonesia-centered".

Source: https://bit.ly/34CnfWN