Industry Minister: Investment Realization in Industrial Sector Reaches Rp272.9T in 2020
Minister of Industry Agus Gumiwang Kartasasmita (Photo by: Documentation of Cabinet Secretariat)
Investment realization in industrial sector grew by 26 percent, from Rp216 trillion in 2019 to Rp272.9 trillion in 2020, Minister of Industry Agus Gumiwang Kartasasmita has said.
Citing data from the Investment Coordinating Board (BKPM), the Minister unveiled that amid COVID-19 pandemic, the industrial sector disbursed funds of Rp272.9 trillion or contributed to 33 percent of the total national investment value of Rp 826.3 trillion.
As a result, the national investment realization exceeded the Rp817.2 trillion target of 2020 or exceeded 101.1 percent.
“This is an extraordinary achievement in the midst of the pandemic. In fact, investment in the industrial sector has managed to grow in double digits,” the Minister said in a written statement, Tuesday (26/01).
The Minister also extends appreciation to industry players for their commitment to invest in Indonesia.
The confidence of national industry players to expand is reflected in the achievement of domestic investment (PMDN) in the manufacturing sector in 2020, which amounted to Rp82.8 trillion or grew by 14 percent compared to that of 2019 which reached Rp72.7 trillion.
The local industrial investment realization contributed up to 20 percent of the total PMDN value of Rp413.5 trillion in 2020.
In addition, he said, Indonesia is still considered as an investment destination country for global industry players. The achievements of foreign investment (PMA) in the manufacturing sector in 2020 amounted to Rp190.1 trillion or grew by 33 percent compared to the achievements in 2019 which reached Rp143.3 trillion.
The realization of this global industrial investment contributed up to 46.1 percent of the total PMA value of Rp412.8 trillion in 2020.
The Government, he continued, is committed to continuously creating an investment climate that is conducive in the country through the implementation of various strategic policies, such as providing incentives and facilitating business licenses for industry players.
Moreover, investment in the industrial sector has brought broad impacts on the national economy, including on the added value of domestic raw materials, local labor absorption, and foreign exchange, he added.
“We will exert our utmost efforts so that the performance of the manufacturing industry sector can bounce back amid the pandemic. The accomplishment of the investment figure has raised optimism that 2021 will be a stepping year for efforts to accelerate national economic recovery,” he stated.
The Ministry, Agus said, aims the investment realization in the manufacturing industry sector in 2021 to increase to Rp323.56 trillion. This optimism is sustained by the implementation of the Job Creation Law and the improved post-vaccination global economy, he added.
This year, he further said, several sectors including food and beverage, basic metals, automotive, and electronics, are still investors’ favorites.
“We will also encourage, among others, the development of investment in the pharmaceutical and medical device industries,” Agus said, adding that the Government has set priorities on the sectors on the road map for Making Indonesia 4.0.
Based on BKPM data, the base metal, metal goods, non-machines and equipment sector provided the largest contribution to the realization of investment value in 2020, by disbursing funds of Rp4.8 trillion or contributing up to 11.5 percent.
“In particular, the increased investment in the metal industry sector is in line with the Government’s aim to strengthen the downstream industry and restrictions on mineral exports have actually encouraged increased investment in that sector,” he said. (PR of Ministry of Industry/UN) (FI/MUR)
