Industry Minister: Manufacturing Sector Shows Resilience Amid Pandemic
Several sub-sectors of manufacturing industry in Indonesia have recorded positive growth amid economic pressure during COVID-19 pandemic, according to Minister of Industry Agus Gumiwang Kartasasmita.
“The annual growth of non-oil and gas processing industry has contracted by 2.22 percent. However, if we compare it to that in the previous quarter (q-to-q), we can see that the industry has recorded a positive trend and industrial growth has rebounded,” the Minister said in Jakarta, Monday (08/02).
According to the Minister, the base metal industry grew 11.46 percent in the fourth quarter of 2020 with increasing foreign demand, while the chemical, pharmaceutical and traditional medicine industries grew by 8.45 percent, mainly supported by increased domestic demand for soap, hand sanitizers and disinfectants as well as by increased production of medicines, multivitamins and food supplements.
“Of the many industrial sectors affected by COVID-19 pandemic, chemical, pharmaceutical and traditional medicine industries still generate high demands so they make a positive contribution to the economy,” Agus said.
The food and beverage industry, according to Agus, grew 1.66 percent in the fourth quarter of 2020, adding that this sector is one of the sectors that generates a high demand during COVID-19 pandemic.
“The food and beverage industry is a sector with a great potential. We project this sector to be able to make a significant contribution to the national economy,” he added.
Agus went on to say that other manufacturing sub-sectors which also record a positive growth in the fourth quarter of 2020 include the automotive industry and the cement industry. In the fourth quarter, car production reached 206,937 units, an increase of 82.21 percent from the previous quarter. Meanwhile, wholesale car sales or sales to dealer levels reached 159,981 units, or an increase of 43.98 percent (q-to-q).
The Minister went on to say that various policies and stimulus package had been designed by the Government to support motor vehicle manufacturers.
In the meantime, cement industry recorded production of 18.53 million tons in the fourth quarter of 2020, an increase of 2.91 percent (q-to-q). Domestic cement procurement during the period increased by 18.06 million tons or 3.11 percent (q-to-q).
In the meantime, in a bid to support competitiveness and accelerate national economic recovery, Agus added, Ministry of Industry continues to encourage the implementation of the Program for Increasing the Use of Domestic Products (P3DN), including by issuing Regulation of Minister of Industry Number 16 of 2020 on Provisions and Procedures for Calculating Domestic Content Level Value (TKDN) of Pharmaceutical Products.
“Increasing domestic content utilization is the main factor for Indonesia to become self-sufficient in the pharmaceutical sector, especially in terms of the production of medicinal raw materials,” Agus stated.
In an effort to boost industrial productivity during a pandemic, Agus added, Ministry of Industry also continues to optimize the implementation of the Operational Permit and Industrial Activity Mobility (IOMKI) which are granted to industrial companies and industrial estate companies.
“Through this instrument, Ministry of Industry continues to maintain the continuity of operations and mobility of industrial activities by prioritizing the implementation of health protocols,” the Minister said. (Ministry of Industry/UN) (RI/EP)