Manufacturing Industry Performance Improves: Industry Minister

Industry Minister Agus Gumiwang Kartasasmita (Photo by: Ministry of Industry PR)

The performance of Indonesia’s manufacturing industry has seen a positive outlook in the third quarter of this year albeit remains under heavy pressure due to COVID-19 pandemic, according to Minister of Industry Agus Guwimang Kartasasmita.

Data from the Prompt Manufacturing Index-Bank Indonesia (PMI-BI) shows that the country’s manufacturing index in the third quarter of this year stood at 44.91 percent, an increase compared to that of the second quarter at 28.55 percent.

This positive achievement, the Minister continued, was sustained by all industrial sub-sectors whose performance improved during the same period.

“Industry players in the country continue to make a number of adjustments to improve efficiency and business sustainability. One of the measures being taken to reduce the impact of the pandemic is by adopting technology,” he said, Thursday (15/10).

This initiative, he added, is in accordance with Making Indonesia 4.0 roadmap, which constitutes direction and strategy to increase productivity and quality more efficiently so it will boost industrial competitiveness at the global arena.

“Innovation and technology are of paramount importance that needs to be adopted to excel in the competition, for example, through the role of startups as technology providers,” he said.

The Minister also pointed out that the Government has set a target of an import substitution program of 35 percent by 2022 that is also carried out in the acceleration of national economic recovery (PEN) due to the impact of the disease.

To that end, the industry must be able to rush to reach various new market potentials that will emerge, he said.

Agus also reiterated that the PEN policy is expected to protect, maintain, and increase economic capacity of the community, as well as to create an economic climate that is safe, healthy, and conducive to boost investment and public trust.

In addition, this policy also aims to boost people’s purchasing power and to create jobs, he added.

“We believe Indonesia will be able to grow and transform in making the most of the opportunities of this pandemic,” he said.

The Minister further said that through digital transformation, the need for technological innovation in the society and industry will increase, adding that following social restrictions, the national economy rely heavily on technology. (Ministry of Industry PR / UN).

Translator: Muhardi
Reviewed by: M. Ersan Pamungkas