Two Years of Jokowi-JK Administration, Industry Continues to Grow and Absorbs Millions of Employment

Minister of Industry Airlangga Hartanto together with Minister of State Owned Enterprises Rini Soemarno, in a Press Briefing “Two Years of Jokowi-JK Administration”, at the BinaGraha Building, Jakarta, Tuesday afternoon (25/10). (Picture: Public Relations Office/Rahmat)

The industrial sector has contributed for 18.33 percent of the Gross Domestic Product (GDP) in the second quarter of 2016. In addition, as many as 76 percent of Indonesia’s exports come from the industrial sector. By 43 percent of investment, both Foreign Investment and Domestic Investment also come from the industrial sector. Moreover, a total of 13,492,776 employments were employed in the industrial sector.

“Large industries have employed 4,001,827 employments, medium industries have employed 703.664 employments, small industries of 2,322,891 employments, and micro industries of 6,464,394 employments,” said the Minister of Industry (Menperin) Airlangga Hartanto at a Press Briefing “Two Years of Jokowi-JK Administration”, at the BinaGraha Building, Jakarta, Tuesday afternoon (25/10).

According to theMinister of Industry, both food industry and pharmaceutical industry would be the main priority for the future of industrial development. Despite of having the high-value added, these type of industries also have a vast domestic market.

Other than that, the Ministry of Industry will also focus on developing the textile industry, transportation, electronics and telematics, energy power plant, capital goods and industrial services, the upstream agro, base metals and minerals, oil,gas, and coal-basedbasic chemical, as well as Small Medium Enterprise SMEs, crafts and creative industry.

Furthermore, Minister Airlangga Hartanto explained the development of medium and large industries that includes industrial sectors of metal, machinery, transport equipment, and electronics (ILMATE); chemical industry, textile, and miscellaneous (IKTA); as well as the agro-industrial sector.

He mentioned, in 2014-2016, ILMATE sector grew by 633 units, both new and extension. The total investment value amounting to Rp75.15 trillion from domestic and foreign investment, with the employment of 85,554.

While in IKTA sector, in 2015-2016 there were 890 units, both new and extension. Meanwhile, the total investment value was Rp235.50 trillion (domestic and foreign investment) and employment absorption was 377,646 people.

“In the agro-industrial sector, in the period of 2014-2016, it grew as much as 66 units, both new and extension. The total investment value amounting to Rp72.41 trillion from domestic and foreign investment. Meanwhile, employment absorption was 21,502,” said Airlangga.

Special for investment smelting industry, Minister of Industry elaborated the number of investors up to this momenthas reached 23 companies with a total investment of US$12,2 billion, which runs 25 development projects in 17 regencies/municipalities in nine provinces.

As for the industrial zones, according to the Minister of Industry, 73 industrial estates have been built until 2016. Some areas currently have significant progress in their construction, among other things, Sei Mangke Industrial Zone in North Sumatra, which is focused on the development of oleo-chemical, Dumai Industrial Zone in Riau and Bureau Industrial Zone in East Kalimantan, which built into the Palm Oil Green Economic Zone (POGEZ), as well as Palu Industrial Zone in Central Sulawesi for the development of essential oil industry.(RMI/ES)(AAP/YM/Naster)