Investment in the manufacturing sector will reach IDR 325.4 trillion in 2021, an increase of 19 percent from 2020 which amounted to IDR 272.9 trillion. This figure exceeds the manufacturing investment achievement target that has been projected by the Ministry of Industry (Kemenperin) of IDR 280 trillion to IDR 290 trillion. "This is an important signal for the Indonesian economy, because it shows that the level of confidence in Indonesia is still high. Investors still see that Indonesia is good for business and investment. I believe this is an important momentum for the strengthening of the Indonesian economy after the pandemic," said Minister of Industry (Menperin) Agus Gumiwang Kartasmita in his official broadcast, Monday (31/1/2022). Based on data from the Ministry of Investment/Coordination and Investment Agency (BKPM), the investment achievement of IDR 325.4 trillion consists of domestic investment (PMDN) of IDR 94.7 trillion and foreign investment (PMA) of USD 15.8 billion. From this figure, the basic metal, metal goods, non-machinery and equipment sub-sector recorded the largest investment portion, which was IDR 117.5 trillion or contributed 13 percent of the total investment throughout 2021.
So far, investment in the manufacturing sector has also had a broad impact on the national economy, one of which is through employment. "The absorption of labor in the manufacturing industry will reach 1.2 million people in 2021, bringing the total number to 18.64 million people," said the Minister of Industry. The realization of this investment is mostly spread to five regions in the country, namely West Java at IDR 136.1 trillion or 15.1%, DKI Jakarta IDR 103.3 trillion or 11.5%, East Java IDR 79 .5 trillion or 8.8%, Banten IDR 58 trillion or 6.4%, Riau IDR 53 trillion or 5.9%. "We hope that this investment in the industrial sector, apart from having an impact on the absorption of local workers in each region, is also able to move the small industrial sector in the areas that are the investment objectives," he said. To encourage investment in the industrial sector, several programs have been implemented. driven by the Ministry of Industry, among others, include the 35% import substitution program in 2022, the program for Increasing the Use of Domestic Products (P3DN), and downstreaming of natural resources.
Minister of Industry Agus also said that to accelerate the increase in investment in the industrial sector, it is also pursued through equitable distribution of industrial development, namely by developing the number of industrial estates throughout Indonesia. "As of January 2022, there are 135 industrial estate companies with a total land area of 65,532 hectares spread across Java, Kalimantan, Maluku, Papua, Nusa Tenggara, Sulawesi and Sumatra," said the Minister of Industry. Recently, the government has encouraged investment in the development of halal industrial areas by offering several incentives, including incentives for the halal industry to export, import substitution, develop halal product process technology, innovate the halal industry, and provide export guidance and assistance for halal IKM actors.
