The metal, machinery, transportation equipment, and electronics industry group (ILMATE) grew by 14.23% (y-o-y) in the first quarter of 2023. This outstanding achievement far exceeded the national economic performance, which grew by 5.03% in the same period. Almost all ILMATE sub-sectors grew in double digits, including the transportation equipment industry, which recorded a growth rate of 17.27%, the basic metal industry at 15.51%, and the metal goods, computer, electronic goods, and electrical equipment industry at 12.78%.
The transportation equipment industry has been thriving since the second quarter of 2022 due to the success of the government's tax discount incentive program for luxury goods sales (PPnBM-DTP) for four-wheeled vehicles. This incentive provides a stimulus for the supporting industries, especially those in the automotive component industry. The growth in demand has resulted in a significant contribution of 9.67% from the transportation equipment industry to non-oil and gas processing industry in Q1-2023. The growth in the basic metal industry is consistent with the government's program to increase the value of domestic raw materials through industrial localization policies, which have a broad impact on the national economy.
Indonesia is the world's largest owner of nickel reserves, estimated at 21 million metric tons in 2022, which is equivalent to Australia's reserves during the same period. The two countries contributed 21% of the total global nickel reserves last year.
