Realization of investment in the manufacturing sector in the first quarter of 2022 reached IDR 103.5 trillion. This amount contributed significantly to 36.7% of the total investment value in the country in the first quarter of 2022, which reached IDR 282.4 trillion. “Investment in the industrial sector in the first quarter of 2022 rose 17% year on year. This means, in the midst of global economic turmoil and the impact of the Covid-19 pandemic, investors' confidence, especially from the industrial sector is still very high," said Industry Minister Agus Gumiwang Kartasasmita in a written statement.
The Ministry of Investment/Investment Coordinating Agency (BKPM) noted, in the first quarter of 2022, the realization of domestic investment (PMDN) in the manufacturing industry sector amounted to IDR 25.6 trillion or contributed 18.9% to the total PMDN achievement which reached IDR 135 ,2 trillion. The manufacturing sector that disbursed the largest funds in that period was the food industry with a value of IDR 9.7 trillion through 2,181 projects. Then followed by the chemical and pharmaceutical industries of IDR 4.6 trillion (846 projects), as well as the base metal, metal goods, non-machinery and equipment industries of IDR 2.6 trillion (432 projects). Meanwhile, in the first quarter of 2022, the realization of foreign investment (PMA) in the manufacturing industry sector amounted to USD 5.4 billion or contributed 52.9% of the total FDI achievement which stood at USD 10.3 billion. "The manufacturing industry sector contributed the most to the realization of FDI in the first quarter of 2022," said Agus. The dominant contributors are the base metal, metal goods, non-machinery and equipment industries, amounting to USD 2.5 billion with a total of 443 projects. Then followed by the chemical and pharmaceutical industry with USD 854 million (650 projects), the food industry with USD 686 million (951 projects), and the motor vehicle and other transportation equipment industry with USD 542 million (468 projects). The Minister of Industry explained that his party was proactive in attracting national and global investors to continue to invest in Indonesia. This aims to strengthen the structure of domestic industrial manufacturing so that it can be more globally competitive.
Agus further said that the Indonesian government is determined to further create a conducive investment climate for business actors through the provision of various fiscal and non-fiscal incentives. "The increase in investment also shows that government policies are still on the right track," said Agus. This brilliant achievement certainly cannot be separated from the implementation of the downstream industry policy, one of which is the downstream nickel effort which is being encouraged in supporting the acceleration of the development of the electric vehicle ecosystem by developing its battery factory. Referring to data from the Ministry of Investment / Investment Coordinating Board (BKPM), the total investment value in the first quarter of 2022 recorded the highest growth in the last 10 years, or grew 28.5% compared to the same period last year of IDR 219.7 trillion. The investment realization in the first quarter of 2022 has reached 23.5% of the target mandated by President Joko Widodo of IDR 1,200 trillion this year. "We are optimistic that this target can be achieved. Therefore, there is a need for legal certainty and business certainty for industrial players in Indonesia to support the business climate," said the Minister of Industry. Moreover, the G20 Indonesia Presidency event will be a momentum to open up opportunities and convey the potential for increasing investment cooperation, especially in the industrial sector," he concluded.
