WNAM REPORT: Industry Minister Agus Gumiwang Kartasasmita has highlighted that the manufacturing sector has remained the backbone of the national economy and the largest contributor to the gross domestic product (GDP).
“To this end, strategic policies that can encourage improvement in efficiency, productivity, competitiveness, and sustainability of the manufacturing sector are needed,” he said here on Wednesday.
In 2024, the manufacturing industry recorded a positive performance, as reflected by the export value of the non-oil and gas processing industry, among other things. The export value reached US$196.54 billion, making up 74.25 percent of the total national exports.
In addition, the value of manufacturing industry exports last year increased by 5.33 percent compared to 2023.
Furthermore, the realization of manufacturing industry investment in 2024 was recorded at Rp721.3 trillion (around US$44.2 billion). It contributed 42.1 percent to the total investment realization in Indonesia of Rp1,714.2 trillion.
The contribution of manufacturing investment in 2024 was also the largest compared to other sectors and showed a drastic increase compared to the previous year, when it stood at Rp596.3 trillion.
In addition, the non-oil and gas processing industry recorded a growth of 4.75 percent in 2024, with the country’s economic growth reaching 5.03 percent.
The minister stated that President Prabowo Subianto is paying attention to efforts to revive the confidence of industry players in Indonesia.
“This is marked by the issuance of pro-businesses policies, such as the extension of the certain natural gas prices (HGBT) policy for industries,” he added.
The Ministry of Industry is still awaiting the revocation of the import relaxation policy for finished products, which is expected to help protect the domestic market, boost competitiveness, and optimize the use of local products.
Kartasasmita expressed optimism that with the policies and stimuli that could encourage industry players to boost their business activities, the national economic growth target of 8 percent can be achieved.
