Ministry of Industry: Industrial Estate Holds Important Role Encourages Indonesian Economy

INDUSTRY.co.id - Jakarta, Industrial area plays a strategic role in encouraging development and economy in Indonesia. This can be seen from the increased efficiency and ease of infrastructure provision as well as efforts to attract investment and provide extensive employment.

"With the increase of employment, the income of the community will also increase and also affect the regional economic revenues," said Director General of Industrial Zoning Development (PPI) of the Ministry of Industry, Imam Haryono during a discussion with Journalist Industry Forum in Kemenperin office, Jakarta (18 / 7/2017).

In addition, Imam continued, for companies located in industrial estates, considered capable of spurring productivity and create higher value added.

Some indicators indicate that the accelerated spread of industrial development is already on the right track and showing satisfactory results. In 2014, the industrial sector outside Java contributes 16.53 percent of the total GRDP and in 2016 it increases to 16.84 percent.

"This increase shows that the industrial sector continues to grow outside of Java and contributes positively to the national industrial sector," said Imam.

Furthermore, the contribution of outside Java in the GDP of non-oil and gas processing industry shows an increasing trend. In fact, slowly the non-oil and gas processing industry sector began to shift out of Java. This is evident from the increasing contribution of the non-oil industry sector from 27.47 percent in 2014 to 28.06 percent of the total value added of the national non-oil and gas industry sector in 2016.

"The increasing role of outside Java in the industrial sector is also encouraged by the increasing investment in the region," said Imam.

Direct investment in the form of FDI outside Java in the period 2010-216 continues to increase both in terms of value and contribution. Total foreign direct investment that goes out of Java continues to increase from USD13.09 billion in 2014 to USD14.19 billion in 2016.

"The contribution also continues to increase from 45.89 to 49 percent of the total PMA investment nationally in the same period," continued Imam.

Meanwhile, for PMDN, the value also increased from Rp59.02 trillion in 2014 to Rp89.88 trillion in 2016. In terms of percentage also increased from 37.82 percent to 41.47 percent in the same period.